Life and Non-Life insurance market in Canada - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Life and Non-Life insurance market in Canada - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Key Highlights

• Life and non-life insurance market in Canada is estimated to register a CAGR of approximately 3% during the forecast period.
• Insurers provide life insurance, extended health coverage, and retirement solutions through group and individual plans. In 2018, life and health insurers paid out CAD 98 billion in benefits while working to provide a high degree of customer satisfaction. Canadians own CAD 4.8 trillion in life insurance coverage, total premiums in Canada rose to CAD 117 billion in 2018. Year-over-year growth was led by health insurance, up 7.8%, followed by annuities (including segregated funds), up by 4% and life insurance, up 3.8%.
• The average life insurance protection per household in Canada is CAD 423,000 up from CAD 417,000 in 2017, approximately five times household income. In 2018 life insurance premium CAD 22.2 billion,individual life insurance in-force has grown faster than a group in the past decade, accounting for 62% of the total, up from 55% in 2008. This is mostly driven by growth in individual term life insurance.
• In 2018, Canadian insurers wrote CAD 59.6 trillion in total paid insurance premiums on homes, cars, and businesses for consumers. In 2018, Canadian P&C (property and casualty) insurers paid out CAD 39.1 trillion in claims. In 2018, 42.0 percent of the direct written premiums were for car insurance.

Key Market TrendsIncrease in GDP Per Capita:

GDP per capita is a measurement often used to determine economic growth and potential increases in productivity and is calculated by taking the GDP and dividing it by the total population in the country. In 2014, Canada had one of the largest GDP per capita values in the world, a value that has grown continuously since 2010 after experiencing a slight downturn due to the financial crisis of 2008. GDP per capita is a very important indicator of the economic strength of a country and a positive change is an indicator of economic growth. Per capita income of the country has increased in recent years and expected to continue.

Private technology investments by insurers:

The InsurTech businesses featured the previous quarter are US-based BriteCore, a cloud-based fully-managed policy administration system, US-based Risk Genius, and Canada-based ProNavigator, both of which provide services around managing policies, acquiring or populating data, and supporting intelligent navigation through insurance company systems. Sun Life has formed a strategic partnership with rising People, an HR, payroll, and benefits administration solution tool. The integrated solution, which will offer consumers a single health and wellness platform, will be rolled out to small to mid-sized employers across Canada in early 2019.

Competitive Landscape

The report covers the major players operating in the life and non-life insurance market in Canada. The market is consolidated, the market is expected to grow in the forecast period due to private technology investments by insurers and recover in the GDP per capita and other few factors.

Additional Benefits:

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

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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