The property and casualty (P&C) insurance industry in Canada’s most populous province contributed, both directly and indirectly, approximately $7.5 billion in real GDP, according to a report commissioned by the Insurance Bureau of Canada (IBC).
“Insurers contribute more to provincial GDP than motor vehicle parts manufacturing, and the entire agriculture, forestry, fishing and hunting sectors combined,” the Insurance Bureau of Canada (IBC) commented upon releasing the results of the report on January 24.
Brokers make up a substantial portion of Ontario’s P&C industry, The Conference Board of Canada study found.
The province was home to 4,924 insurance agencies and brokerages in 2012, compared to 6,179 total P&C and related insurance firms. Ontario is home to more than 40% of all employment in agencies, brokerages and other insurance related activities in Canada.
Overall, 48 P&C insurance and related firms exist per 100,000 persons residing in the province of Ontario. There is at least one P&C insurance firm, insurance broker/agent, claims adjuster or other related insurance firm in 212 different communities across Ontario, the report notes.
In terms of employment, using the most recent data available (2009), the Conference Board found that the P&C insurance industry directly employed 22,000 people in Ontario. It further estimated that P&C insurance activity created 41,000 additional jobs, bringing the total number of direct, indirect, and induced jobs created specifically by the P&C insurance industry to 63,000 people.
The P&C insurance industry in Ontario generated $944 million in corporate income tax, nearly $1.2 billion in personal income tax, and $852 million worth of indirect tax revenues for the federal and provincial governments.
IBC notes “this estimate does not include an estimated $563 million in premium taxes paid by P&C insurers, nor does it include $142 million in health care levies, and $30.2 million in payroll and employee benefit taxes.”
Also not captured in the Conference Board study, the insurance industry provides at least $150 million in property tax revenue used to support municipal government across the province.
