With total assets exceeding a trillion dollars and a market growing toward a quarter-trillion, the Canadian insurance industry is a massive and dynamic economic force.
Key Takeaways
- In 2022, the Canadian property and casualty insurance industry reported total net premiums written of $68.4 billion, a 5.2% increase from 2021.
- The Canadian insurance market size was valued at approximately CAD 180 billion in direct written premiums in 2023.
- From 2018 to 2022, the Canadian P&C insurance sector grew at a compound annual growth rate (CAGR) of 4.8%.
- In 2022, total P&C premiums collected reached CAD 72.1 billion gross.
- Life and annuity premiums contributed CAD 40.2 billion to industry revenues in 2022.
- Personal auto premiums increased 4.5% to CAD 19.8 billion in 2022.
- Total P&C incurred claims were CAD 52.7 billion in 2022.
- Auto claims payouts increased 6.3% to CAD 15.4 billion in 2022.
- Property claims in P&C totaled CAD 18.2 billion, up 8% in 2022.
- Total Canadian insurance employment was 285,000 full-time equivalents in 2022.
- P&C sector employed 120,000 workers in 2023.
- Life and health insurers had 165,000 employees as of 2022.
- OSFI approved 95% of new insurance products in 2022.
- Insurance penetration rate among Canadian households: 92% for auto in 2023.
- Solvency ratio for P&C insurers averaged 165% in 2022.
Canada's large insurance industry is expanding profitably while adapting to new technologies.
Claims and Payouts
- Total P&C incurred claims were CAD 52.7 billion in 2022.
- Auto claims payouts increased 6.3% to CAD 15.4 billion in 2022.
- Property claims in P&C totaled CAD 18.2 billion, up 8% in 2022.
- Life insurance benefits paid out CAD 24.1 billion in death and other benefits 2022.
- Average auto injury claim cost rose to CAD 28,500 in 2022.
- Health claims paid by insurers exceeded CAD 26.8 billion in 2022.
- Catastrophe claims from floods and wildfires: CAD 3.1B in 2022.
- Disability claims payouts were CAD 11.2 billion in 2022.
- Average home insurance claim was CAD 12,400 in 2023.
- Fraudulent claims detected in P&C saved CAD 1.8 billion in 2022.
- Long-term disability claims incidence rate was 2.1% in 2022.
- Commercial liability claims totaled CAD 6.7 billion payouts in 2022.
- Annuity payments to retirees: CAD 14.6 billion in 2022.
- Auto material damage claims averaged CAD 4,200 per claim 2022.
- Hospital claims under health insurance: 85% approval rate in 2022.
- P&C loss ratio for personal lines was 72.4% in 2022.
- Critical illness claims paid: CAD 650 million, average CAD 85K per claim 2022.
- Workers' compensation claims handled by private insurers: CAD 2.4B 2022.
- Travel insurance claims post-COVID: CAD 1.2B in 2022.
- P&C claims settlement ratio was 92% within 30 days in 2022.
- Group life claims payouts: CAD 3.9 billion in 2022.
- Fire claims losses: CAD 2.1 billion in P&C 2022.
- Dental claims processed: 120 million, totaling CAD 8.5B in 2022.
- P&C IBNR reserves were CAD 15.3 billion end-2022.
- Average liability claim severity increased 7.2% to CAD 45,000 in 2022.
Claims and Payouts Interpretation
In 2022, Canadians, their cars, and their properties managed to navigate a perfect storm of costly mishaps and misfortune, proving that while life is full of expensive surprises, the insurance industry is the reluctantly generous ledger keeping score.
Employment and Workforce
- Total Canadian insurance employment was 285,000 full-time equivalents in 2022.
- P&C sector employed 120,000 workers in 2023.
- Life and health insurers had 165,000 employees as of 2022.
- Insurance brokers and agents numbered 85,000 licensed professionals in 2023.
- Actuaries in Canadian insurance: over 6,500 members in 2022.
- Women comprised 68% of the insurance workforce in Canada 2022.
- Average salary for insurance underwriters: CAD 85,000 in 2023.
- Claims adjusters employment grew 3.2% to 25,000 in 2022.
- Insurtech firms employed 5,200 in Canada 2023.
- Training hours per employee averaged 45 annually in P&C 2022.
- Senior executives in insurance: 12% women in 2022.
- Part-time workforce in insurance: 15% of total 42,000 in 2022.
- Customer service reps: 70,000 positions in 2023.
- IT specialists in insurance grew 12% to 18,000 in 2022.
- Brokerage firms: 1,200 independent firms employing 40,000.
- Diversity: 22% visible minorities in insurance workforce 2022.
- Average tenure of insurance employees: 9.2 years in 2023.
- Underwriter vacancies: 4.5% rate in P&C 2022.
- Reinsurance sector jobs: 8,500 in Canada 2022.
