Today, Insurance Bureau of Canada (IBC) released its InsurEconomy 2024 report, which highlights the substantial impact that the property and casualty (P&C) insurance industry has nationally in supporting jobs and contributing to economic growth.
“Canada’s P&C insurance industry is foundational to the strength, success and resilience of the economy,” said Celyeste Power, President and CEO, IBC. “Our member insurers are there for their customers after a disaster, helping individuals and families put their lives back together. We all hear about the big disasters in the headlines, and the day-to-day payment of insurance claims, big and small, shows how insurers help Canadians recover. However, few people are aware of the significant impact our industry has in creating jobs and contributing to economic growth across the country.”
In addition to the national InsurEconomy 2024 report, IBC has published provincial reports for Alberta, Ontario, New Brunswick and Nova Scotia. They highlight the impact that the P&C insurance industry has in those provincial economies.
How the P&C insurance industry supports Canada’s economy:
The industry contributes $38 billion to the country’s nominal GDP.
The total number of jobs created by the P&C insurance industry is an estimated 297,000.
The industry promotes gender equality, employing a higher percentage of women (60%) in 2021 compared to the national average (48%).
P&C insurers contribute more than $12 billion annually in federal and provincial taxes and levies.
Insurers invest heavily in government bonds that support Canada’s economy. In 2022, the P&C insurance industry held almost $39 billion in federal, provincial, municipal, public authority and school bonds.
How the P&C insurance industry supports provincial economies:
In Ontario, the P&C insurance industry strengthens the economy by directly contributing $12 billion to the province's nominal GDP, creates 72,000 jobs and contributes nearly $4 billion in tax revenue.
In Alberta, the P&C insurance industry strengthens the economy by directly contributing $2 billion to the province's nominal GDP, creates 17,000 jobs and contributes nearly $680 million in tax revenue.
In New Brunswick, the P&C insurance industry strengthens the economy by directly contributing $260 million to the province's nominal GDP, creates over 3,100 jobs and contributes $156 million in tax revenue.
In Nova Scotia, the P&C insurance industry strengthens the economy by directly contributing $330 million to the province's nominal GDP, creates over 2,200 jobs and contributes nearly $209 million in tax revenue.
The InsurEconomy 2024 report provides the most recent data available from Statistics Canada, MSA Research and IBC on the P&C insurance industry’s direct, indirect and induced impacts on the gross domestic product (GDP) and employment.
In addition, the InsurEconomy 2024 report highlights some of the public policies that Canada’s insurers are advocating for, including tackling the auto theft crisis and advocating for a low-cost national flood insurance program for high-risk properties.
“Canada’s P&C insurance industry is proud of our role in helping people manage risk and in fuelling prosperity across the country,” added Power. “Key to that role is working in partnership with governments and other stakeholders to address evolving risks and find solutions that help Canadians become more resilient. Our ongoing work with the federal government on a national flood insurance program, and our advocacy with respect to public policy solutions to tackle the auto theft crisis, are just some of the ways we continue to show Canadians that we are there to protect them from the risks of today and tomorrow.”
