insurance

1. 1
Term Paper
On
Insurance Business Canada
Insurance and Risk Management
Course Code- MGT 224
Submitted To
Md. Alamgir Mollah
Assistant Professor
Department of Management Studies
University of Barisal
Submitted By
Group Name: Limitless
3rd
batch
Department of Management Studies
University of Barisal
Submission Date-25-04-2016

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STUDENTS PROFILE
GROUP:4 (LIMITLESS)
SL Name Roll
Marks
MarksPresentation Term Paper
01. RAYHAN SHARIAR 13MGT 011
02. NIPA 13MGT 026
03. MD SAIFUL ISLAM 13MGT 032
04. MD. ABUBAKAR
SIDDIK
13MGT052
05. RAJIB HOSSAIN 13MGT 045
06. TASMIYA ALAM
ZETU
13MGT 062

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Table of Contents
SL. Content name Page
Chapter one
1.1 Summery……………………………………… 04
1.2 objectives of the study………………………… 06
1.3 Limitation of the study………………………... 06
Chapter two
2.1 Introduction…………………………………… 07
2.2 History of insurance business of Canada … 08
2.3 Present economic condition of Canada…. 14
2.4 Insurance company Act…. 17
2.5 Kinds of insurance…… 23
2.6 Economical trend of Canada……………. 26
2.7 Role plays in development of Canada by insurance 28
2.8 Contribution to GDP…… 30
2.9 Termination of insurance business in Canada…. 32
2.10 List of Canadian insurance company…. 37
2.11 Top 4 things people should know about life
insurance in Canada……
40
Chapter three Recommendation & Conclusion….
3.1 Finding & analysis 42
3.2 Recommendation 43
3.3 Conclusion 44
Reference
45
Abbreviation
46

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CHAPTER ONE: INTRODUCTION
1.1 Summary
This report is an assigned job as a partial fulfillment of course requirement by Honorable Course Teacher
Alamgir Mollah. Assistant Professor, Dept. of Management studies, Faculty of Business Administration.
It is the optimum aggregated outcome of 6 pupils about a report on “Insurance in CANADIAN.”
Canada’s rapid rate of economic growth over the past decade has been one of the most significant
developments in the global economy. This growth traces its origin in the introduction of economic
liberalization in the early 1985s. Canadian January 2016 GDP jumped by a much stronger than expected
0.6% following a 0.2% increase in December 2015. The increase benefitted from output in goods-
producing industries jumping by 1.2% in the month following a 0.3% gain in December. Service-
producing industries rose by a solid 0.4%, which doubled the 0.2% gain in December. The rise in January
GDP built further onto gains in December and November of 0.2% and 0.3%, respectively. Latest month
Previous Month Year Ago Real GDP Jan 0.6 1.5 Industrial production Jan 1.6 0.6 Employment Mar 0.2
0.7 Unemployment rate* Mar 7.1 6.8 Manufacturing Production Jan 1.9 2.6 Employment Mar -1.8 0.5
Shipments Feb -3.3 3.9 New orders Feb -8.1 2.6 Inventories Feb -0.7 0.2 Retail sales Feb 0.4 5.6 Car sales
Feb 0.7 9.4 Housing starts (000s) * Mar 204.6 190.7 Exports Feb -5.4 2.1 Imports Feb -2.6 2.3 Trade
balance ($ billions) * Feb -1.9 -1.8 Consumer prices Mar 0.6 1.3 % change from. Development Authority
Act in 1995 Canada abandoned public sector exclusivity in the insurance industry in favor of market-
driven competition. This shift has brought about major changes to the industry. The newer of insurance
development has seen the entry of international insurers, the proliferation of innovative products and
distribution channels, and the raising of supervision standards. The period post-sector liberalization, which
we call Phase I, has witnessed an unprecedented surge in the sales of insurance products, with the industry
recording a CAGR of 26.7% in annualized premium equivalent during FY07–09. The insurance industry,
in its first phase of development, has been relying on regular capital infusions from the promoters as its
lifeline. High new business strain and expanding distribution networks have resulted in accounting losses
across the industry. In order to meet their commitment toward claim settlement and reserve creation,
promoters, this study shows us to find growth of conventional insurance industry in Canada. The study
offers recommendations to make the insurance market in Canada vibrant and useful for the economy.

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1.2 Objective of the study
Our study basically on the insurance of Canada. we search AND analysis on different types of data such
as Canadian Statistical Bureau, we collect information from different website. our study has many
objectives. Such as
1. To build consensus among members on issues and concerns of importance of insurance.
2. To promote a legislative and regulatory environment favorable to the insurance business of its members.
3. To inform and educate insured about prevention of loss and reducing risk.
4. Identify key insurance issues at the end provincial or federal level in Canada.
5. To know the present condition of Canadian economy.
6. To identify different types of insurance in Canada and comparison between Bangladesh and Canadian
insurance.
7. To focus the present insurance sector scenario of Canada.
8. To identify the problems that are hindering the development of insurance industry of Canada.
9. To examine the scope and opportunities of insurance industry of Canada.
10. To identify the contribution to the GDP of insurance industry of Canada.
11. To focus on the future position of insurance business in Canada.
12. How insurance business plays a vital role in development of the country.
1.3 Limitations:
Preparing the term paper we have faced some obstacles which are: -
1. We face many problem as we are unexperienced
2. Limited funding, choice of research design, statistical model constraints etc.
3. The people whom we managed to get to take our survey may not truly be a random sample, which is
also a limitation.
4. Lack of proper information in the websites of the insurance company.
5. Lack of necessary information in the journals and official publications of insurance companies.
6. Inexperience and time constraint is the limitation restricting this report from being more detailed

