Author/Editor:

International Monetary Fund. Monetary and Capital Markets Department

Publication Date:

January 24, 2020

Electronic Access:

Download PDF. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

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.

Series:

Country Report No. 20/21