Canadian life and health insurers paid out a record $128 billion in benefits in 2023, the Canadian Life and Health Insurance Association (CLHIA) said on Tuesday. annual statistical report.
The report shows that the total number is up 13% compared to the previous record set in 2022 and 68% compared to a decade ago.
Total life insurance claims were $17 billion, up from $16 billion in 2022.
CLHIA reports that 23 million Canadians have life insurance worth $5.7 trillion, and the total amount insured has continued to grow over the past decade, given the need to cover larger mortgages and higher costs of living.
The report found that average life insurance coverage per household was $483,000, up from $474,000 in 2022, which is about five times household income.
According to the report, the majority of life insurance (83% of premiums) was purchased by individuals through an agent or life advisor, with the remainder being premiums from group plans.
Additionally, according to the report, individual life insurance now accounts for 65% of the value of all policies in force – up from 58% a decade ago. This increase is mainly due to term life insurance.
Nearly $63 billion was paid in retirement benefits, up from nearly $54 billion in 2022, according to the report. Over 80% of these benefits were paid through segregated funds.
Health claims set a new record of $48 billion. The report found that prescription drug costs continue to account for the largest share of health benefits and will reach $15 billion in 2023.
The $730 million paid out in mental health claims was a 12% increase from the previous year.
Total premiums collected by insurers in 2023 rose to $157 billion, up from $145 billion a year earlier. According to the report, the increase was due to premiums for annuities and segregated funds (by 9.1%), health insurance (by 8.7%) and life insurance (by 6.4%).