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CHAPTER TWO: MAIN BODY
2.1 Introduction
Insurance is the well-known and well developed for in developed and underdeveloped countries. Insurance
represents an important tool to lessen risks borne by individuals and businesses in modern economies. It
is nothing but a mechanism of spreading the risk of one to the shoulders of many. It is a contract whereby
the insurer, on receipt of a consideration known as premium, agrees to indemnify the insured against losses
arising out of certain specified unforeseen contingencies or perils insured against. They are also an
important component in the financial inter- mediation chain of a country and are a source of long- term
capital for infrastructure and long-term projects. Through their participation in financial markets, they also
provide support in stabilizing the markets by evening out any fluctuations. The insurance business is
broadly divided into life, health, and non-life insurance. Individuals, fame- lies, and businesses face risks
of premature death, depletion in income because of retirement, health risks, loss of property, risk of legal
liability etc. The primary objective of insurance companies is to protect individuals and corporations
(policyholders) from adverse events. The insurance businesses are of two types, namely, life insurance
and property-casualty (general) insurance. Life insurance provides protection against the possibility of
untimely death, illness, and retirement. Property insurance protects against personal injury and liability
such as accidents, theft and fire. The availability of insurance can mitigate the impacts of risk by providing
products which help organizations and individuals to minimize the consequences of risk and has a positive
effect on industry growth as entrepreneurs are able to cover their risks. The future growth depends on how
service- oriented insurers are going to be. On the demand side, the rise in incomes will trigger the growth
of physical and financial assets. In Canada, there is a greater degree of risk and the insurance market is so
large as compared to the degree of risk. . By. However, servicing of the large domestic market in Canada
is a real challengeable. The insurance industry is also an integral part of the financial system. effective
functioning of the financial system, it is important that the markets are efficient by ensuring liquidity and
transparency in price discovery. The role of the insurance companies as financial intermediaries is also
considered significant in making these markets efficient by providing liquidity and credit. This report we
see the real scenario of insurance business and where it will be go.

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2.2 History of Canadian Insurance
1858 gold was discovered on The Fraser river, near Yale. Along with the influx of people and
wealth in the province came the need for insurance. Fire protection was introduced in Victoria a year later.
In 1860, the first documented insurance policy was sold in Victoria.
1886 on May 28, The Founding meeting of The Volunteer Fire brigade for the village of
Granville, pop. 600, took place at George Scheck’s men’s clothing store. They made plans to raise money
for uniforms and equipment, but their good intentions weren’t enough when on June 13 a sudden fire
levelled the town. Although it lasted less than an hour, it was devastating, killing 20 people and destroying
an estimated $1.2 million in property, hardly any of which was covered by insurance. Rebuilding of what
was to be the city of Vancouver started the next day, and the city ordered a pump, hose and hose reels for
the new fire brigade – the beginning of today’s Vancouver Fire Department.
1890 The Coming of the Canadian Pacific Railway in Vancouver led to the incorporation
of The Pacific Coast Fire Insurance Company through a special act of the Legislature. The first officers
of the company were James W. Horne, president, Charles Hay, manager, and R.W. Harris, secretary. Mr.
Hay secured the first policy on August 27, 1890; he was the great-grandfather of Peter Wright, who after
a long career in insurance, in 1998 founded the Insurance Dispute Resolution Services of B.C. 1902 Farms
were growing to keep Pace with The growing population, but farmers could not easily obtain affordable
coverage. The risk of fire from steam-powered equipment kept rates high, until 46 farmers in the Fraser
Valley incorporated The Mutual Fire Insurance Company of British Columbia. 1918 George shaky
became The First President of The first organized group of insurance agents: The Vancouver Fire
Insurance Agents Association. He was also the first secretary of the Insurance Institute of B.C. and of the
Association of Marine Underwriters of B.C., and a pioneer of the Insurance Board of B.C., the precursor
to today’s Insurance Council. George Scheck (born in 1867 and likely the son of the haberdasher in whose
store the Vancouver Fire Department was founded) fought the Vancouver fire, held the post of U.S.
consular agent in Nanaimo for a time, and in 1906 returned to Vancouver to join the firm of Ross & Shaw
Insurance and Financial Agents, leaving in 1914 to open his own agency.
1922 by now most or all of The Provinces had insurance agents’ associations. Jean-
Charles d’Auteuil, the Secretary to the Quebec association, travelled across Canada and convinced agents
to join their efforts in the creation of a national organization, which became known as the Canadian
Federation of Insurance Agents and Brokers Associations. The inaugural meeting of what is today known

