Life insurance claims totalled $17 billion, up from $16 billion in 2022.
The CLHIA said 23 million Canadians own $5.7 trillion in life insurance coverage, with total coverage increasing steadily over the past decade, given the need to cover larger mortgages and a higher cost of living.
Average life insurance protection per household was $483,000, the report said, up from $474,000 in 2022, and represents about five times household income.
Most life insurance (83% of premiums) was purchased by individuals through a life agent or advisor, the report said, with the remainder representing premiums from group plans.
Also, individual life insurance now equals 65% of the value of total policies in force, the report said — up from 58% a decade ago. The increase was driven mostly by term life insurance, it said.
Nearly $63 billion was paid in retirement benefits, up from nearly $54 billion in 2022. Over 80% of these benefits were provided through segregated funds, the report said.
Health claims set a new record of $48 billion. Prescription drug costs continued to account for the largest share of health benefits, the report said, at $15 billion in 2023.
The $730 million paid in mental health support claims was a 12% increase from the previous year.
Total premiums collected by insurers in 2023 rose to $157 billion, up from $145 billion a year prior. The increase was led by premiums for annuities and segregated funds (up 9.1%), health insurance (up 8.7%), and life insurance (up 6.4%), the report said.