Canada's life and health insurers paid a record $143.3 billion in benefits and retirement solutions last year, up nearly 12% from 2023, as the sector deepened its role in supporting both the health and financial security of Canadians.
The Canadian Life and Health Insurance Association (CLHIA) said the industry’s payouts averaged about $400 million a day. The figures were released in the association’s annual Canadian Life & Health Insurance Facts report.
CLHIA president and CEO Stephen Frank noted that insurers continue to support Canadians at a time of economic uncertainty and mounting pressure on the healthcare system. He said the industry plays an important role in offering benefits that go beyond what the public system can provide.
Health coverage remained a cornerstone of the industry, protecting 27 million Canadians. Insurers paid $53.3 billion in health claims in 2024, up from $48.2 billion the year before. Meanwhile, prescription drug costs continued to dominate at $16.6 billion, but the sharpest growth came from paramedical services, including mental health counselling and massage therapy, where claims rose 16%.
Life and health insurers also delivered $71.4 billion in retirement benefits from annuities, $18.6 billion in life insurance benefits, and $10 billion in disability benefits that supported 12 million Canadians unable to work.
The report highlighted the sector’s wider economic footprint as well. Life and health insurers employ more than 180,000 people, contribute $12.1 billion in taxes, and hold more than $1 trillion in long-term investments, including $50 billion in domestic infrastructure projects. This is an area where the federal government is seeking greater private-sector participation.
Frank added that Canada’s life and health insurers are well-positioned to partner with the government on nation-building initiatives, given the scale of their capital and long-term investment strategies.
The scale of Canada’s payouts aligned with global trends. In the US, life insurers paid out more than US$800 billion in benefits in 2023, while European markets have also seen steady growth in claims, particularly in health and retirement solutions. Though smaller in absolute terms, Canada’s market remains significant given its population size, with per capita payouts among the highest in the world.
With record payouts, rising demand for health benefits, and growing influence as institutional investors, the industry’s dual role in household resilience and national economic growth appears stronger than ever.