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as the Insurance Brokers Association of Canada was held in the Windsor Hotel in Montreal in January
1922. On their agenda was the need to influence federal public policy in keeping insurance separate from
banking. This has been the national association’s “prime directive” ever since. As a result of association
lobbying, the federal Bank Act was revised the following year, prohibiting banks from interfering with
insurance contracts or placing insurance for clients.
1925 in 1925 The Vancouver Fire insurance agent’s association had about 100 members
who paid dues ranging from $5 to $50; they held a “lecture course”, dance and banquet, and published a
directory and bulletin; they paid dues to the national “Insurance Federation”, and showed a surplus for the
year of $75.27. By 1939, the name had changed to the Vancouver Insurance Agents’ Association, and it
collected assessments from its members and from “affiliated insurance associations” on behalf of the
Insurance Board of B.C.
1946 The insurance agents’ association of B.C. was Formed as an umbrella group of the
approximately 32 regional broker associations in the province. For many years, it and the Greater
Vancouver Insurance Agents’ Association, the Insurance Council of B.C. and the B.C. Association of
Marine Underwriters operated out of the same office. Woody Woodman was an early secretary-manager,
followed by Neville Reid, and then by George Rick art, who served from the early 1960s to 1978. After
retiring to his homeland of Scotland for a few years, rick art returned to Vancouver and was a CAIB exam
marker for IBABC until well into his 90s.
1948 The insurance agents’ association of B.C. hosted The first annual industry
Conference in Van- cover; Richmond was also a frequent venue. Having displays was a logical
addition to the event, and each year more and more industry associates sought the opportunity to reach
brokers in this manner, leading to today’s Conference & Trade Show.
1949 The insurance agents’ association of B.C. began sending “informational bulletins” under
the banner of The BC Agent in 1949. The first edition in 1949 stated: “We admit to no grand style. We
have no scurrying reporters, no roaring presses, no barking editor. Statistically, our staff is something like
.15 persons.” Early editions were compilations of articles culled from other insurance publications and
copied on the office duplicating equipment.
1950 George rick art would later reminisce: “On June 15, 1950, The BC Agent announced that,
finally, qualification exams for other than life agents had been adopted as a prime requisite for licensing.

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These examinations would be conducted by the Insurance Board of B.C., now the Council. This after
years of effort by the agents.” For decades, the Association’s ultimate goal was to have insurance
brokering recognized as a profession and Association members fought hard for the establishment of
licensing requirements and standards. In time the Association took over the role of providing the courses
and the exams, and the Council issued the licenses.
1955 broker associations every- where began recognizing The Need for Public Relations
Campaign to raise awareness and understanding of consumers and government officials about the
profession. The Insurance Agents’ Association of B.C. had for many years by then retained PR counsel.
In early 1963, Canadian brokers adopted the “Big I” logo being used successfully by their U.S.
counterparts. 1950 The first qualification exams for the broker profession were held.1948 Brokers hosted
their first annual industry conference. The Motor Vehicle Act was passed. 1946 Regional broker groups
formed a provincial association.
1974 Dave Barrett’s new democratic Party Formed government in 1973, and within
months tabled legislation to create a Crown corporation for auto insurance. The Insurance Corporation of
B.C. sold its first auto policy on March 1. Private insurers questioned the constitutionality of monopoly
public insurance, but the B.C. Supreme Court ruled the plan is within the province’s jurisdiction. Motor
vehicle branches were also granted the right to sell Auto plan insurance. In November brokers staged a
‘grey flannel’ strike, winning government-mandated exclusivity for distribution of auto plan. Private
insurers were excluded from the auto insurance market entirely.
1977 auto insurance rates increased substantially – in some instances drivers faced doubled
premiums. With enabling legislation passed, 10 private insurers re-entered the auto insurance market to
compete for the sale of optional coverage. Two years later, underinsured motorist protection was
implemented. Counterattack was launched; ICBC offered discounts for safe driving.
1978 Jack Lewis, who was one of The 50 original employees at ICBC, replaced George
rick art as manager of the Insurance Agents’ Association of B.C. The manager still wore four hats,
managing as well the Greater Vancouver Insurance Agents Association, the Insurance Council of B.C.
and the Association of Marine Underwriters of B.C. That same year he contracted with Bill Earle to build
and publish The BC Agent in a magazine format on the Association’s behalf. The name was changed to
The BC Broker in 1988 and to BC Broker with ‘The’ being dropped in 2007.

