Canadian Health Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 112.29 Billion |
| Market Size (2029) | USD 149.06 Billion |
| CAGR (2024 - 2029) | 5.83 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Canadian Health Insurance Market Analysis
The Canada Health And Medical Insurance Market size is estimated at USD 112.29 billion in 2024, and is expected to reach USD 149.06 billion by 2029, growing at a CAGR of 5.83% during the forecast period (2024-2029).
Canada has a universal health care system funded through taxes. This means that any Canadian citizen or permanent resident can apply for public health insurance. While Medicare provides all the required health services free of charge to all residents, some employers offer private supplemental health insurance as a benefit to attract quality employees. Each province and territory has a different health plan that covers different services and products. Packaged insurance plans are gaining popularity in Canada and include one plan for medical, death, accident, disability, death, and dismemberment.
Each province holds the responsibility to raise revenue, plan, regulate, and ensure the rightful delivery of healthcare services, although the federal government regulates certain aspects of prescription drugs and subsidizes the province's coverage of services to vulnerable populations. Coverage under the plan changes from province to province, but it generally includes all the coverage mentioned above. The demand for supplementary health insurance plans has also gained momentum, as these cover healthcare costs that are not covered by public health plans, such as prescription drugs, dental, vision, hospitalization, and other services.
The COVID-19 outbreak has impacted the lives and businesses of all individuals in Canada. The pandemic has increased the need for customers to purchase health insurance in order to perceive better medical facilities and healthcare treatments, and the COVID-19 outbreak has resulted in a rapid increase in hospitalizations. Health insurance claims have increased tremendously. The health insurance sector is also coming up with products to meet the requirements for COVID-19-specific policies. The pandemic augmented the market for digital health products, and hence, health insurance providers focused on the process of modernizing and digitizing.
Canadian Health Insurance Market Trends
Private Health Insurance in Canada and Its Implications on the Health Coverage
In 2022, total health expenditure is expected to rise to USD 8,563 per Canadian.Total health spending in Canada is expected to reach USD 331 billion in 2022, or USD 8,563 per Canadian. Canadian Medicare provides coverage for approximately 70 percent of Canadians' healthcare needs, and the remaining 30 percent is paid for through the private sector. The majority of Canadians hold some form of private health care insurance, most commonly obtained as an employment benefit.
Private insurance accounts for around 13% of spending on health, and its financing role is essentially limited to complementary coverage for services not covered by public insurance programs. Private supplementary insurance for services covered by the public insurance system does not effectively exist in Canada. About two-thirds of Canadians have some form of private health insurance that covers services such as vision, dental, outpatient prescription drugs, physical and occupational rehabilitation, psychology and other counseling, and private hospital rooms. This limited role for private insurance in health care reflects the core policy vision for health care financing in Canada, which emphasises equal access to medically necessary health care, especially physician and hospital services.
Prior to 1940, healthcare was essentially financed privately. However, with the advent of the 1984 act on Medicare and its principles, the public had wide scope to receive a lot of health benefits. Canada's national public health insurance is characterised by local control, doctor autonomy, and consumer choice, i.e., patients can choose for themselves which physician and hospital to attend to receive services within their province. Healthcare providers are mostly privately funded by public money via provincial budgets. Hospitals are largely privately owned, not-for-profit organisations that receive annual global operating budgets from the provinces. Physicians practise privately, with their remunerations on a fee-for-service basis received through the provincial health plans.
Spotlight on the Popular Channels Used to Distribute Health Insurance in Canada
More than 130 health insurers serve the people of Canada's healthcare needs.Group sales through medium- and large-sized employers are the dominant channel of distribution in health insurance, which is best utilized by the Canadian population. Together with the traditional career agent or exclusive sales force, health insurers may as well use any combination of independent agents, managing general agencies (MGAs), and national accounts to distribute their products. Each of these channels is further divided into sub-categories. So independent agents may be either individuals working on their own or Personal Producing Groups of Agents (PPGAs); MGAs include Associate General Agencies; and national accounts include both IIROC dealers and MFDA dealers.
MGAs: Managing General Agencies This is allegedly the largest channel of distribution for both life insurance and health insurance in Canada, accounting for approximately 30% of all new premiums.The MGA channel utilizes a wide variety of business models, from large, national organizations to small, local operations. Though there is no clear and consistent description of how the channel operates, there is no evidence of any systemic problems with the channel.
The functions of an MGA include back office support between the advisor and insurer for sales transactions; sales and marketing support for the advisor; and market conduct compliance support for the insurer.
