Even though the Covid-19 pandemic lost some of its impact on everyday life last year, Canadian life and health insurers set another record for claims paid.
Insurers paid out $114 billion in life and health benefits in 2022, slightly more than the previous record set in 2021 and $11 billion more than before the pandemic, the Canadian Life and Health Insurance Association (CLHIA) said Tuesday. annual statistical report.
Nearly half ($53.7 billion) of benefits paid were lifetime claims, down from $58.1 billion in 2021, while health insurance benefits set a new record of $43.9 billion. The $650 million in claims for mental health support was a 10% increase from the previous year and almost double the 2019 total.
Life insurance benefits increased to $16 billion last year from $14 billion in 2021. CLHIA reports that 22 million Canadians have $5.5 trillion worth of life insurance, and the total amount insured has “steadily” increased over the past decade. “The increase may be due to individuals having to cover larger mortgages and higher living costs,” the report said.
Individual life insurance represented 65% of total life insurance policies in force, up from 58% in 2012. The growth was driven primarily by term insurance, which accounted for 40% of all life insurance.
Total premiums collected by insurers in 2022 rose to $145 billion, up from $139 billion the previous year. The increase was driven by health insurance premiums (up 9.4% to $55.9 billion) and life insurance premiums (5.5% to $27 billion), while annuity and segregated fund premiums remained the same, according to the report. essentially unchanged (up 0.2% to $62.2 billion). ).
The deferred sales charge (DSC) structure in segregated funds has been banned this year to bring it in line with the DSC ban on mutual funds introduced in June last year.
Insurance regulators are also developing guidelines on upfront commissions for distributed funds following consultations that have identified a risk of harm to the customer.
