QUEBEC BUDGET RECOGNIZES THE SIGNIFICANT CONTRIBUTION AND THE NECESSARY EVOLUTION OF THE LIFE AND HEALTH INSURANCE INDUSTRY
News ReleaseRelease Date: 03/28/2017 Staff Reference: Suzie Pellerin
Québec, March 28, 2017 – The life and health insurance industry is pleased that the Minister of Finance has recognized the industry’s contribution of $5.5 billion to the GDP. “This is perfect timing; the budget announces the upcoming review of the legislation governing insurance and financial services as well as the creation of a centre of excellence in financial technologies,” said Lyne Duhaime, President of ACCAP-Quebec. “We appreciate the government’s support of our industry in order to support our evolution so that we can better meet the needs of consumers.”
In addition, the Civil Code of Québec will be amended to include a partial prohibition on the surrender of life insurance policies for speculative purposes. “We will fully cooperate so that this type of activity may at last be restricted. If nothing is done, Quebec would become a safe haven for a market that targets the sick and the vulnerable.” For some time now, the Association has been expressing concern around issues related to the purchase of life insurance policies by third parties.
Our industry also applauds the government's decision to continue to invest in infrastructure. “We are pleased to continue participating in the funding of infrastructure initiatives in Quebec”, noted Ms Duhaime.
However, ACCAP-Quebec is disappointed that the compensation tax on insurance premiums will be extended for the next five years. The current rate for this tax was to be reduced after March 31, 2017, and the tax abolished altogether on March 31, 2019. Instead, the compensation tax rate will remain at its current level until March 31, 2022.
About the CLHIA
Established in 1894, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada’s life and health insurance business. The industry provides a wide range of financial security products such as life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance to 28 million Canadians. It also holds close to $760 billion of assets in Canada and employs about 150,000 Canadians.
For more information please contact:
Suzie Pellerin, Assistant Vice President, Public Affairs and Government Relations (Quebec)
Office : 514-375-5076 -- Cell : 514-235-3766