What is the outlook for Canada’s insurance market?
What is the outlook for Canada’s insurance market? | Insurance Business Canada
Life & Health
What is the outlook for Canada’s insurance market?
‘Conditions are ripe’ for expansion
Life & Health
By
Jonalyn Cueto
The Canadian insurance landscape is set for a significant expansion, with a report indicating robust growth in both the life and non-life insurance sectors.
According to new projections from ResearchAndMarkets.com, the market size will rise from US$99.4 billion (CAN$133.7 billion) in 2024 to US$140.6 billion by 2029, representing a remarkable CAGR of 7.18%.
The insurance industry, which encompasses companies providing risk management through insurance contracts, is witnessing a surge in demand.
ResearchAndMarkets.com said that Canada’s population is steadily climbing, reaching an estimated 38.23 million in 2021, and the conditions are ripe for insurance sector expansion.
Pandemic-driven demand
The COVID-19 pandemic in Canada has spurred a notable shift in priorities, according to the website’s report.
With the death rate per 100,000 individuals hitting unprecedented levels, reaching 808.5 per million, attention has pivoted towards life insurance coverage.
Escalating healthcare expenses have underscored the importance of comprehensive coverage, prompting individuals to explore life insurance options.
Moreover, Canada’s median income has demonstrated resilience, even amidst the pandemic, fuelling investments across various sectors, including non-life insurance.
In non-life insurance, sectors such as liability, property and casualty, and auto insurance are experiencing sustained growth in net premiums written.
In 2021 alone, net written premiums for liability, property and casualty, and auto insurance are estimated to hover around US$5.9, $49.52, and $20.06 billion, respectively.
This positive trajectory not only shows the resilience of Canada’s insurance market but also presents lucrative opportunities for businesses eyeing investments in the country’s insurance sector, according to ResearchAndMarkets.com
With the nation’s GDP per capita surging by 20.1% to US$52,015 in 2021, indicative of robust economic growth, the insurance industry stands to benefit from evolving consumer spending patterns and regulatory frameworks.
Private technology investments are poised to revolutionize the insurance landscape, while strategic partnerships between insurers and emerging tech firms further highlight the industry’s intent for digital transformation, the report noted.
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