Canadian insurers paid out $113 billion in benefits last year

Canadian life and health insurance companies paid out more than $113 billion in benefits in 2021 – more than ever before – with nearly $600 million of those claims related to mental health, according to the Canadian Life and Health Insurance Association (CLHIA). 

According to the CLHIA’s new fact book, the amount insurers paid out in claims was up almost $10 billion from pre-pandemic levels. 

“2021 was a year of recovery,” wrote Stephen Frank, CLHIA President and CEO. “Insurers have been proud partners in this, helping employers and their employees get back on their feet by providing workplace benefits that are flexible and relevant to attract and keep top talent and help people plan for retirement. The number of Canadians with workplace benefits is increasing, with hundreds of thousands more workers and their dependents having workplace health benefits than the year prior.” 

In fact, insurers paid out a record $40.8 billion in claims for drugs, dental, disability and accident coverage in 2021. 

COVID-19 brought about an increase in mental health supports, with claims growing 75 per cent since before the pandemic, and insurers paying out $580 million for counselling and therapies in 2021.

Life and health insurers collected $139 billion in premium revenues. 

There are 63 member companies of CLHIA, 47 of which are life insurance firms, eight are not-for-profit health care providers, five are fraternal benefit societies and three are property and casualty companies. 

Together, they provide financial protection for more than 29 million Canadians: life insurers provided Canadians with coverage totalling $5.3 trillion, 27 million Canadians have health coverage and eight million have their retirement savings managed by insurers. More than 85 per cent of small businesses that provide pensions, RRSPs, TFSAs and RRIFs to their employees offer them through life and health insurers.

Frank said insurers’ capital reserves are more than required by the government so that Canadians can be confident that the protection will be there for them when they need it.