Canada : Financial Sector Assessment Program
Technical Note-Insurance Sector: Regulation and Supervision
Series:Country Report No. 20/21
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Publication year: 2020
Cdn: $25.00; US: $18.00
Canada has a highly developed insurance market that is important to Canada’s economy. Insurance penetration and density are as expected for an advanced economy like Canada. Canada is home to three large life-and-health (L&H) insurance conglomerates that are globally active, with only approximately a third of their business within Canada. In contrast to the L&H insurance industry, the property-and-casaulty (P&C) insurance industry is less concentrated, and foreign-owned insurance subsidiaries and branches have a significant market share. There are three mortgage insurers operating in Canada. The largest mortgage insurer is the Canada Mortgage and Housing Corporation (CMHC), which is a federal government agency that operates on a commercial basis; CMHC also has a separate social housing mandate. All mortgage insurers benefit from an explicit government guarantee; however, a deductible of 10 percent of the original principal amount of the insured mortgage applies to a lender’s claim in respect to an insurance contract written by either of the two private mortgage insurers.