About the Home, Car and Business Insurance Industry in Canada

The private (non-government-owned) home, car and business insurance industry in Canada provides insurance protection for most homes, motor vehicles and commercial enterprises throughout the country.

At least 214 private general insurance companies actively compete in Canada. In addition, mandatory auto insurance coverage is provided exclusively by government-owned auto insurers in British Columbia, Manitoba and Saskatchewan. The bodily injury portion of automobile insurance in Quebec is also provided by a government-owned insurer.

General insurance underpins much of the country’s economy by assuming part of the financial risk inherent in running a business, driving a car or owning a home. While the basic theory is simple — the premiums of many policyholders pay a proportion of the compensation to the unfortunate few who suffer insured losses — some of the practicalities of measuring risk fairly and paying claims promptly are quite complicated. It is surprising to many, for example, that insurers pay out more in claims than they collect in premiums.

The general insurance industry includes the people and resources involved in providing all types of insurance other than life and health insurance. Car insurance, insurance for homeowners and tenants, as well as a variety of commercial or business-oriented lines of insurance, such as liability or business interruption, account for most of the general insurance sold in Canada.

Car insurance continues to be the largest single piece of the general insurance industry. Total premiums for car insurance are more than those for all other classes combined. Property insurance ranks second and liability insurance is third. Liability insurance includes product liability, which protects the public for injury suffered due to defective goods and services.

General insurance companies are supervised by the federal or provincial governments. About 100 of these companies, both Canadian and foreign-owned, provide most of the general insurance purchased in this country. The property and casualty insurance industry is a major part of the social and economic fabric of Canada. Home, car and business insurers invest mainly in domestic government and corporate bonds, and in preferred and common stocks.

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