Canadians relied more than ever on life and health benefits last year
Canada’s life and health insurers paid a record $143.3 billion in insurance benefits and retirement solutions in 2024, the Canadian Life and Health Insurance Association (CLHIA) said Tuesday.
The figure marks an increase of nearly 12% from the previous year and amounts to about $400 million paid out to Canadians each day, according to CLHIA’s annual Canadian Life & Health Insurance Facts report.
“At a time when our country is facing economic uncertainty and our healthcare system is under strain, life and health insurers continue to be there for Canadians,” said Stephen Frank, CLHIA president and CEO. “By offering benefits that go above and beyond what the public system can offer, insurers have an important role in supporting Canadians.”
The report highlighted that nearly 30 million had financial protection through life and health insurers in 2024. This included:
- 23 million Canadians with life insurance coverage worth a total of $6 trillion.
- 27 million Canadians with supplementary health coverage.
- 10 million Canadians with retirement savings managed by insurers
Insurers paid $53.3 billion in health claims, up from $48.2 billion in 2023. Prescription drug claims accounted for the largest share at $16.6 billion. Paramedical services, including mental health counselling and massage therapy, grew the fastest, climbing 16% over the year.
Source: CLHIA
Life insurance benefits reached $18.6 billion in 2024, including $8.9 billion in death benefits and $9.7 billion in payments to living policyholders through disability benefits, cash surrenders, or dividends.
Retirement benefits represented the largest payout category, with $71.4 billion distributed. These included annuity payments on employer-sponsored and individual products, which CLHIA said have nearly doubled in the past decade.
The sector also made a wider impact on the economy, employing more than 180,000 Canadians and contributing $12.1 billion in taxes. Insurers hold over $1 trillion in long-term investments, including $50 billion in domestic infrastructure assets.
“As the federal government looks to unlock more investments for nation-building projects, Canada’s life and health insurers are ready-and-willing partners,” Frank said.
Other highlights from 2024 included:
- $71.4 billion paid in retirement benefits from annuities.
- $53.3 billion in health benefits.
- $18.6 billion in life insurance benefits.
- $10 billion in disability benefits, supporting 12 million Canadians unable to work.
- $16.6 billion in prescription drug claims, up from $15.3 billion in 2023.
CLHIA represents companies that make up 99% of Canada’s life and health insurance business, covering nearly 30 million Canadians.
