The Canadian Life & Health Insurance Association (CLHIA) is continuing its lobbying efforts to bring awareness of the industry’s issues to provincial and federal government officials who are preparing their respective budgets for 2023.

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In two of their most recent submissions, this time to Manitoba and New Brunswick finance ministries, the CLHIA echoes earlier calls to other governments to support dental care reforms that preserve existing workplace and individual health benefits plans, to allow automatic pension enrollment features and continued consumer access to virtual health care services. 

The submissions also call for the government to permit standalone Variable Payment Life Annuities (VPLAs) and they encourage governments to see the insurance industry as a viable investment partner for long-term infrastructure projects.

In looking at Manitoba and New Brunswick specifically, they ask both provinces to scrap their respective premium taxes.

“New Brunswick imposes a two per cent tax on life, health and disability insurance premiums. Life insurers – and consequently insured New Brunswickers – paid $22-million in premium taxes in 2021,” they write. “The premium tax is outdated – it predates corporate income taxes and imposes a supplemental tax burden more than twice the $10-million in corporate income taxes levied on life and health insurance companies in New Brunswick.” 

In Manitoba’s case life insurers paid $33-million in premium taxes in 2021, a supplemental tax burden they say is double the $15-million in corporate income taxes levied on life and health insurance companies in the province. As well, Manitoba applies a seven per cent retail sales tax to most group insurance premiums, which the CLHIA says costs employers nearly $50-million annually. “This puts Manitoba employers at a competitive disadvantage.”