Canada has a high standard of living and a market-oriented economy. It is also the second biggest country in the World. After the U.S. – Canada Free Trade Agreement was approved in 1989, the economic and trade integration between Canada and the United States has increased significantly. Canada has enjoyed a stable economy since 1989 due to its natural resources, skilled workforce, and modern capital facilities. Canada’s insurance industry plays a significant role in the country’s social and economic life.
About 230 private insurers compete in the Canadian Insurance Market, and 27 are providers of sickness, accident, and life insurance. In Manitoba Saskatchewan, and British Columbia, the government-owned auto insurers are responsible for providing compulsory auto insurance. In Quebec, the government-owned insurers also provide the bodily injury portion of automobile insurance.
Automobile Insurance is Canada’s largest class of general insurance. The total premiums paid for auto insurance are higher than all other insurance classes combined. Next comes property insurance and then liability insurance.
Canada’s general insurance companies are regulated by the federal or provincial government. Private property and casualty insurance companies in Canada employ more than 100.000 people, including independent brokers and actuaries. Insurance claims are a source of income for many other professions, including car repair, construction and law.
Let us take The Co-operators Group Ltd as an example of a successful, nationwide insurance company in Canada. It was created in 1975 following the agreement of coordination between the Co-operative Insurance Services and Co-operators Insurance Association companies resulting in a new holding company.
The primary mission of the company was to develop and maintain user-controlled institutions that operate on co-operative principles, with the goal to provide insurance and finance services. The Co-operators Group actually operated as a management and services organization, assisting The Group’s companies with their management by providing them with the tools, advice and mechanisms they needed to succeed. Let’s note that among The Group companies, let’s start with Co-operators Life Insurance Company, created in 1982 after merging Co-operative Life Insurance Company, and Co-operators Life Insurance Association, both belonging to The Co-operators Group.
The company has now been ranked among the top 10 life insurance companies in Canada.
Co-operators Travel Insurance and Cooperatives Auto Insurance are also offered by Cooperators.