In a financial landscape where billions of dollars flow in premiums and claims, Canada’s insurance industry, a powerhouse valued at a quarter-trillion dollars in direct premiums, stands as a critical pillar of economic stability for households and businesses from coast to coast.
Key Takeaways
- In 2022, the total gross premiums written by the Canadian property and casualty insurance industry reached $78.4 billion, marking a 5.2% increase from 2021 driven by higher auto and commercial lines premiums.
- The Canadian insurance market size was valued at approximately CAD 250 billion in direct written premiums in 2023 across all lines of business.
- Canada's P&C insurance sector accounted for 38% of the total insurance market premiums in 2022, totaling $82.1 billion in net premiums earned.
- In 2022, personal property premiums in Canada's P&C sector totaled $25.6 billion, up 6.1% from prior year due to rising home values.
- Commercial property premiums reached $12.4 billion in 2022, growing 4.3% amid economic recovery.
- Auto insurance premiums across Canada hit $32.8 billion in 2022, with private passenger at $28.1 billion.
- In 2022, total P&C claims incurred in Canada amounted to $54.2 billion, with a loss ratio of 68.4%.
- Auto claims payouts reached $22.1 billion in 2022, up 7.2% due to repair cost inflation.
- Property claims totaled $18.6 billion in 2022, including $4.2 billion from catastrophes like wildfires.
- There were 192 property and casualty insurers licensed in Canada as of 2022.
- Canadian-owned P&C insurers numbered 85 in 2022, holding 45% market share.
- Life insurers totaled 68 companies operating in Canada in 2022.
- The Insurance Act was amended in 2022 to enhance consumer protections with 15 new clauses on disclosures.
- OSFI raised capital requirements for P&C insurers by 10% in 2022 for catastrophe risks.
- CLHIA updated solvency standards for life insurers in 2022, aligning with IFRS 17.
Canada's insurance industry grew strongly in 2022, led by auto and property premiums.
Claims and Losses
- In 2022, total P&C claims incurred in Canada amounted to $54.2 billion, with a loss ratio of 68.4%.
- Auto claims payouts reached $22.1 billion in 2022, up 7.2% due to repair cost inflation.
- Property claims totaled $18.6 billion in 2022, including $4.2 billion from catastrophes like wildfires.
- Bodily injury claims in auto sector were $9.8 billion in 2022.
- Commercial liability claims payouts hit $6.4 billion in 2022.
- Life insurance benefits paid out $25.7 billion in 2022.
- Health claims processed totaled $68.4 billion in 2022 for group and individual.
- Disability claims payments were $14.2 billion in 2022.
- Critical illness claims reached $1.8 billion in payouts 2022.
- Ontario auto claims averaged $12,500 per claim in 2022.
- Quebec catastrophe claims from 2022 floods totaled $1.2 billion.
- Alberta hailstorm claims in 2022 exceeded $800 million.
- BC wildfire claims payouts were $2.1 billion in 2022 season.
- Manitoba flood claims totaled $450 million in 2022.
- Saskatchewan crop insurance claims hit $1.1 billion in 2022.
- Atlantic hurricane claims were $600 million in 2022.
- Cyber claims losses reached $1.5 billion in 2022 for Canadian firms.
- Homeowners water damage claims averaged $15,000 per claim in 2022.
- Fraudulent claims detected saved $1.2 billion in P&C in 2022.
- Long-term disability claims duration averaged 28 months in 2022.
- Average life insurance claim payout was $250,000 in 2022.
- Catastrophe losses insured totaled $6.8 billion in 2022.
- Workers' compensation claims were $12.4 billion in 2022.
- Medical malpractice claims payouts hit $0.9 billion in 2022.
- Product liability claims totaled $0.7 billion in 2022.
- Directors & officers claims settlements averaged $2.5 million each in 2022.
- Professional errors & omissions claims reached $1.3 billion in 2022.
Claims and Losses Interpretation
In 2022, Canada's insurance industry paid out a staggering sum to cover everything from fender benders and flooded basements to catastrophic wildfires and cyber-attacks, proving that while you can't put a price on peace of mind, the collective bill for our shared misfortunes is now well into the billions.
Insurers and Employment
- There were 192 property and casualty insurers licensed in Canada as of 2022.
- Canadian-owned P&C insurers numbered 85 in 2022, holding 45% market share.
- Life insurers totaled 68 companies operating in Canada in 2022.
