Insurance brokers add billions to Canada’s GDP
Published: April 23, 2019
CATEGORY: Industry News
While the insurance broker network faces numerous challenges, it remains a vital contributor to the Canadian economy. According to new data published by the Insurance Brokers Association of Canada (IBAC) today, during 2017 member brokers added around $5.4 billion to the country’s GDP.
The data comes from the results of a study that investigated the economic and social impact P&C broker network has in Canada.
“We know that insurance brokers’ business operations add value to the provincial and national economies,” said IBAC CEO’s Peter Braid. “We also know that virtually every community across Canada benefits from the volunteer and philanthropic contributions of brokers and their employees.”
Deloitte Canada conducted the study on behalf of IBAC, looking into the economic effectiveness of the broker industry on national and provincial GDP. The company engaged with 11 member associations and surveyed 1,770 brokerage owners across the country. The result was a $5.4 billion contribution to Canada’s economy, of which $3.3 billion came from labour income.
During 2017, the broker network maintained 58,300 full-time jobs in the country. Brokers have come under increasing pressure in recent years with insurance companies beefing up their direct channels. Many association members of IBAC have conducted campaigns to highlight the vital role brokers play for consumers.
The Deloitte Canada study emphasized the point by showing the social benefits insurance brokers bring to communities. 90% of surveyed brokerages make charitable contributions in the community, while 70% of employees have volunteered with local causes.
“Insurance brokers want to make a difference and help others in their community,” commented Braid. “Being involved and getting to know your neighbours means that you can be there for them when they need advice on insurance or assistance with a claim.”
IBAC’s president Chris Floyd said, “This report puts real numbers on the significant economic impact of over 38,000 insurance brokers represented by our member associations. And just as importantly, it illustrates the range of invaluable contributions that brokers make in their communities. Brokers everywhere can be proud of their profession and their role in helping to shape the fabric of Canadian society.”