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1981 ICBC employees embarked on a Five-month strike due to ‘an economic conflict in the
field of industrial relations with no precedent in British Columbia’. IAABC had, some years before,
implemented a courier system to enable members to maintain operations during postal strikes and other
disruptions. That courier system was quickly activated to assist members through the ICBC employees’
strike.
1982 brokers Passionately debated whether or not credit-union-owned agencies should be able to
join the newly formed Insurance Brokers Association of B.C. A compromise was reached with the creation
of an associate member category for brokerages with majority ownership by financial institutions. Conrad
Spears was the first president of the association under its new name; Jack Lewis was the secretary-
manager.
1992 “don’t waste Time learning The Tricks of the Profession; instead, learn the profession.
And learn to listen. Opportunity sometimes knocks very softly.” With these words, John Glavine accepted
the first Insurance Person of the Year award at the inaugural Salute banquet. After wartime service in the
Navy, Glavine spent his insurance career with the Dominion of Canada, and still serves in a volunteer
capacity with the Insurance Dispute Resolution Services of B.C. in his retirement. “Utmost good faith,”
Gavin said, “is the golden thread which weaves its way through the fabric of the general insurance
industry.” Founding the Insurance Person of the Year award were Bill Earle of Insurance west Media,
Jack Hamilton of IBABC, Jim Ball of Reliance Insurance and Brian Wills of Axe Pacific. The Motor
Vehicle Branch announced that all licensing and sales tax functions formerly carried out by the MVB
would now be completed by auto plan brokers. The Air Care program was launched in Greater Vancouver.
1993 IBABC Produced 16 seminar videos for The video library, which would be a popular component of
the IBABC education program until 2004 when it was phased out in favor of online courses. ICBC
launched the Road Sense program.
2000 ICBC rolled out its strategy for Phasing out its mainframe Technology in favor of a web-
based sys- tem, with all brokers entering transactions on an Extranet. The transition would take about two
years and require every Auto plan broker in the province to obtain an Internet connection. With this
transition, B.C. brokers were ahead of their colleagues across Canada in having the capability to engage
in online education. Renate Mueller became the first woman in IBABC’s 55 years to lead as president.
ICBC’s commitment to the Strategic Accord was put under scrutiny when it allowed call center sales of
Auto plan without prior consultation.

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2001 IBAC introduced The Canadian Professional insurance broker (CPIB)
designation, which allowed licensees to combine mainstream education obtained through local colleges
and universities with specific industry courses for the next level of designation after the CAIB. Gordon
Campbell’s Liberal Party formed government after nearly a decade in Opposition, and hit the ground
running. Every ministry and Crown corporation underwent a core services review. Given that one of his
pre-election promises was to increase competition in the auto insurance market, the industry held its
collective breath as it waited to see how the new government would act on that promise. Government
started to review many statutes important to the industry; IBABC stepped up its government-relations
activities accordingly.
2002 IBABC revved up its Political machine, urging members to tell their MLAs: That
auto insurance is a social issue, and that ICBC should be maintained; any revisions to it should be made
incrementally to maintain stability in the marketplace. That to best protect the public, regulations
regarding the sale of insurance should be maintained; the financial services sector is not the place to “cut
red tape.” Specifically, the prohibition on rebating be maintained. That provincially regulated financial
institutions continue to be prohibited from retailing insurance through their branches, and that the separate-
premises regulations for financial institutions and their insurance subsidiaries continue. • That the “just
cause” provision of the Auto plan contract be maintained so that con- tracts could not be cancelled for low
sales volumes or adverse selection. The P&C insurance market across Canada experienced one of the
hardest market cycles ever. Fall-out from the September 11, 2001, attacks on the World Trade Center
towers was seen as contributing to the poor results.
2003 B.C. brokers were The first in Canada to have online access -To high quality
Technical Courses to meet their licensing and mandatory education requirements with IBABC offering an
online version of CAIB 1. After several years of insurers and brokers across Canada working toward what
was understood to be an industry-wide goal of single-entry, multi-company interface (SEMCI), the Centre
for Study of Insurance Operations (CSIO) launched the first phase of the insurance portal for Ontario auto
insurance transactions. The project was scrapped shortly thereafter. Spadework with government paid off
as legislation was passed that restructured the public auto system in B.C. • Provisions were maintained for
the cancellation of an Auto plan agency contract only for “just cause” of an agent’s negligence or other
regulat0ory breach of conduct. The summer of 2003 was the worst season for forest fires in 50 years;
7,600 people battled 2,460 blazes; 43,000 people were evacuated from their homes and businesses,
creating the largest fire loss in Canadian insurance his- tory, with about 230 homes totally destroyed in

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the Kelowna area alone, and about $200 million paid out in claims (about two-thirds of the total private-
property claims paid by all insurers in B.C. in 2002).
2007 auto Plan Insurance Transactions had for many years been subject to refuse-
To-issue (RTI) orders for motor-vehicle-related debts, fines and violations. This year brokers had to
accept the prospect of some new non-MV-related RTIs for defaults on child-support payments, for bridge
tolls and for environmental compliance. IBABC did, however, have the support of the provincial
government in refusing the request from the Union of B.C. Municipalities for RTI orders for municipal
bylaw violations. As mandated in Bill 93, the Insurance (Motor Vehicle) Amendment Act, 2003, as of
June 1, ICBC issued insurance certificates for basic coverage (as was previously the case, policy wordings
are in legislation) and separate policy wordings for optional coverage. Brokers had consulted at great
length on this over the previous four years. IBABC launched its Young Broker Network for licensees
under the age of 40 to engage in educational and social activities that develop leadership and professional
skills.
2008 at an its symposium hosted by IBABC in February, brokers expressed the frustration
they were experiencing with determining insurance valuations on residential properties. The symposium
led to the formation of a task force and the development of recommended ITV Best Practices for B.C. It
raised the discourse on the topic across Canada. IBABC was the first broker association in Canada to offer
online Fundamentals of Insurance exams. IBABC also phased out its CAIB night school classes in favor
of online discussion groups, which are today known as the Online CAIB Exam Preparation courses. The
Strategic Accord was renewed for another five-year term, ending Dec. 31, 2012. The Accord included one
of the largest increases in broker remuneration seen in the history of ICBC. Royal & Sun Alliance
purchased Canadian Northern Shield, but pledged that CNS would operate separately and would grow in
B.C.
2009 The Insurance amendment ACT (Bill 6), the first major revision of the Insurance Act
since it was first implemented in 1925, received Royal Assent on Oct. 6. IBABC members had consulted
on the drafting of the new act for at least five years. Finance Minister Colin Hansen announced
government’s intention to harmonize its provincial sales tax with the Goods and Services Tax effective
July 1, 2010. The Insurance Council of B.C.’s amended continuing education (CE) requirements for
broker licensees came into effect on the next license renewal date of June 1. The February edition of BC
Broker launched the first Hyper Article. By reading the article, along with supplemental online

