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Brokers are pulling their weight in the Canadian economy. The Insurance Brokers Association of Canada (IBAC) today released the results of a study that measured the economic and social impacts of property and casualty insurance brokers, finding that in 2017, member brokerages contributed around $5.4 billion to Canada's GDP.
“We know that insurance brokers’ business operations add value to the provincial and national economies,” said IBAC CEO’s Peter Braid. “We also know that virtually every community across Canada benefits from the volunteer and philanthropic contributions of brokers and their employees.”
IBAC engaged Deloitte Canada to analyze the economic contribution of the insurance brokering industry to both national and provincial economies, as well as identify a spectrum of social contributions this group makes.
Working with IBAC’s 11 member associations, Deloitte surveyed 1,770 brokerage owners from coast to coast to arrive at the $5.4 billion figure, of which approximately $3.3 billion was contribution to labour income.
At the same time, the brokerage industry maintained an estimated 58,300 full-time equivalent jobs in Canada. That means that for every dollar spent on broker business activities, around $1.49 in total GDP was generated in the economy. Member brokerages likewise contributed $480 million in production and consumption taxes for the government in 2017.
As insurance associations introduce campaigns to underscore the value of brokers, the study also made this point by pointing to the social benefits that insurance brokers bring to their communities. For instance, 90% of brokerages surveyed made monetary donations, and 70% of their employees volunteered with local charities and social causes. Some brokers do even more, responding to natural catastrophes, promoting diversity and inclusion initiatives, and connecting with rural and indigenous communities.
“Insurance brokers want to make a difference and help others in their community,” commented Braid. “Being involved and getting to know your neighbours means that you can be there for them when they need advice on insurance or assistance with a claim.”
IBAC’s president Chris Floyd added, “This report puts real numbers on the significant economic impact of over 38,000 insurance brokers represented by our member associations. And just as importantly, it illustrates the range of invaluable contributions that brokers make in their communities. Brokers everywhere can be proud of their profession and their role in helping to shape the fabric of Canadian society.”
