How big an impact is the insurance sector making in Alberta?

How big an impact is the insurance sector making in Alberta? | Insurance Business Canada

Insurance News

How big an impact is the insurance sector making in Alberta?

Important role as “financial first responders” highlighted

Insurance News

By
Terry Gangcuangco

Just how much is the property & casualty insurance industry contributing to Alberta’s economy? A new report by the Insurance Bureau of Canada (IBC) has quantified the sector’s impact on the province.

According to the latest Alberta InsurEconomy report, the P&C insurance industry was a significant contributor to the province’s gross domestic product (GDP) in 2022, adding $2 billion directly to GDP. Taking into account indirect supply chain purchases and the induced impact of re-spending, the sector’s total economic impact would equate to nearly $4 billion.

The sector is also a key employer in Alberta, providing direct employment to 17,000 residents, with women representing 60% of this workforce. Additionally, the employment impact extends beyond direct hires, with every 100 jobs indirectly generating another 94 ones – translating to approximately 32,000 Albertans finding employment across various fields, including auto repair.

Tax contributions from the P&C insurance industry have also been substantial, with over $680 million forming part of Alberta’s tax revenue in 2022. Moreover, approximately $22 billion was invested by the sector in provincial, municipal, public authority, and school bonds, with a further $17 billion poured into federal government bonds.

The report also cast insurers in the role of “financial first responders,” highlighting their importance in protecting consumers from financial losses and injecting capital into the economy. According to IBC, the industry supported $6.3 billion in claims from policyholders in 2022, with auto insurance claims accounting for $2.9 billion of the total.

Overall, the Alberta InsurEconomy report emphasized the P&C insurance industry’s extensive contributions beyond the realm of risk management.

“Alberta’s insurance industry does a lot more than help people and businesses manage risk; it is a vital contributor to the province’s economic resilience,” IBC said. “This role extends far beyond policies and premiums – insurers are steadfast partners in promoting financial stability, managing recovery, and supporting economic growth and jobs.”

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