How Canadian life and health insurers play a pivotal role in alleviating financial pressures on families
In 2022, Canadian life and health insurers played a pivotal role in alleviating financial pressures on families by disbursing an astounding $312 million daily in benefits.
Canadians received $114 billion in payouts from life and health insurance products, marking a 10% increase from the figures recorded in 2019. These payouts included health insurance claims, life insurance, and insurance-based retirement products.
In the 2023 edition of Canadian Life & Health Insurance Facts, data from 2022 reveals significant milestones achieved by life and health insurers.
Insurers extended coverage to 29 million individuals, around 74% of the Canadian population, with an increase of nearly 2 million beneficiaries compared to the past decade. Furthermore, they set new records by disbursing $43.9 billion in claims, covering supplementary health, disability, and accident insurance, reaching an 8% increase.
In addition, payouts for prescription drug claims also saw an 8% increase, amounting to $14.3 billion. Mental health support claims witnessed a 10% rise, reaching a total of $650 million, nearly doubling the figures from 2019.
The number of Canadians covered by health insurance also exceeded 27 million for the first time, an increase that can be attributed to the rise in employment opportunities following the challenges posed by the pandemic, resulting in an additional 600,000 individuals enrolling in workplace health plans in 2022.
Stephen Frank, president and CEO of the Canadian Life and Health Insurance Association, emphasized the importance of these insurance products in supporting Canadian households during a period marked by rising costs and difficult financial decisions.
“During a year when many households faced higher prices and tough choices, over 29 million enjoyed the added financial protection that these products offer,” Frank said.
“These families had prescriptions that were more accessible, retirement that was more secure and greater certainty that financial support would be available for their loved ones.”
Furthermore, the report found that 22 million Canadians held life insurance coverage, with life insurance claims increasing by approximately 12%. Insurers also played a crucial role in providing retirement solutions to more than nine million Canadians, resulting in payouts exceeding $53 billion in retirement benefits.
