Yahoo Finance Life and health insurers paid a record $128 billion in benefits in 2023, helping Canadians live healthier, more affordable lives
TORONTO, Sept. 24, 2024 /CNW/ - Canada's life and health insurers paid-out a record $128 billion in benefit claims last year, money that helped keep Canadian families healthy and make their lives more affordable.
Total benefits, from health insurance and life insurance claims as well as insurance-based retirement products increased 13 per cent which represents over $350 million paid-out each day.
"The benefits that life and health insurers provide through workplace plans and individual policies contributed significantly to Canadians' health and financial security," Stephen Frank, President and CEO of the Canadian Life and Health Insurance Association said. "To put this into context, the amount insurers paid-out last year to Canadians is greater than what the federal government provided in old age benefits, child benefits and employment insurance combined."
Among the other findings in the 2024 edition of Canadian Life & Health Insurance Facts are that last year, life and health insurers:
Provided coverage for nearly 30 million – or 75 per cent of Canadians;
Paid a record $36.6 billion in claims for health, drugs and dental care – up 13 per cent from last year;
Provided nearly $10 billion in disability benefits, helping 12 million replace wages while they were unable to work;
Employed nearly 180,000 Canadians – up more than 3,000 from 2022;
Provided insurance products to nearly 120 million people worldwide.
Benefits paid in 2023 included nearly $63 billion in retirement benefits through annuities, over $48 billion in health claims and $17 billion in life insurance.
While prescription drug costs continued to account for the largest share of health benefits at $15 billion, claims for paramedical services like massage and physiotherapy led the growth of health claims in 2023. Continuing a recent trend of Canadian employers growing awareness and support for mental health, claims for counselling services continued to grow, reaching $730 million. This is more than double the amount of four years earlier.
"Insurers also did their part to contribute to Canada's economic growth with $960 billion invested in long-term assets." Frank said. "They also contributed $11 billion to the country's tax base including a staggering 80 per cent increase in corporate and federal capital taxes paid in 2023."
Canadian Life & Health Insurance Facts is published annually by the CLHIA based on industry and publicly available data. It is available at clhia.ca/facts
About the CLHIA
The CLHIA is a voluntary association whose member companies account for 99 per cent of Canada's life and health insurance business. These insurers provide a wide range of financial security products including life insurance, annuities (including TFSAs, RRSPs, RRIFs and pensions) and supplementary health insurance to nearly 30 million Canadians. They hold over $1 trillion in assets in Canada and employ almost 180,000 Canadians.
SOURCE Canadian Life and Health Insurance Association Inc.
View original content: http://www.newswire.ca/en/releases/archive/September2024/24/c6114.html