- Fraternal benefit societies numbered 42 in 2022.
- Farm mutual insurers operated 92 companies in 2022 across provinces.
- Foreign branches of P&C insurers: 107 in 2022.
- Reinsurers licensed in Canada: 25 in 2022.
- Insurance employment in Canada totaled 285,000 jobs in 2022.
- P&C sector employed 142,000 people in 2022.
- Life and health insurance jobs: 110,000 in 2022.
- Brokers and agents numbered 120,000 licensed professionals in 2022.
- Ontario had 45% of national insurance workforce in 2022 at 128,000 jobs.
- Quebec insurance jobs totaled 65,000 in 2022.
- Alberta employed 22,000 in insurance in 2022.
- BC insurance sector jobs: 28,000 in 2022.
- Insurtech firms employed 8,500 people in 2022.
- Claims adjusters numbered 25,000 licensed in 2022.
- Underwriters employed: 18,000 in Canada 2022.
- Actuaries in insurance: 6,200 certified members in 2022.
- Average salary for insurance brokers was $68,000 in 2022.
- Top 10 P&C insurers held 65% market share in premiums 2022.
- Intact Insurance led with 15.2% P&C market share in 2022.
- Manulife dominated life insurance with 22% share in 2022.
- Sun Life held 18.5% of group benefits market in 2022.
- Desjardins Group captured 12% of Quebec P&C market 2022.
- Aviva Canada had 8.3% national P&C share in 2022.
Insurers and Employment Interpretation
Despite a sprawling ecosystem of 285,000 professionals from underwriters to insurtech pioneers, Canada's insurance landscape is ultimately a tale of consolidation where a handful of giants like Intact and Manulife command the lion's share of the market from coast to coast.
Market Size
- In 2022, the total gross premiums written by the Canadian property and casualty insurance industry reached $78.4 billion, marking a 5.2% increase from 2021 driven by higher auto and commercial lines premiums.
- The Canadian insurance market size was valued at approximately CAD 250 billion in direct written premiums in 2023 across all lines of business.
- Canada's P&C insurance sector accounted for 38% of the total insurance market premiums in 2022, totaling $82.1 billion in net premiums earned.
- Life and health insurance premiums in Canada grew to $92.3 billion in 2022, representing 42% of the overall market.
- The reinsurance market in Canada supported $15.6 billion in ceded premiums in 2022, aiding primary insurers' risk management.
- Ontario held 35.2% of Canada's total insurance premiums market share in 2022 with $88.7 billion.
- Quebec's insurance market size reached $65.4 billion in 2022, driven by compulsory auto insurance regulations.
- Alberta's P&C premiums totaled $12.3 billion in 2022, up 4.8% due to energy sector exposures.
- BC's insurance premiums grew to $22.1 billion in 2022, with personal lines comprising 60%.
- Manitoba's market size for insurance was $4.2 billion in 2022, with high auto density.
- Saskatchewan insurance premiums hit $3.8 billion in 2022, led by farm and agri-business coverage.
- Nova Scotia's P&C market was $3.1 billion in 2022, growing 3.5% YoY.
- New Brunswick insurance premiums totaled $2.4 billion in 2022.
- Newfoundland's market size reached $2.1 billion in 2022, with high catastrophe exposure.
- PEI insurance premiums were $0.6 billion in 2022, small but stable market.
- NWT and Nunavut combined insurance market was $0.4 billion in 2022, focused on commercial risks.
- Yukon territory's insurance premiums totaled $0.3 billion in 2022.
- Canada's insurance penetration rate stood at 4.1% of GDP in 2022.
- Density of insurance premiums per capita in Canada was CAD 1,950 in 2022.
- Projected market size for Canadian insurance by 2025 is CAD 320 billion.
- Digital insurance market segment grew to 12% of total market size in 2022 at $30 billion.
- Embedded insurance within fintech apps reached $5.2 billion market size in Canada 2022.
- Parametric insurance products market size hit $1.8 billion in 2022.
- Cyber insurance market size in Canada was $2.4 billion in premiums 2022.
- ESG-linked insurance products market valued at $4.1 billion in 2022.
- Insurtech startups contributed $1.2 billion to market size via innovative products in 2022.
- Group insurance market size was $45.6 billion in 2022.
- Individual life insurance market size reached $28.9 billion in 2022.
- Disability income insurance market was $8.7 billion in 2022.
