Canada’s life and health insurers paid out a record $143.3 billion in health and retirement benefits last year, up from $128 billion in 2023, according to the Canadian Life and Health Insurance Association’s annual fact book.
“At a time when our country is facing economic uncertainty and our health-care system is under strain, life and health insurers continue to be there for Canadians,” said Stephen Frank, president and chief executive officer of the CLHIA, in a press release. “By offering benefits that go above and beyond what the public system can offer, insurers have an important role in supporting Canadians.”
Read: Canadian insurers paid out record $128BN in health, retirement benefits in 2023: CLHIA
In 2024, health insurers paid out a record $53.3 billion in total claims, up from $48 billion in 2023. The breakdown for health benefits includes $16.6 billion for drugs, $12.6 billion for dental, $1.9 billion for massage, $1.6 billion for vision, $1 billion for other paramedical and $900 million for mental health. Other substantial claims paid out included $8 billion for long-term disability and $2 billion for short-term disability.
In terms of pension plans, insurers paid out $71.4 billion in annuities to retirees in 2024 and 64 per cent of this total was paid out to group plan members. Accumulation annuities have driven growth in retirement assets held by insurers, up an average of six per cent annually since 2014.
The fact book also noted insurers managed $420 billion of the $3 trillion in total private pension assets in 2023. This includes assets in roughly 15,000 private workplace plans provided to 3.3 million people.
Read: Canadian insurers paid out record $114BN in health, retirement benefits in 2022: CLHIA