Life and Health Insurance Industry Fact Sheet
The Canadian life and health insurance sector is a major component of Canada's financial services industry. The strength and soundness of the sector has received accolades from international bodies like the World Economic Forum (WEF) as well as from our own and foreign governments - this, in spite of the recent global financial crisis. Much of the credit for Canada's success throughout the crisis lies in the industry's prudent management of financial assets and in an effective risk- and principles-based regulatory system. Underpinning the industry's robust financial position are a range of assets and other investments. These secure financial holdings and investments ensure that Canadian life and health insurers' obligations to policyholders will continue to be met. In that regard, the following outlines the industry's financial holdings and investments:
Assets: The life and health insurance sector currently holds over $411 billion in assets on behalf of Canadian policyholders and annuitants. It manages these assets through prudent investment strategies and a diligent underwriting process. This pool of capital provides one of the country's most important sources of long-term investment capital. Further, at the end of 2008, Canadian life and health insurers held a surplus of more than $47 billion in Canada, which represents assets above and beyond what is required to pay expected claims.
Investments: Canadian life and health insurers have a long history of financial strength. The financial condition and capital adequacy of life insurers are subject to stringent regulatory supervision that requires that investments are more than sufficient to cover their obligations to policyholders, such as death claims, annuities and health care and disability income benefits.
The industry's performance over the years clearly demonstrates a prudent and long-term approach to investments, which best serves policyholders. Specifically, Canadian life and health insurers invest in:
Date Last Modified - November 24, 2009
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