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information, licensees could earn CE credits. IBABC had expressed concerns as early as 2005 about the
practice of credit-scoring for underwriting purposes.
2010 amendments to The Financial Institutions ACT (FIA) came into effect on January 1,
increasing the compliance requirements for agents placing business with unauthorized foreign insurers.
Richard Pindar is slated to become the first IBABC president to serve two non-consecutive terms,
returning to the IBABC board in 2008 after serving as president in 2001.
2003 ICBC lines of business separated, with BC Utilities Commission having authority over basic
coverage. 2004 Privacy legislation came into effect, requiring brokers to obtain consent before collecting
and using personal information. 2009 First major amendments to the Insurance Act since 1925.The forest
fires of 2003 in the B.C. interior were the largest fire loss in Canadian insurance history
Insurance Persons of the Year
2000: Eric Laity, education services manager, operations education, Insurance Corporation of B.C.
2001: Ron Defieux, vice-president, TOS Insurance (formerly Defieux Saxelby Insurance Services).
2002: Terri Johnson, vice-president and general manager, B.C., Gore Mutual Insurance Company.
2003: John Toomer, partner, Vancouver General Insurance.
2004: Vince Pritchard, partner, Pritchard Woodall & Associates.
2005: Conrad Speirs, principal, Speirs & Co., Sports-Can Insurance Consultants.
2006: Patti Kernaghan, president & CEO, Kernaghan Adjusters.
2007: Jim Ball, principal, Reliance Insurance Group.
2008: Rick Parent, president, Coast Capital Insurance Services.
2009: Mark Woodall, CEO, Sports-Can Insurance Consultants

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2.3 Present Economic Condition in Canada.
Figure 2.3: Present Economic Condition
Canada has the 11th (nominal) or 15th-largest (PPP) economy in the world (measured in US dollars at
market exchange rates), is one of the world's wealthiest nations, and is a member of the Organization for
Economic Co-operation and Development (OECD) and Group of Seven (G7). As with other developed
nations, the Canadian economy is dominated by the service industry, which employs about three quarters
of Canadians. Canada is unusual among developed countries in the importance of the primary sector, with
the logging and oil industries being two of Canada's most important. Canada also has a sizable
manufacturing sector, based in Central Canada, with the automobile industry and aircraft industry being
especially important. With a long coastline, Canada has the 8th largest commercial fishing and seafood
industry in the world. Canada is one of the global leaders of the entertainment software industry. Canada’s
economic fundame remain strong, well supported by solid protection of property rights and an independent
judiciary that enforces the rule of law effectively.
Economic Freedom Snapshot
 2016 Economic Freedom Score: 78.0 (down 1.1 points)
 Economic Freedom Status: Mostly Free
 Global Ranking: 6th
 Regional Ranking: 1st in North America

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 Notable Successes: Rule of Law, Open Markets, and Regulatory Efficiency
 Concerns: Control of Government Spending
 Overall Score Change since 2012: –1.9
While many large advanced economies have been struggling with the heavy burden of government and
fiscal constraints that result from years of unrestrained public spending, Canada’s management of public
finance has been comparatively prudent, with continued attention to controlling the size and scope of
government.
Gross Domestic Product (GDP)
The OECD provides data for example comparing labor productivity levels in the total economy of each
member nation. In their 2011 report Canada's Gross Domestic Product (GDP) was $CDN 1,720,748
million. In the International Monetary Fund's (IMF) quarterly World Economic Outlook released in April
2015, the IMF forecast that Canada’s real gross domestic product (GDP) would grow 2.2 percent. In the
July World Economic Outlook, the IMF forecast that Canada's real GDP would grow by 1.5 per cent in
2015.
Multifactor productivity (MFP)
Another productivity measure, used by the OECD, is the long-term trend in multifactor productivity
(MFP) also known as total factor productivity (TFP). This indicator assesses an economy’s "underlying
productive capacity ("potential output"), itself an important measure of the growth possibilities of
economies and of inflationary pressures." MFP measures the residual growth that cannot be explained by
the rate of change in the services of labour, capital and intermediate outputs, and is often interpreted as
the contribution to economic growth made by factors such as technical and organizational innovation.
(OECD 2008,11) According to the OECD's annual economic survey of Canada in June 2012, Canada has
experienced weak growth of multi-factor productivity (MFP) and has been declining further since 2002.
One of the ways MFP growth is raised is by boosting innovation and Canada's innovation indicators such
as business R&D and patenting rates were poor. Raising MFP growth, is "needed to sustain rising living
standards, especially as the population ages.
Limited Government
The top federal personal income tax rate remains 29 percent, and the top corporate tax rate has been cut
to 15 percent. Other taxes include a value-added tax and a property tax. The overall tax burden equals 30.6

