Canada Insurance Industry

Canadian Life and Health Insurance

The life and health insurance industry turned in an impressive performance for the year 2003. Industry assets in Canada increased by 12.7 per cent to reach $314.9 billion by the end of 2003: $213.9 billion in general funds (up 11.1 per cent) and $101 billion in segregated funds (up 16.2 per cent, reflecting the improvement in capital markets). Total premiums and premium equivalents (all lines of business) rose 4.1 per cent to $52.7 billion. The growth in premiums for life insurance (up 4.9 per cent to over $12.5 billion) and health and disability products (up 6.2 per cent to $19.2 billion) outpaced the recovering annuity market (up 1.9 per cent to $20.9 billion after the 2.5 per cent decline of the previous year).

Life Insurance Ownership in Canada

By year-end 2003,Canadians owned

Individual Life Insurance$1.318 billion Group Life Insurance$1.166 billion Total Life Insurance$ 2.484 billion

• About 17.5 million Canadians own life insurance for the future financial security of their dependants.
• Average amount owned by insured individuals was $142,200.

Life Insurance Purchases in Canada

During 2003, Canadians purchased

Year200020012002 Net written Premiums- AutomobilesUS $ 2.4BillionUS $ 2.5Billion US $ 2.8 Billion

• About 847,900 individual policies were purchased.
• Average size of new individual policies was $197,600.

Health Insurance Coverage in Canada

At December 31, 2003, insured and uninsured health benefit plans provided protection against financial loss for millions of Canadians.

Disability Income 9.2 million people Extended Health Care 26.5 million people Dental care 17.9 million people
Foreign Operations of Canadian Life and Health Insurers

In 2003, foreign branch and subsidiary operations of Canadian life and health insurers accounted for:

• Life insurance ownership of $1,861 billion
• Premiums of $54.6 billion, or 54 per cent of their worldwide total
• Benefit payments of $40.8 billion
• Assets of $296.4 billion, or 51 per cent of their worldwide total

Property insurance in Canada provides protection for losses to buildings and contents. A number of related types of protection are often purchased together with property Insurance; these include personal liability for homeowners and tenants, business interruption insurance and temporary accommodation costs.

Liability insurance (excluding auto) Protects the purchaser for legal liability to others for injury, death or damage to property that may arise in the course of carrying out occupational or personal activities. It includes product liability, which compensates consumers for injury suffered in the use of goods or services.

Property and casualty insurance in Canada (P&C or “general”) insurance industry in Canada provides insurance protection for most homes, motor vehicles and commercial enterprises throughout the country. At least 206 private P&C insurance companies actively compete in Canada. In addition, the compulsory component of auto insurance is provided exclusively by Government-owned auto insurers in British Columbia, Manitoba and Saskatchewan.

The year 2004 is considered as a significant year for the property and casualty insurance industry in Canada, with marking the 200th anniversary of the opening of the country ‘s first general insurance company.

Special Types of P&C Insurance

Fidelity insurance or fidelity bonds are purchased by organizations to protect them against the dishonest acts of their employees.

Marine and aircraft insurance includes protection for losses to vessels, cargo, and Liability to passengers.

Boiler and machinery insurance protects companies from losses resulting from faulty or malfunctioning machinery, including damage to the insured equipment, as well as surrounding buildings and equipment.