How big of an impact does the P&C insurance sector have on Canada's economy?

How big of an impact does the P&C insurance sector have on Canada’s economy? | Insurance Business Canada

Insurance News

How big of an impact does the P&C insurance sector have on Canada’s economy?

New report shines spotlight on industry’s contributions

Insurance News

By
Terry Gangcuangco

The Insurance Bureau of Canada (IBC) has published its InsurEconomy 2024 report, detailing the significant contributions of the property and casualty insurance sector to job creation and economic growth nationwide.

According to IBC, the P&C insurance industry adds $38 billion to Canada’s nominal gross domestic product (GDP); generates approximately 297,000 jobs; and pays over $12 billion annually in federal and provincial taxes and levies.

The sector also supports the economy by investing in government bonds, holding nearly $39 billion in various government bonds in 2022. It also promotes gender equality, with the percentage of women employed by the industry (60%) surpassing the national average of 48% in 2021.

Meanwhile provincial reports for Alberta, Ontario, New Brunswick, and Nova Scotia were also released.

Celyeste Power (pictured), IBC president and chief executive, commented: “Canada’s P&C insurance industry is foundational to the strength, success, and resilience of the economy. Our member insurers are there for their customers after a disaster, helping individuals and families put their lives back together.

The InsurEconomy 2024 report features the latest data from Statistics Canada, MSA Research, and IBC, detailing the direct, indirect, and induced impacts on GDP and employment by the P&C insurance industry.

The report also outlines key public policy priorities for Canadian insurers, such as addressing the auto theft crisis and advocating for a cost-effective national flood insurance program for high-risk properties.

“Canada’s P&C insurance industry is proud of our role in helping people manage risk and in fuelling prosperity across the country,” Power said. “Key to that role is working in partnership with governments and other stakeholders to address evolving risks and find solutions that help Canadians become more resilient.

“Our ongoing work with the federal government on a national flood insurance program, and our advocacy with respect to public policy solutions to tackle the auto theft crisis, are just some of the ways we continue to show Canadians that we are there to protect them from the risks of today and tomorrow.”

What do you think about this story? Share your thoughts in the comments below.