Claims in Canada rising: $143.3 billion paid to help keep Canadians healthy and financially secure

TORONTO, Sept. 23, 2025 /CNW/ - Canada's life and health insurers paid out a record $143.3 billion in 2024 for insurance benefits and retirement solutions that protect and support the health and financial security of Canadians. Up nearly 12 per cent over the previous year, that's the equivalent of about $400 million per day being paid out directly to Canadians, according to new data.

"At a time when our country is facing economic uncertainty and our healthcare system is under strain, life and health insurers continue to be there for Canadians," said Stephen Frank, President and CEO, Canadian Life and Health Insurance Association (CLHIA). "By offering benefits that go above and beyond what the public system can offer, insurers have an important role in supporting Canadians."

Today, the CLHIA released its annual Canadian Life & Health Insurance Facts with updated industry-wide information of insurance companies in Canada. Included in the data is a breakdown of health benefits including prescription drugs, dental, vision and other important services that prevent and manage illness, such as physiotherapy and mental health counselling.

Critical to reducing strain on the public system, health benefits cover 27 million Canadians. Insurers covered $53.3 billion in total health claims in 2024, up from $48.2 billion from the previous year. While prescription drug costs continue to account for the largest share of health benefits at $16.6 billion, claims for paramedical services like mental health and massage increased by 16 per cent, leading the growth of health claims in 2024.

The report also shows the sector's impact on the Canadian economy, employing more than 180,000 Canadians and paying $12.1 billion in taxes. Insurers hold more than $1 trillion in long-term investments that contribute to Canada's economic growth. Insurers also hold $50 billion in domestic infrastructure assets that are critical to helping improve Canada's long-term growth prospects.

"As the federal government looks to unlock more investments for nation-building projects, Canada's life and health insurers are ready-and-willing partners," said Frank.

Other highlights from the 2025 report shows insurers paid out:

• $71.4 billion in retirement benefits from annuities.
• $18.6 billion in life insurance benefits.
• $10 billion in disability benefits, helping 12 million Canadians replace wages while they were unable to work.
• $16.6 billion in prescription drugs in 2024, compared with $15.3 billion the previous year.

Canadian Life & Health Insurance Facts is published annually by CLHIA relying on industry and publicly available data. It is available at clhia.ca/facts.

About the CLHIA
The CLHIA is a voluntary association whose member companies account for 99 per cent of Canada's life and health insurance business. These insurers provide a wide range of financial security products including life insurance, annuities (including TFSAs, RRSPs, RRIFs and pensions) and supplementary health insurance to nearly 30 million Canadians. They hold nearly $1.2 trillion in assets in Canada and employ over 180,000 Canadians.

SOURCE Canadian Life and Health Insurance Association Inc.

For more information: Tom Hansen, [email protected]