AGA's (Associate General Agencies): They too support independent financial advisors, though on a smaller scale compared to the MGAs. It is mostly a sub to one or more MGAs.
Canadian Health Insurance Industry Overview
It is a fragmented market, with the leading players, such as SunLife, Manulife, and Canada Life Assurance Company, contributing more than one-fourth of the total health insurance market in 2021. However, competition is tightening as consumers become more aware of the benefits of having additional private health coverage. The consumers are resorting to additional health benefits offered by the private players, besides receiving Medicare benefits free of charge. It has major players Manulife, Sun life Financial, Ontario Blue Cross, The Canada Life Assurance Company, and Group Medical Services
Canadian Health Insurance Market Leaders
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Manulife
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Sun life Financial
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Ontario Blue Cross
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The Canada Life Assurance Company
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Group Medical Services
*Disclaimer: Major Players sorted in no particular order
Canadian Health Insurance Market News
- In October 2022, The Canada Life Assurance Company launches three new portfolios that offer clients convenience, protection, and value. Three new passively managed funds offer the convenience of an all-in-one managed portfolio, together with the same protection benefits offered by segregated fund policies.
- In November 2022: Berkshire Hathaway Travel Protection (BHTP), a leading travel insurance provider in North America, announced its partnership with Canada-based SoNomad to offer travel medical insurance. The soNomad Travel Medical Insurance policies are underwritten by the National Liability and Fire Insurance Company in Canada.
Canadian Health Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Insights on Various Regulatory Trends Shaping the Market
4.3 Brief on Health Insurance Premiums and Study on the Effect of Medical Trend Rate on Health Plans
4.4 Role of Private Health Insurance Service Providers in Serving the Healthcare Needs of Canadians
4.5 Insights on the Private Health Insurance Premiums Growth by Type of Coverage and Duration of Plans
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.7 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Private Health Insurance (PMI)
5.1.1.1 Individual Policy Coverage
5.1.1.2 Group Policy Coverage
5.1.2 Public/Social Security Schemes
5.2 By Term of Coverage
5.2.1 Short-term
5.2.2 Long-term
5.3 By Channel of Distribution
5.3.1 Brokers/Agents
5.3.2 Banks
5.3.3 Direct
5.3.4 Companies
5.3.5 Other Channels of Distribution
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration and Major Players)
6.2 Company Profiles
6.2.1 Manulife
6.2.2 Sun life Financial
6.2.3 The Canada Life Assurance Company
6.2.4 Ontario Blue Cross
6.2.5 Group Medical Services*
- *List Not Exhaustive
7. MARKET OPPORTUNTIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
Canadian Health Insurance Industry Segmentation
A complete background analysis of the Canada Health and Medical Insurance Market, including the assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles, are covered in the report. The Canada Health and Medical Insurance Market is divided into product types, coverage terms, and distribution channels.By product types, the market is segmented into private, and public. By coverage terms, the market is segmented into short, and long, and by distribution channels, the market is segmented into brokers/agents, banks, direct purchases, companies, and other channels of distribution. The report offers market size and forecast values for the Canada Health and Medical Insurance Market in USD for the above segments.
| By Product Type | ||||
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| Public/Social Security Schemes |
| By Term of Coverage | |
| Short-term | |
| Long-term |
| By Channel of Distribution | |
| Brokers/Agents | |
| Banks | |
| Direct | |
| Companies | |
| Other Channels of Distribution |
Canadian Health Insurance Market Research FAQs
How big is the Canada Health and Medical Insurance Market?
The Canada Health and Medical Insurance Market size is expected to reach USD 112.29 billion in 2024 and grow at a CAGR of 5.83% to reach USD 149.06 billion by 2029.
What is the current Canada Health and Medical Insurance Market size?
In 2024, the Canada Health and Medical Insurance Market size is expected to reach USD 112.29 billion.
Who are the key players in Canada Health and Medical Insurance Market?
Manulife, Sun life Financial, Ontario Blue Cross, The Canada Life Assurance Company and Group Medical Services are the major companies operating in the Canada Health and Medical Insurance Market.
What years does this Canada Health and Medical Insurance Market cover, and what was the market size in 2023?
In 2023, the Canada Health and Medical Insurance Market size was estimated at USD 105.74 billion. The report covers the Canada Health and Medical Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Canada Health and Medical Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Health Insurance in Canada Industry Report
Statistics for the 2024 Health Insurance in Canada market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Health Insurance in Canada analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