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percent of total domestic income. Government spending amounts to 40.7 percent of total domestic output,
with small deficits recorded in recent years. Public debt equals about 87 percent of GDP.
Regulatory Efficiency View Methodology
Canada’s highly competitive regulatory framework promotes business formation and operation. With no
minimum capital standards, starting a company requires only one procedure. Flexible labor regulations
enhance employment and productivity growth. Inflation has been modest, but the government controls
virtually all prices for health care services through its mandatory “single-payer” nationalized program.
Open Market View Methodology
Canada’s average tariff rate is 1.5 percent. Imports of dairy products are subject to tariff-rate quotas.
Foreign investment in the telecommunications and airlines sectors is restricted. Negotiations for a
Canada–EU trade agreement were concluded in late 2014. The banking sector remains stable, having
weathered the global financial turmoil with no need for bailouts. The “big six” domestic banks dominate
the sector.
Economical Insurance
It founded in 1871, is a Canadian Property & Casualty insurance company, offering automobile, property,
liability, agriculture, and surety insurance. Its executive offices are located in Waterloo, Ontario, with
regional offices across Canada. The company has a 4.02% market share, measured by direct written
premium in the Canadian Property & Casualty Insurance market as of December 2012. As of 2014, it had
about 1.6 billion in mutual policyholder's equity. It is the 9th largest Property and Casualty insurance
company in Canada, by direct written premium and the 20th largest insurance company in Canada, by
total asset. The firm owns several operating subsidiaries, the largest of which is Economical Mutual
Insurance Company. Other member companies are Perth Insurance Company, Waterloo Insurance
Company, The Missisquoi Insurance Company, and Federation Insurance Company of Canada.

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2.4 Insurance Company Act
S.C. 1991, C. 47
Act current to 2016-03-28 and last amended on 2015-06-23.
There are many act of insurance company. Some acts are given below.
 Transfer of Business and Reinsurance
Restricted transactions
254 (1) except in accordance with this section or an order made under subsection 678.5(1), a company or
society shall not
(a) Cause itself to be reinsured, on an assumption basis, against all or any portion of the risks undertaken
under its policies; or
(b) Sell all or substantially all of its assets
Marginal note: Approval of the Minister
(2) A company or society may, with the approval of the Minister,
(a) cause itself to be reinsured, on an assumption basis, against all or substantially all of the risks
undertaken under its policies, by one or more of the following entities:
(i) a company or society,
(ii) a foreign company that, in Canada, reinsures those risks,
(iii) a body corporate incorporated or formed by or under the laws of a province, if the Superintendent has
entered into satisfactory arrangements concerning the reinsurance with either or both of the body corporate
and the appropriate official or public body responsible for the supervision of the body corporate, or
(iv) an entity that is authorized to reinsure those risks, if the risks were undertaken outside Canada by the
company or society; or
(b) sell all or substantially all of its assets.
Marginal note: Approval of the Superintendent

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(2.01) A company or society may, with the approval of the Superintendent, cause itself to be reinsured,
on an assumption basis, against less than substantially all of the risks undertaken under its policies, by one
or more of the following entities:
(a) a company or society;
(b) a foreign company that, in Canada, reinsures those risks;
(c) a body corporate incorporated or formed by or under the laws of a province, if the Superintendent has
entered into satisfactory arrangements concerning the reinsurance with either or both of the body corporate
and the appropriate official or public body responsible for the supervision of the body corporate; or
(d) an entity that is authorized to reinsure those risks, if the risks were undertaken outside Canada by the
company or society.
Marginal note: Prescribed transactions
(2.1) The approval of the Minister or Superintendent is not required for a prescribed transaction or a
transaction in a prescribed class of transactions.
Marginal note: Procedure
(3) The company or society must, at least 30 days before it applies for the Minister’s or Superintendent’s
approval, publish a notice in the Canada Gazette and in a newspaper in general circulation at or near the
place where the head office of the company or society is situated stating the day on or after which it will
apply.
Marginal note: Information
(4) Where a company or society publishes a notice referred to in subsection (3), the Superintendent may
direct the company or society to provide its shareholders, policyholders and members with such
information as the Superintendent may require.
Marginal note: Report of independent actuary
(4.1) An application for approval under paragraph (2)(a) must, if the Superintendent so requires, be
accompanied by the report of an independent actuary on the proposed reinsurance agreement.
Marginal note: Inspection

