An additional $ 150 million in disability claims was paid in 2020 above forecast to support recovering workers.
“The crisis has tested and demonstrated the resilience of the life and health insurance industry and the importance of our products to the well-being of Canadians,” said Stephen Frank, President and CEO. management of ACCAP, in the report.
He noted the response of insurers to the pandemic, including measures such as premium reductions and deferrals, and investments in online access to benefits.
As a result of these measures, “more than 26 million Canadians ended 2020 with access to medications and other health care supports, which is roughly the same number of Canadians who were covered in the start of the year, ”Frank said.
Overall, insurers paid out $ 14.3 billion in life insurance benefits in 2020, $ 36.6 billion in health insurance benefits and $ 46.2 billion in retirement benefits, according to The report. A total of around $ 97 billion, up from a record $ 103 billion in 2019, when $ 53.3 billion was paid out in retirement benefits.
Total benefits paid for life, health and retirement have increased by more than 40% from a decade ago, according to the report. In 2019, that figure was 60%.
Premium growth is up slightly. Life and health insurers collected $ 123 billion in premium income last year (including $ 3.7 billion from foreign branches operating in Canada), according to the report, up from $ 122 billion in 2019.
Life insurance premiums contributed to the increase, up 3.3%, followed by annuities (including segregated funds), up 1.9%. Health insurance premiums fell 2%.
Individual life insurance coverage continued to grow, accounting for 64% of total policies in force, up from 56% in 2010, according to the report. The increase is mainly attributable to term insurance.
The average life insurance coverage per household in Canada was $ 442,000 in 2020, up from $ 432,000 in 2019.
For more details, including insurers’ investment assets and tax contributions, read ACCAP 2021 Report.