The Canadian general insurance industry consists of over 230 private companies, with annual premiums of more than $18 billion. The premiums are well dispersed, with no company having a market share of greater than 8 percent. The general insurance industry in Canada employs over 100,000 people. Of that 100,000 employees, about 60 percent work for stand-alone intermediaries and 40 percent for companies.

In addition, the governments of Manitoba and Saskatchewan operate monopolies selling auto insurance. In Quebec the government provides the bodily injury portion of auto insurance and in British Columbia, the Insurance Corporation of British Columbia has a government sanctioned monopoly on auto coverage. Automobile insurance accounts for more written premium in Canada than all other lines combined.

Almost 68 percent of the written premiums are with foreign owned insurers.

The only other mandatory line of insurance in Canada is workers compensation.

Regulation

Insurance in Canada is subject to regulation at the Federal level and at the Provincial level. The Federal government–through the Office of the Superintendent of Financial Institutions–oversees the solvency of those insurers doing business in more than one province. (These companies account for over 80 percent of all insurance written in Canada.) The provincial superintendents regulate those companies that do business only in one province.

The provincial superintendents also administer the Insurance Acts of their province. These acts provide the superintendents with broad control over the insurance industry in a particular province. Provincial superintendents regulate the licensing of agents, brokers, and independent adjusters.

Most insurance in Canada is sold by brokers. The brokers are licensed at the provincial level. Commissions paid to brokers range from 12.5 percent to 20 percent.