Value of Commercial Insurance to the Canadian Economy

Commercial insurance acts as the bedrock for the Canadian economy. Insurers protect the economic system from failure by assuming the risks inherent in the production of goods and services. This transfer of risk frees insured companies from the potentially paralyzing fear that an accident or mistake could cause large losses or even financial ruin.

The ability to act as a financial shock absorber is heightened in challenging times like today, as Canadians feel the impact of an inflationary environment and periods of lower economic growth, illustrated most plainly by price shocks and the subsequent cost of living crisis. In such a landscape, insurers have a unique perspective and, indeed, responsibility in absorbing the impact for both consumers and the wider economy.

There are approximately 1.3 million businesses in Canada. All have one thing in common: Without the right insurance coverage, each could be wiped out by a disaster or a lawsuit.

While insurance often exists in the background, its greatest benefit is perhaps best demonstrated by the broader socio-economic value it provides Canadians. The latest report from Insurance Bureau of Canada, Commercial Insurance in Canada: A Socio-Economic Analysis of a Vital Industry, illustrates the important role that the commercial insurance industry plays in enabling modern life in Canada.