Life and Non-Life Insurance Market In Canada - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Life and Non-Life Insurance Market In Canada - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The life and non-life insurance market in Canada is poised to grow at a CAGR of greater than 3.5% by 2027. The insurance sector is made up of companies offering risk management in form of insurance contracts. Life insurance companies focus on legacy planning and replacing human capital value and property or casualty insurance aims at replacing the values of homes, cars or valuables. Canada is observing continuous growth in population with around 38.23 million of the population in 2021 leading to a positive environment for the insurance industry.

With the advent of COVID-19 in Canada Death rate per 100,000 of the population reached a peak level compared to all the previous years with total death of 808.5 in a million of the population this increase in death rate focus shifted towards life insurance because of the heavy amounts been paid by people in hospitalization. Annual median Income in Canada had observed continuous growth even during the pandemic leading people to invest in different properties and creating a market for non-life insurance.

Liability Insurance, property and casualty insurance, and auto insurance every sector had observed continuous growth in net premiums written creating a positive market for other businesses to invest in Canada's life and non-life insurance market. During year 2021 Net written premium for liability, P&C and auto insurance exist at (5.9, 49.52, 20.06) Billion USD.

Key Market TrendsIncrease in GDP Per Capita is Boosting the Demand for Insurance

The GDP is divided by the nation's total population to calculate GDP per capita, a metric frequently used to gauge economic growth and potential productivity increases. The GDP of the nation increased by 20.1% from the previous year to USD 52,015 in 2021. A positive change is a sign of economic growth, and GDP per capita is a crucial indicator of a nation's economic strength. The nation's per capita income has risen recently and is forecast to keep rising. The Canadian insurance industry will grow strongly on the back of robust GDP growth and evolving regulations.

Private Technology Investments are Anticipated to Surge the Market

The US-based BriteCore cloud-based fully-managed policy administration system, the US-based Risk Genius, and the Canada-based ProNavigator are the InsurTech companies profiled in the previous quarter. Both of these companies offer services related to managing policies, acquiring or populating data, and facilitating intelligent navigation through insurance company systems. Rising People, a tool for HR, payroll, and benefits administration, and Sun Life have partnered strategically.

By Canada's Budget Plan 2021, USD 7.2 billion over the following seven years for the Strategic Innovation Fund will promote investment in the life sciences, automotive, aerospace, and agricultural sectors (part of this funding will be allocated to the Net Zero Accelerator), and USD 443.8 million over ten years for the Pan-Canadian Artificial Intelligence Strategy will support the commercialization of AI, encourage research, and promote the development of standards related to artificial intelligence.

Competitive Landscape

The report covers the major players operating in the life and non-life insurance market in Canada. The market is fragmented, and it is expected to grow during the forecast period, due to the adoption of insurtech increasing in the sector, along with several merger and acquisition activities and other factors. Major players such as The Manufacturers Life Insurance Company, Fédération des caisses Desjardins du Québec, Great-West Lifeco Inc., Sun Life Assurance Company of Canada, The Canada Life Assurance Company, and others have a significant share in the life and non-life insurance market in Canada.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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