The value added of the insurance, reinsurance, and pension funding sectors in Canada has demonstrated a fluctuating trend from 2013 to 2023, starting at 20.9 billion CAD in 2013 and growing to 25.17 billion CAD in 2023. The data reflects periods of both moderate growth and significant volatility, with noticeable dips and recoveries. The sharpest decline occurred in 2016 with a year-on-year decrease of 13.23%, followed by a recovery in 2017 with an increase of 15.35%. The growth rate has generally tempered in recent years, with an average annual increase (CAGR) of approximately 1.58% from 2018 to 2023.
Looking forward, the value is expected to continue its rising trajectory, reaching up to 26.62 billion CAD by 2028. The forecasted annual growth rate (CAGR) over the next five years is anticipated to be 0.88%, reflecting a slower but steady pace of industry expansion.
Future trends to watch for:
- Integration of advanced technologies like AI and big data analytics in underwriting and claims processing.
- Shift towards more personalized insurance products and services, driven by changing consumer preferences.
- Increased regulatory scrutiny and the need for stronger risk management practices.
- Rising importance of sustainability and ESG considerations in investment strategies.