- Youth employment (under 30): 18% of insurance workforce 2023.
- Remote work adoption: 45% of insurance jobs in 2023.
- Compliance officers: 10,200 roles in 2022.
- Sales agents turnover rate: 11% annually 2022.
- Finance and accounting staff: 35,000 in industry 2023.
- Cybersecurity experts: 2,800 employed 2022.
- Legal professionals in insurance: 4,500 in 2023.
- P&C claims handlers: 28,000 FTEs 2022.
- 72% of insurance CEOs have 20+ years experience in 2023.
- Apprenticeships in insurance: 1,200 new in 2022.
- Unionized workforce percentage: 12% in Canadian insurance 2022.
- Regulatory compliance staff grew 8% to 15,000 in 2023.
Employment and Workforce Interpretation
While over a quarter of a million Canadians are diligently keeping our collective anxieties insured, the industry itself reveals a complex portrait, from the impressive 68% female workforce still bumping against a 12% glass ceiling for executives, to the underwriters earning a solid $85k amidst a 4.5% vacancy rate, all while an army of 70,000 customer service reps and a rapidly growing tech squad work to navigate a landscape where nearly half the jobs can now be done remotely.
Market Size and Growth
- In 2022, the Canadian property and casualty insurance industry reported total net premiums written of $68.4 billion, a 5.2% increase from 2021.
- The Canadian insurance market size was valued at approximately CAD 180 billion in direct written premiums in 2023.
- From 2018 to 2022, the Canadian P&C insurance sector grew at a compound annual growth rate (CAGR) of 4.8%.
- Life and health insurance premiums in Canada reached CAD 85.2 billion in 2022, up 3.1% year-over-year.
- The overall Canadian insurance industry penetration rate stood at 3.8% of GDP in 2022.
- P&C insurance market share held by personal lines was 52% in 2022, totaling $35.6 billion.
- Commercial P&C lines grew by 7.1% to $32.8 billion in net premiums in 2022.
- The Canadian insurance industry's total assets under management exceeded CAD 1.2 trillion as of December 2022.
- Health insurance segment within life and health grew to CAD 28.4 billion in premiums in 2022.
- Auto insurance, the largest P&C line, accounted for 28% of total premiums at $19.2 billion in 2022.
- Canadian P&C insurers' combined ratio improved to 98.5% in 2022 from 102.1% in 2021.
- The industry is projected to grow at 4.5% CAGR from 2023-2027, reaching CAD 250 billion by 2027.
- Number of licensed P&C insurers in Canada was 192 in 2022.
- Life insurers' total premiums grew 2.8% to CAD 56.8 billion in 2022 excluding health.
- P&C market concentration: top 10 insurers held 85% market share in 2022.
- Canadian insurance exports in reinsurance reached CAD 12.5 billion in 2022.
- Total policyholders in Canadian P&C insurance exceeded 25 million in 2023.
- Annuity premiums in life insurance segment hit CAD 15.3 billion in 2022.
- Home insurance premiums totaled CAD 10.8 billion, representing 16% of P&C market in 2022.
- Digital insurance market within Canada projected to grow 12% annually to 2025.
- P&C net premiums per capita in Canada were CAD 1,720 in 2022.
- Life insurance market expected to reach CAD 100 billion by 2025.
- Insurtech startups in Canada numbered 150+ in 2023, investing CAD 500M.
- Total P&C underwriting profit was CAD 1.1 billion in 2022.
- Canadian insurance M&A deals totaled 45 in 2022, valued at CAD 4.2B.
- Group life and health premiums were CAD 22.1 billion in 2022.
- P&C catastrophe losses amounted to CAD 2.3 billion in 2022.
- Individual life insurance policies in force: 18.5 million in 2022.
- Canadian insurance industry's return on equity averaged 10.2% in 2022.
- Total reinsurance recoverable for P&C was CAD 8.7 billion end-2022.
Market Size and Growth Interpretation
Despite generating over $68 billion in premiums and managing a staggering $1.2 trillion in assets, Canada's insurance industry remains a study in cautious optimism, where auto mishaps, catastrophes, and digital disruption steadily fuel a titanic, slow-motion money magnet that somehow still leaves room for a modest underwriting profit.
Premiums and Revenues
- In 2022, total P&C premiums collected reached CAD 72.1 billion gross.
- Life and annuity premiums contributed CAD 40.2 billion to industry revenues in 2022.
- Personal auto premiums increased 4.5% to CAD 19.8 billion in 2022.
- Commercial property premiums grew 6.8% year-over-year to CAD 12.4 billion in 2022.
- Health and dental premiums totaled CAD 29.7 billion, up 4.1% in 2022.
- Homeowners insurance average premium rose to CAD 1,456 annually in 2023.
- Liability insurance premiums in P&C reached CAD 9.3 billion in 2022.