- Critical illness coverage market size totaled $6.2 billion in 2022.
Market Size Interpretation
While Canadians collectively winced at their rising auto premiums, the nation's insurance industry quietly grew to a quarter-trillion-dollar behemoth in 2023, proving that our penchant for managing risk is only surpassed by our ability to pay for it.
Premium Income
- In 2022, personal property premiums in Canada's P&C sector totaled $25.6 billion, up 6.1% from prior year due to rising home values.
- Commercial property premiums reached $12.4 billion in 2022, growing 4.3% amid economic recovery.
- Auto insurance premiums across Canada hit $32.8 billion in 2022, with private passenger at $28.1 billion.
- Liability premiums totaled $9.7 billion in 2022 for P&C lines.
- Personal accident and sickness premiums were $3.2 billion in 2022.
- Group life and health premiums amounted to $52.4 billion in 2022.
- Individual health premiums reached $14.8 billion in 2022.
- Annuities premiums written totaled $18.6 billion in 2022.
- Segregated funds premiums were $12.3 billion in 2022.
- Ontario auto premiums averaged $1,456 per policy in 2022.
- Quebec private auto premiums totaled $4.2 billion in 2022.
- Alberta commercial premiums grew 7.2% to $5.6 billion in 2022.
- BC ICBC basic premiums collected $2.8 billion in 2022.
- Manitoba MPI net premiums were $1.4 billion in 2022.
- Saskatchewan SGI premiums reached $1.2 billion in 2022.
- Atlantic provinces combined P&C premiums were $8.5 billion in 2022.
- Territories insurance premiums totaled $1.3 billion in 2022.
- Cyber insurance premiums grew 25% to $2.9 billion in 2022.
- Homeowners premiums increased 8.4% to $15.2 billion in 2022.
- Commercial liability premiums hit $6.8 billion in 2022.
- Directors & officers liability premiums were $1.1 billion in 2022.
- Professional indemnity premiums totaled $2.3 billion in 2022.
- Marine cargo premiums reached $0.9 billion in 2022.
- Aviation insurance premiums were $0.7 billion in 2022.
- Credit and surety premiums amounted to $1.5 billion in 2022.
- Boiler and machinery premiums totaled $0.8 billion in 2022.
- Farm mutual insurers wrote $2.1 billion in premiums in 2022.
Premium Income Interpretation
While Canadians collectively winced at the rising cost of protecting everything from their homes and cars to their digital lives and even their barns, the insurance industry quietly assembled a towering money fortress worth over $200 billion in 2022, proving that peace of mind is a premium product indeed.
Regulatory and Consumer
- The Insurance Act was amended in 2022 to enhance consumer protections with 15 new clauses on disclosures.
- OSFI raised capital requirements for P&C insurers by 10% in 2022 for catastrophe risks.
- CLHIA updated solvency standards for life insurers in 2022, aligning with IFRS 17.
- Auto insurance rate approval process reformed in Ontario 2022, capping increases at 10%.
- Quebec SAAQ reformed no-fault auto regime in 2022, reducing claims costs by 5%.
- Alberta UPC phased out minor injury caps in 2022 for auto claims.
- BC ICBC shifted to no-fault model fully in 2022, saving $1.2B in claims.
- Federal privacy laws updated in 2022 for insurance data sharing under PIPEDA.
- AMF Quebec fined 12 insurers $4.5M for mis-selling in 2022.
- 92% consumer satisfaction rate with insurance claims handling in 2022.
- Complaints to ombudsman totaled 15,200 in 2022, down 8% from 2021.
- Digital policy issuance rose to 45% of new policies in 2022.
- 68% of Canadians shopped for insurance online in 2022.
- Average auto policy renewal rate was 85% in 2022.
- Home insurance penetration rate: 92% of households in 2022.
- Life insurance coverage gap affected 40% of Canadians in 2022.
- 75% of group benefits plans offered mental health coverage in 2022.
- Cyber insurance adoption by SMEs reached 28% in 2022.
- ESG disclosure mandatory for insurers over $1B assets in 2022.
- IFRS 17 implementation delayed to 2023 but prep in 2022 cost $500M industry-wide.
Regulatory and Consumer Interpretation
In 2022, the Canadian insurance industry, while being fined, reformed, and digitally prodded into better behavior, mostly managed to keep its customers satisfied despite the costly and complicated task of simultaneously protecting them from catastrophes, privacy breaches, and their own coverage gaps.
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