19. 19
(5) If a company or society publishes a notice referred to in subsection (3), it must make the agreement
for the transaction that the Minister or Superintendent is asked to approve available at its head office for
the inspection of its shareholders, policyholders and members for at least 30 days after the publication of
the notice and must provide a copy of the agreement to any shareholder, policyholder or member who
requests one by writing to the head office of the company or society.
Marginal note: Superintendent may shorten periods
(6) If the Superintendent is of the opinion that it is in the best interests of a group of policyholders affected
by the transaction that the Minister or the Superintendent is asked to approve, the Superintendent may
shorten the periods of 30 days referred to in subsections (3) and (5
 Classes of Insurance
Restriction to specified classes of insurance
443 (1) A company shall not insure a risk unless the risk falls within a class of insurance that is specified
in the order of the Superintendent approving the commencement and carrying on of business by the
company.
Marginal note: Continuation of certificate limitations
(2) A class of insurance specified in a certificate of registry, issued under Part III of the Canadian and
British Insurance Companies Act, or in any other authorization, that had not expired or been withdrawn
before the coming into force of this Part is deemed to be specified in an order of the Superintendent
approving the commencement and carrying on of business by the company.
Marginal note: Restriction to reinsurance
444 (1) A company may reinsure, but shall not otherwise insure, a risk falling within a class of insurance
specified in the order of the Superintendent approving the commencement and carrying on of business by
the company if the order limits the company to the reinsurance of those risks.
Marginal note: Continuation of certificate conditions
(2) A condition that limits a company to the reinsurance of risks falling within a class of insurance and
that is contained in a certificate of registry issued under Part III of the Canadian and British Insurance
Companies Act, or in any other authorization, that had not expired or been withdrawn before the coming

20. 20
into force of this Part is deemed to be a limitation in an order of the Superintendent approving the
commencement and carrying on of business by the company.
Marginal note: No new composite companies
445 The Superintendent may not make or vary an order approving the commencement and carrying on of
business by a company if the company would as a result be permitted to insure both risks falling within
the class of life insurance and risks falling within any other class of insurance other than accident and
sickness insurance, credit protection insurance and other approved products insurance.
Marginal note: Separate accounts
447 A company that is authorized to insure risks falling within the class of life insurance and risks falling
within one or more other classes of insurance shall maintain separate accounts in respect of each class of
insurance within which it is authorized to insure risks.
Marginal note: Annuities and endowment insurance restricted to life companies
448 Property and casualty companies and marine companies shall not issue annuities or policies of
endowment insurance.
Marginal note: Compensation association
449 (1) Every company that is insuring risks that fall within a class of insurance shall become and remain
a member of any compensation association designated by order of the Minister for that class of insurance.
Marginal note: Designation limitation
(1.1) A compensation association shall not be designated under subsection (1) unless, in the opinion of
the Minister, it has the authority to levy an assessment on each of its members.
Marginal note: Exceptions
(2) Subsection (1) does not apply
(a) to a company that may reinsure but may not otherwise insure risks;
(b) in respect of a class of insurance that, in the opinion of the Minister, is adequately covered by some
other compensation plan.
(c) in respect of the insurance against the loss of, or damage to, property caused by fire, by lightning, by
an explosion due to ignition, by smoke or by breakage of or leakage from a sprinkler, from other fire

21. 21
protection equipment or from another fire protection system by a company that is a member of the Fire
Mutual Guarantee Fund or
(d) in respect of a class of insurance for which the Minister has not designated a compensation association.
 Reinsurance
465 (1) The Governor in Council may make regulations limiting the extent to which a company may cause
itself to be reinsured against risks undertaken under its policies.
Marginal note: Regulation may provide for discretion
(2) A regulation made pursuant to subsection (1) may provide that the Superintendent may, by order,
determine the matters or exercise the discretion that the regulation may specify.
Restrictions
Marginal note: Restriction on fiduciary activities
466 No company shall act in Canada as
(a) an executor, administrator or official guardian or a guardian, tutor, curator, judicial adviser or
committee of a mentally incompetent person; or
(b) a trustee for a trust.
Marginal note: Restriction on deposit taking
467 Except as otherwise permitted by this Act, a company shall not accept deposits.
Marginal note: Restriction on securities activities
468 A company shall not deal in Canada in securities to the extent prohibited or restricted by such
regulations as the Governor in Council may make for the purposes of this section.
Marginal note: Prohibition
468.1 (1) It is prohibited for a company to issue a debt obligation in relation to which the amounts of
principal and interest owing are guaranteed to be paid from loans or other assets held by an entity that is
created and organized for the principal purpose of holding those loans or other assets and with the intention
of legally isolating those loans or other assets from the company, unless
(a) the debt obligation is a covered bond as defined in section 21.5 of the National Housing Act;

22. 22
(b) the company is a registered issuer as defined in section 21.5 of that Act other than one whose right to
issue covered bonds has been suspended; and
(c) the debt obligation is issued under a registered program as defined in section 21.5 of that Act.
Marginal note: Exception
(2) The Governor in Council may make regulations exempting any type of debt obligation from the
application of subsection (1).
Marginal note: Restriction on residential mortgages
469 (1) A company shall not make a loan in Canada on the security of residential property in Canada for
the purpose of purchasing, renovating or improving that property, or refinance such a loan, if the amount
of the loan, together with the amount then outstanding of any mortgage having an equal or prior claim
against the property, would exceed 80 per cent of the value of the property at the time of the loan.
Marginal note: Exception
(2) Subsection (1) does not apply in respect of
(a) a loan made or guaranteed under the National Housing Act or any other Act of Parliament by or
pursuant to which a different limit on the value of property on the security of which the company may
make a loan is established;
(b) a loan if repayment of the amount of the loan that exceeds the maximum amount set out in subsection
(1) is guaranteed or insured by a government agency or a private insurer approved by the Superintendent;
(c) the acquisition by the company from an entity of securities issued or guaranteed by the entity that are
secured on any residential property, whether in favor of a trustee or otherwise, or the making of a loan by
the company to the entity against the issue of such securities; or
(d) a loan secured by a mortgage where

