Coverage reaches nearly 30 million Canadians as industry sees double-digit surge in claims and contributions
Canada’s life and health insurance sector delivered a record-breaking $128 billion in benefits in 2023, marking a 13% increase from the previous year, as more Canadians than ever relied on insurance to manage rising healthcare costs and secure retirement incomes.
According to the Canadian Life and Health Insurance Association’s (CLHIA) 2024 industry factbook, the country’s 150 insurers now collectively provide financial protection to nearly 30 million people—representing approximately 75% of the population. The sharp uptick in benefits paid underscores the sector’s pivotal role in supplementing public healthcare, offering retirement income, and helping families cope with life’s most challenging moments.
Record Growth in Benefits Across All Lines
In 2023 alone, insurers paid out:
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$48.2 billion in health-related benefits, including prescription drugs, dental care, and mental health services
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$62.7 billion in retirement benefits, primarily through annuities and group plans
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$17.3 billion in life insurance claims
The growing cost of paramedical services, especially physiotherapy and massage therapy, drove a notable portion of the increase in health benefit payouts. Mental health support claims more than doubled from 2019, reaching $730 million—highlighting the increasing recognition of mental wellness in benefit plans.
Supplementing Public Systems and Securing Futures
Health insurance, which covers expenses not included under provincial healthcare plans, now supports 27 million Canadians. Group insurance plans—largely offered by employers—account for 91% of this coverage. Meanwhile, life insurance reaches 23 million Canadians, with total coverage valued at $5.7 trillion. The average insured household now holds $483,000 in life insurance protection, a figure that closely tracks with rising household incomes and liabilities.
Retirement solutions are also a major pillar of the industry. Nearly 10 million Canadians depend on insurers to manage their long-term savings, including RRSPs, TFSAs, and pensions. Notably, 85% of small businesses offering retirement plans do so through insurance providers. Total retirement assets under management have grown consistently for a decade, with over 80% now in accumulation annuities.
Driving Economic Growth Through Investment and Employment
Beyond payouts, the insurance industry continues to serve as a key economic engine. Insurers invested over $960 billion in long-term assets in 2023, including infrastructure and government bonds—investments that help reduce insurance costs for policyholders while supporting national development.
The industry employed nearly 180,000 Canadians, and contributed $11.2 billion in taxes at federal and provincial levels, including a notable 80% surge in corporate and capital tax payments. Nearly half of these tax contributions were premium-based, highlighting the financial weight the sector bears in supporting public revenues.
Combatting Fraud and Enhancing Sustainability
With the growing complexity of healthcare claims, insurers have ramped up anti-fraud efforts. Over 12 million Canadians have been reached through national awareness campaigns. Artificial intelligence is now being deployed to detect fraud patterns across 55 million analyzed claims. The industry has also introduced shared fraud-mitigation tools, such as centralized provider registries and pooled investigation resources.
A Global Footprint with Domestic Roots
Canadian insurers are not just local players. They provide coverage to 90 million people across 20 countries and manage $1.4 trillion in assets abroad. International operations accounted for 44% of insurance service revenues in 2023, reinforcing the global competitiveness of Canadian firms. Three domestic companies rank among the world’s 15 largest life and health insurers.
Outlook: Affordability, Security, and Innovation
As households continue to grapple with economic pressures, the CLHIA emphasized the importance of insurance products in promoting affordability, financial security, and health resilience. President and CEO Stephen Frank noted that insurance-based solutions are “helping to make life more affordable for millions” and are increasingly indispensable in managing everything from drug costs to retirement planning.
