CLHIA-ACCAP

30 Canadians buy their life insurance, annuities and health insurance in a highly competitive marketplace. Not only Canadian companies participate but also companies from the United States, Britain, other European countries and elsewhere 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 32). Canadian and foreign companies Of the $99.4 billion of life and health insurance premiums and annuity considerations paid by Canadian policyholders during 2014, 89 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 9.8 per cent to other foreign companies). During the past decade, the market share of total industry premiums (and premium equivalents) held by Canadian- incorporated firms has fallen slightly to 89 per cent of the current market, down from a 91 per cent share. Over the same period, the market share of total premiums for Canadian-owned firms has followed a similar pattern, slipping from 84 per cent in 2004 to 81 per cent in 2014. Life insurers There are 97 active life insurers in Canada, including 85 life insurance companies and 12 fraternal benefit societies: 65 Canadian-incorporated, 25 U.S., 1 British and 6 from continental Europe and elsewhere. Of the 97 insurers, 78 are registered under federal laws and 19 are provincial. Ten years ago, there were 125 life insurers active in the Canadian market, including 105 life insurance companies and 20 fraternals. Federally-registered companies received nearly 81 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. Health insurers The 127 companies active in the supplementary health insurance field include: 64 life insurance companies, 47 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, 93 are Canadian-incorporated, 23 are from the United States, and 11 are from Britain, Europe and elsewhere. In 2014, 91 were registered under federal laws and 36 were provincially incorporated. Although life insurance companies and not-for-profit health care benefit providers sold 99 per cent of these products, property and casualty companies and fraternal benefit societies were also active in this field during 2014. Personnel At the end of 2014, 155,000 people were working in the life and health insurance business in Canada: 69,100 full-time employees and agents, and 85,900 independent agents earning at least part of their income from the life and health insurance industry. Canadian Marketplace Life and Health Insurance Providers in Canada By Type of Company Life Health Insurance Insurance Life insurance companies 85 64 Fraternal benefit societies 12 8 Not-for-profit health care benefit providers* – 8 Property and casualty insurers – 47 Total 97 127 *Includes provincial Blue Cross organizations, etc.

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