Life & health sector sets record with $114 billion payout for 2022
Life & health sector sets record with $114 billion payout for 2022 | Insurance Business Canada
Insurance News
Life & health sector sets record with $114 billion payout for 2022
Record-breaking sum paid out to millions of Canadians, according to report
Insurance News
By
Mika Pangilinan
Canada’s life and health insurers paid out a record-breaking sum of $114 billion in benefits last year, according to a new report from the Canadian Life and Health Insurance Association (CLHIA).
The sum marks a 10% increase compared to 2019 figures, CLHIA noted, with Canadians receiving benefits from life and health insurance products averaging more than $312 million a day.
The report also indicated that life and health insurers covered over 29 million individuals in 2022, representing 74% of the country’s population.
“During a year when many households faced higher prices and tough choices, over 29 million enjoyed the added financial protection that these products offer,” said CLHIA president and CEO Stephen Frank.
“These families had prescriptions that were more accessible, retirement that was more secure, and greater certainty that financial support would be available for their loved ones.”
According to CLHIA, insurers paid $43.9 billion in claims for supplementary health, disability, and accident coverage. They also paid $14.3 billion for prescription drug claims and $650 million for mental health support claims.
The number of Canadians covered by health insurance also surpassed 27 million for the first time.
The milestone was primarily driven by increased employment following the pandemic, CLHIA said, with an additional 600,000 individuals enrolling in workplace health plans last year.
As for life insurance, the report found that 22 million Canadians had coverage in 2022, while life claims increased by around 12%.
CLHIA also found that insurers provided retirement solutions to over nine million Canadians, paying over $53 billion in retirement benefits.
Beyond serving Canadians, life and health insurers extended their reach to provide insurance products to over 100 million people worldwide.
The Canadian Life and Health Insurance Facts publication is released annually by CLHIA, featuring industry and publicly available data. The 2023 edition also provided insights on employment patterns within the life and health sector, as insurers employed over 170,000 Canadians last year.
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