Issue link: http://clhia.uberflip.com/i/563156
21 Life and health insurance providers receive funds from two main sources: premiums and deposits paid by policyholders and earnings on investments. The portion of premium payments not used to pay benefits or expenses in the current year becomes available for investment in the nation's economy until needed to pay future benefits. In product pricing, the anticipated investment earnings are taken into account, thereby reducing the cost of life insurance, health insurance and annuities to policyholders. Total premium income The total premium income in Canada for life and health insurance providers during 2014 was $99.4 billion, including deposits to segregated fund products and premium equivalents for uninsured contracts administered by life insurance companies and not-for-profit health care benefit providers such as provincial Blue Cross organizations. Of this amount, 43 per cent was from annuities, 39 per cent was from health and disability products, and 18 per cent from life insurance policies. The 2004 distribution was 40 per cent, 39 per cent and 21 per cent, respectively. In 2014, group contracts produced 67 per cent of the total premiums, up from 63 per cent 10 years ago. Premium Income Total Premium Income in Canada (millions) Year Life Insurance Annuities Health Benefit Plans Total Individual Group Individual Group Individual Group Group (Insured) (Uninsured*) 1960 $ 660 $ 109 $ 33 $ 151 $ 40 $ 151 $ — $ 1,144 1970 1,128 325 126 311 85 315 — 2,290 1980 2,318 952 1,762 1,465 221 1,602 49 8,369 1990 4,840 1,879 7,299 4,554 670 4,338 1,751 25,331 2000 8,737 2,542 13,297 10,185 1,638 9,185 6,496 52,080 2005 10,332 3,273 13,155 14,419 2,387 13,666 9,631 66,863 2006 10,769 3,363 13,733 15,680 2,631 14,158 10,475 70,809 2007 11,109 3,478 16,390 18,006 2,753 15,134 11,277 78,147 2008 11,559 3,571 16,868 17,947 2,926 16,215 11,886 80,972 2009 11,752 3,646 17,198 19,307 3,018 16,577 12,400 83,898 2010 11,980 3,707 17,022 19,504 3,152 17,255 12,678 85,298 2011 11,969 3,885 15,353 20,524 3,319 17,974 13,057 86,081 2012 12,554 4,009 14,044 22,054 3,285 19,297 13,428 88,671 2013 13,028 4,215 12,730 24,617 3,685 20,284 13,675 92,234 2014 13,838 4,275 14,606 27,921 3,858 20,586 14,287 99,371 Sources: OSFI, CLHIA Premium deposits to segregated funds are included Premiums are reported on a net of reinsurance basis Figures since 2000 report on the business of insurance companies (life and property and casualty), fraternal benefit societies, and not-for-profit health care benefit providers such as provincial Blue Cross organizations. Earlier years include data for insurance companies only Since 2011, premiums exclude amounts deposited under Investment and Service contracts (reclassified from Insurance contracts under IFRS), which totalled over $1.1 billion in 2014 *Premium equivalents (benefit payments + administration fees) for uninsured contracts administered by life and health insurance providers