The industry's top provincial contributors

On a provincial level, Ontario's P&C industry contributes the most to the GDP — at $12 billion, alongside 72,000 jobs and nearly $4 billion in tax revenue.

Next is Alberta, with $2 billion in GDP contributions, 17,000 jobs and almost $680 in tax revenue. New Brunswick and Nova Scotia expectedly follow.

In Nova Scotia, it contributes $330 million to GDP and almost $209 million in tax revenue, along with 2,200 jobs.

Lastly, in New Brunswick, the P&C industry contributes $260 million in GDP and $156 million in tax revenue, as well as creates over 3,100 jobs.

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Bolstering Canada in other ways

With its $38 billion contributions to the GDP, IBC also broke down how the P&C industry meaningfully contributes to Canadians and the nation's economy in other ways:

  • The total number of jobs created by the P&C insurance industry is an estimated 297,000
  • The industry employed a higher percentage of women (60%) in 2021 compared to the national average (48%)
  • P&C insurers contribute more than $12 billion annually in federal and provincial taxes and levies
  • Insurers invest heavily in government bonds that support Canada's economy. In 2022, the P&C insurance industry held almost $39 billion in federal, provincial, municipal, public authority and school bonds

"Canada's P&C insurance industry is proud of our role in helping people manage risk and in fuelling prosperity across the country," adds Power.

"Key to that role is working in partnership with governments and other stakeholders to address evolving risks and find solutions that help Canadians become more resilient.”

Founded in 1964, the IBC is the national industry association representing Canada's private home, auto and business insurers.

How insurers are looking to tackle important problems that concern Canadians

Alongside recognizing the P&C industry's positive impact on the economy, IBC is also concerned with how auto theft has become a major concern for both Canadians and insurers alike, with the cost of replacing stolen vehicles skyrocketing to $1.5 billion in 2023. This is the second year that losses have topped $1 billion, whereas between 2018 to 2021, losses topped $556 million, annually.

In order to help thwart this problem, IBC and its insurance industry partners are looking to help Canadians and end this existential threat in a multitude of ways. IBC has advocated for auto manufacturers to equip vehicles with anti-theft safety devices and update the current anti-theft safety standard, since the majority of stolen vehicles are 2019 or newer models.

Additionally, IBC has advocated for insurers to educate consumers about auto theft and how the vehicles that are at a higher risk of theft have higher insurance costs. On a provincial level, the organization has called for reforms that would mend loopholes in the vehicle registration process that bad actors take advantage of to reVIN stolen vehicles and sell them to unsuspecting consumers. This involves rigorous vehicle identification number inspection and registration reform across multiple provinces and more resources directed to this issue.

Aside from auto theft, IBC is also heeding widespread anxiety about the impact of climate disasters — specifically floods — on Canadians' properties and livelihoods.

A recent IBC-commissioned survey demonstrates how demand for flood insurance is high among Canadians, especially among residents of the Maritime provinces, with 71% of respondents supporting the federal government’s introduction of a national flood insurance program, while 76% believe that flood protection should be a priority for the federal government.

As a result, the nation's Budget 2024 confirmed the government’s intention to partner with the P&C industry to launch a low cost national flood insurance program for those at highest risk by mid-2025. This essential coverage will be available through a subsidiary of Canada Mortgage and Housing Corporation.

Sources

1. IBC: Canada's InsurEconomy (Jun 25, 2024)

3. IBC: "Canadians need flood protection" (Jan 25, 2024)

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Nicholas completed his master's in journalism and communications at Western University. Since then, he's worked as a reporter at the Financial Post, Healthing.ca, Sustainable Biz Canada and more. Aside from reporting, he also has experience in web production, social media management, photography and video production. His work can also be found in the Toronto Star, Yahoo Finance Canada, Electric Autonomy Canada and Exclaim among others.

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