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24 C anadians buy their life insurance, annuities and health insurance in a highly competitive international marketplace, served not only by Canadian companies but also by companies from the United States, Britain and other European countries that service the market through branch offices and Canadian subsidiaries. In turn, a number of Canadian life and health insurers have been operating successfully in the United States, Asia, Europe and other parts of the world for many years (see page 25). Canadian and foreign companies Of the $92.2 billion of life and health insurance premiums and annuity considerations paid by Canadian policyholders during 2013, 88 per cent went to domestic or Canadian- incorporated companies. The remainder went to the branches of foreign life insurance companies and fraternal benefit societies operating in Canada (1.2 per cent to American companies and 10.6 per cent to British and European companies). Since 2003, the market share of total industry premiums (and premium equivalents) for Canadian-incorporated firms has remained fairly level at 88 to 90 per cent, based on their registration or nationality. Over the same period, the market share of total premiums for Canadian-owned firms has hovered around 78 to 80 per cent. Nationality of life insurers There are 99 active life insurers in Canada, including 86 life insurance companies and 13 fraternal benefit societies: 67 Canadian-incorporated, 26 U.S., 1 British and 5 from continental Europe. Of the 99 insurers, 80 are registered under federal laws and 19 are provincial. Ten years ago, there were 129 life insurers active in the Canadian market, including 108 life insurance companies and 21 fraternals. Federally registered companies received over 80 per cent of the total industry premiums and premium equivalents for all lines of business. Life insurance companies accounted for the vast majority of the business. Type and nationality of health insurers The 129 companies active in the supplementary health insurance field include: 65 life insurance companies, 48 property and casualty insurers, 8 fraternal benefit societies and 8 not-for profit health care benefit providers (e.g., provincial Blue Cross organizations). Of the total, 96 are Canadian-incorporated, 25 are from the United States, and 8 are from Britain, Europe or elsewhere. In 2013, 93 were registered under federal laws and 36 were provincially incorporated. Although life insurance companies and not-for-profit health care benefit providers sold 98 per cent of these products, property and casualty companies and fraternal benefit societies were also active in this field during 2013. Personnel of life and health insurers At the end of 2013, 150,100 people were working in the life and health insurance business in Canada: 66,400 full-time employees and agents, and 83,700 independent agents earning at least part of their income from the life and health insurance industry. Of the full-time personnel, 50,400 were engaged in administrative work: 39,600 in company head offices and 10,800 in branch offices across Canada. The remaining 16,000 full-time employees were in sales, including 13,100 agents working exclusively for one insurer and 2,900 supervisory personnel. Company Operations in Canada ❖◆◆ At the end of 2013, 86 active life insurance companies and 13 fraternal benefit societies were operating in Canada. ❖◆◆ Health insurance protection was provided to Canadians by 65 life insurance companies, 48 property and casualty insurers, 8 fraternal benefit societies, and 8 not-for-profit health care benefit providers. ❖◆◆ Working in the life and health insurance industry were 150,100 Canadians. Life Insurance Health Insurance Life insurance companies 86 65 Fraternal benefit societies 13 8 Not-for-profit health care benefit providers* – 8 Property and casualty insurers – 48 Total 99 129 *Includes provincial Blue Cross organisations, etc. Life and Health Insurance Providers in Canada By Type of Company