Supporting Alberta: how insurers drive stability and growth
Alberta is an economic engine of Canada, driven by diverse sectors ranging from agriculture to energy. While often overlooked, the property and casualty (P&C) insurance industry plays a crucial role in supporting the province’s economic growth, as well as its overall financial stability. Insurance products and services go beyond mere risk management; they safeguard supply chains, ensure businesses can get back on their feet quickly, and enhance peace of mind.
A 2022 report from Insurance Bureau of Canada (IBC) quantified the important role the insurance industry plays in supporting Alberta’s economic well-being. The report used 2022 data, however, some of the numbers have increased since that time and have been adjusted from the initial report. Here are just some of the highlights on how insurers are making an impact:
Directly contributing to gross domestic product (GDP). Year-over-year, Alberta’s P&C insurance industry directly contributes $2 billion to the province’s GDP. The total economic impact is nearly $4 billion when including the industry’s spending on provincial supply chains and the insurance industry employment income spent on goods and services.
Supporting jobs, job creation and services. According to the latest data from IBC, P&C insurers and brokerages directly employed close to 24,000 Albertans in communities across the province. More than 60% of these jobs are held by women, helping to further gender equality. For every 100 P&C insurance jobs, 94 jobs are indirectly created. These jobs span various sectors, including auto repair, health care, suppliers and retail.
Contributing to tax revenue. The P&C insurance industry contributes substantially to Alberta’s tax revenue. In 2023, the industry’s total tax contribution to provincial finances exceeded $752 million. These contributions bolster government revenues and support public services.
Investing in communities. In 2022, the P&C insurance industry invested approximately $22 billion in provincial, municipal, public authority and school bonds, and another $17 billion in federal government bonds. Government bonds are a key source of provincial revenue that support services and critical infrastructure investments that benefit the public at large.
Serving as financial first responders. Insurance protects consumers from financial loss and infuses capital into the economy that helps support the jobs, goods and services needed to service claims. In 2023, Alberta’s insurers supported close to $10 billion in claims and related insurance service expenses filed by policyholders, helping families and businesses recover quickly when disaster struck. Of that total, 39% went toward private passenger auto insurance claims and expenses.
Alberta’s insurance industry does a lot more than help people and businesses manage risk; it is a vital contributor to the province’s economic resilience. This role extends far beyond policies and premiums – insurers are steadfast partners in promoting financial stability, managing recovery and supporting economic growth and jobs.
For more detail about the industry’s economic footprint in the province, read the full report: