The Canadian Life and Health Insurance Association (CLHIA) has updated its annual Canadian Life and Health Insurance Facts, publishing the annual report October 20. In it, the association notes that the industry’s payout of life, health and retirement benefits in 2025 was up 10 per cent over the previous year’s figures, coming in at $157 billion.
Broken down, Canadians received $83.8 billion in benefits through retirement and savings plans, $18.3 billion in life insurance benefits and $54.7 billion for disability, supplementary health, accident and other benefits.
The annual report, produced annually since 1955, is generally used by governments, policymakers, researchers and the CLHIA’s members seeking data on the industry more broadly.
“I think what really stands out is the scale,” Stephen Frank, president and CEO of the CLHIA told the Insurance Portal in an email exchange. “In 2025, insurers held nearly $1.3 trillion in assets here in Canada and provided Canadians with $157 billion in life, health and retirement benefits. Those numbers really show the important role the industry plays in Canadians’ lives and in the broader economy.”
In Canada, 68 per cent of insurance is sold as group insurance while 32 per cent of policies are individual policies providing coverage for one person or family.
Prescription drug coverage
The CLHIA notes that prescription drug coverage remained the largest component of health benefits, with insurers providing more than $18 billion in drug coverage in 2025. They say this us up 44 per cent over five years. The industry also provided nearly $1.1 billion in mental health support. The mental health figure is a 160 per cent increase over the past five years.
The report on the CLHIA’s 66 member companies (these represent 99 per cent of Canada’s life and health insurance business, according to the report) also notes that total benefits paid for life, health and retirement have increased 86 per cent over a decade ago.
Total premiums and annuity contributions collected by the industry increased $15 billion to $183 billion in 2025. “This was led by annuities, including segregated funds, up 10.5 per cent; life insurance, up 10.4 per cent; followed by health insurance, up 6.5 per cent,” the report states.
The report also examines the industry’s efforts to mitigate the impact of high-cost drug inflation and fraud.
Institutional investment
In its announcement, the CLHIA also highlights the industry’s role as an institutional investor, noting that Canadian life and health insurers held nearly $1.3 trillion in assets in Canada and an additional $1.6 trillion globally.
Of this, $51 billion is invested in Canadian infrastructure, a figure with potential to grow, given Canada’s current focus on infrastructure projects. “As Canada’s need for investment continues to grow, the industry remains well positioned to provide the long-term capital needed to support that growth,” Frank adds. “The key is bringing forward more well-structured, investible projects that can attract private capital.”
In 2025, Canadian life and health insurers’ total capital ratio was 136 per cent.