- Individual life insurance premiums were CAD 16.5 billion in 2022.
- P&C investment income for insurers was CAD 5.6 billion in 2022.
- Group health premiums accounted for 45% of health segment at CAD 13.4B in 2022.
- Auto insurance premiums per policy averaged CAD 1,450 in Ontario 2023.
- Disability income insurance premiums hit CAD 4.2 billion in 2022.
- Commercial auto premiums grew 5.9% to CAD 6.1 billion in 2022.
- Critical illness insurance premiums reached CAD 1.1 billion in 2022.
- P&C other accident premiums were CAD 3.8 billion in 2022.
- Segregated fund premiums in life insurance totaled CAD 12.3 billion in 2022.
- Average commercial liability premium per business was CAD 8,200 in 2023.
- Travel insurance premiums recovered to CAD 2.9 billion post-COVID in 2022.
- Boiler and machinery premiums stood at CAD 1.2 billion in 2022.
- Long-term care insurance premiums were CAD 0.8 billion in 2022.
- P&C net investment income after tax was CAD 4.1 billion in 2022.
- Universal life premiums contributed CAD 5.7 billion to life revenues 2022.
- Fire insurance premiums totaled CAD 7.5 billion in P&C 2022.
- Employee benefits premiums grew 3.7% to CAD 25.6B in 2022.
- P&C ceded premiums to reinsurers were CAD 9.2 billion in 2022.
- Term life premiums averaged CAD 450 per policy annually in 2022.
- Allied lines premiums in P&C reached CAD 4.9 billion 2022.
- P&C total revenues including premiums and investments: CAD 85.3B in 2022.
Premiums and Revenues Interpretation
Amidst the relentless Canadian churn of premiums, claims, and actuarial calculations, the cold arithmetic of 2022 reveals a nation collectively betting billions against disaster, with our wallets funding a vast, necessary fortress of financial reassurance against life's many fender-benders, floods, and finalities.
Regulatory and Consumer Trends
- OSFI approved 95% of new insurance products in 2022.
- Insurance penetration rate among Canadian households: 92% for auto in 2023.
- Solvency ratio for P&C insurers averaged 165% in 2022.
- Cyber insurance regulatory filings increased 25% in 2022.
- Consumer complaints to ombudsman: 12,500 in P&C 2022.
- IFRS 17 implementation completed by 98% of life insurers by 2023.
- Mandatory auto insurance coverage reviewed in 5 provinces 2022.
- 87% consumer satisfaction with claims process in 2023 survey.
- Climate risk disclosures mandated for top 20 insurers 2023.
- Unfair practices fines totaled CAD 2.5M by FSCO in 2022.
- Digital KYC adoption rate: 65% among insurers 2023.
- P&C rate approval filings: 1,200 processed by regulators 2022.
- ESG integration in 75% of insurance investment policies 2023.
- Telemedicine claims acceptance rose to 95% under regulation 2022.
- Broker licensing renewals: 92% compliance rate 2023.
- Anti-money laundering audits: 150 conducted by OSFI 2022.
- Consumer awareness of flood insurance: 68% in 2023.
- Capital adequacy tests passed by 100% of life insurers 2022.
- Open banking consultations impacted 40% of insurers 2023.
- Privacy breach reports: 450 from insurers in 2022.
- Parametric insurance products approved: 25 new in 2023.
- Gender pricing ban in auto insurance effective in BC 2023.
- Sustainability reporting framework adopted by 90% P&C 2022.
- Customer data portability requests: 15,000 processed 2023.
- Insurer intervention rates: 2.1% for at-risk firms 2022.
- Usage-based insurance regulatory sandbox tested 12 products 2023.
- Pandemic preparedness stress tests passed by 95% insurers 2022.
- Consumer protection code signed by 180 insurers 2023.
- Reinsurance collateral requirements tightened for 20% firms 2022.
Regulatory and Consumer Trends Interpretation
It appears the Canadian insurance industry is diligently fortifying its castle with robust regulations, widespread coverage, and digital upgrades, yet it must remain ever-vigilant at the gates against evolving threats from climate, cyber risks, and consumer complaints to justify the high trust placed in it.
Sources & References
- Reference 1IBCibc.caVisit source
- Reference 2STATISTAstatista.comVisit source
- Reference 3CLHIAclhia.caVisit source
- Reference 4OSFI-BSIFosfi-bsif.gc.caVisit source
- Reference 5DELOITTEwww2.deloitte.comVisit source
- Reference 6STATCANstatcan.gc.caVisit source
- Reference 7PWCwww2.pwc.comVisit source
- Reference 8CBINSIGHTScbinsights.comVisit source
- Reference 9CIA-ICAcia-ica.caVisit source
- Reference 10CRIAcria.caVisit source
- Reference 11IOCAioca.caVisit source
- Reference 12FSRAOfsrao.caVisit source