23. 23
2.5 Kinds of Insurance
Marin Insurance
 Hull and Machinery
 Cargo
 P&I Cover
 Other Third Party Liability Coverage
Towers Legal Liability
Ship Builders and Repairers Legal Liability
Terminal Operators Legal Liability
It is important to distinguish between marine policies that are specified perils v all risks. A specified perils
policy is one in which the insurer agrees to indemnify the assured for losses caused by specific perils that
are identified in the policy. The Canadian Hulls (Pacific) Clauses are examples of a specified perils policy.
A loss must be caused by one of the specified perils in order for it to be covered by the policy. Most hull
and machinery policies on commercial vessels are insured on a specified or named perils basis. An all
risks policy, on the other hand, provides much broader coverage. An all risks policy is one in which the
insurer agrees to indemnify the assured “against all risks of loss or damage”. Things that are not covered
by an all risks policy need to be specifically excluded. Most cargo policies and many policies on yachts
and pleasure craft are all risks policies. The assured, also called the insured, is the person who has taken
out the policy and is obliged to pay the premium. 3.2 Additional Assureds. Policies of marine insurance
frequently either name additional assureds or contain a clause that extends the insurance to additional
assureds by description. 3.3 Underwriters. Underwriters are the entities that agree to indemnify the
assured upon the happening of an insured loss. They are also called insurers. Underwriters can be
individuals or corporations. Underwriters at Lloyds are represented by various syndicates who negotiate
and sign policies on behalf of the “names” they represent. It is not unusual for a policy of marine insurance
to have more than one underwriter. In fact, it is usual for there to be more than one. The policy will name
the underwriters and specify the extent of each underwriter’s interest.

24. 24
Life insurance
The foundation of life insurance is the recognition of the value of a human life and the possibility of
indemnification for the loss of that value.
—F. C. Oviatt, Economic place of insurance and its relation to society
Life insurance (or life assurance, especially in the Commonwealth), is a contract between an insurance
policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum
of money (the benefit) in exchange for a premium, upon the death of an insured person (often the policy
holder). Depending on the contract, other events such as terminal illness or critical illness can also trigger
payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses
(such as funeral expenses) can also be included in the benefits. Life policies are legal contracts and the
terms of the contract describe the limitations of the insured events. Specific exclusions are often written
into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud,
war, riot, and civil commotion.
Life-based contracts tend to fall into two major categories:
 Protection policies – designed to provide a benefit, typically a lump sum payment, in the event of
specified event. A common form of a protection policy design is term insurance.
 Investment policies – where the main objective is to facilitate the growth of capital by regular or
single premiums. Common forms (in the U.S.) are whole life, universal life, and variable
life policies.
Automobile insurance
Automobile insurance premiums represent more than fifty percent (50%) of all property and casualty
premiums in Canada. All vehicles by law have to be insured for third party liability at a minimum. Most
drivers also insure themselves against damage to their vehicle or loss to theft or fire. In B.C.,
Saskatchewan and Manitoba automobile insurance is government owned and administered through broker
agencies. Private automotive insurance companies operate in the balance of Canada.

25. 25
Business Insurance
Commercial property insurance refers to insurance policies provided for property having a business
use. In addition to providing coverage for loss, damage and liability issues, on both the premises and
contents, business owners buy protection for the indirect loss of business costs associated with having to
suspend operations while recovering from an incident.
Liability Insurance
The only mandatory insurance coverage on vehicles is liability. This insurance protects others from
damage that might be done by a driver while operating a vehicle. This includes any losses, including
injury, death and property damage. Liability insurance in Canada also includes coverage to protect drivers
against financial losses they might suffer due to their own medical expenses, and the loss of income that
they could incur if injured in an automobile accident while driving. This portion of insurance coverage is
referred to as accident benefits, and can be claimed even in the case of an at-fault accident
Health insurance
In Canada, every province and territory offers a medical insurance plan that covers basic medical care,
including doctor visits and most costs of hospitalization. Some provinces charge premiums for basic health
insurance, while others do not. Many employers offer group health insurance plans that include extended
health and other types of health insurance. Some Canadians purchase additional health insurance on their
own.
Be a smart consumer when we purchase health insurance:
 Check to make sure we are not buying coverage we already have. For example, we may already
have dental coverage through our employer’s plan, or our credit card company may provide
travel medical insurance if we purchased our travel ticket using the card. As with all types of
insurance, some conditions and exclusions apply to health insurance. Read our policy carefully
to know what is and is not covered.
 Find out if there is a deductible or if the amount payable is limited to a maximum percentage of
the overall claim, or a maximum annual amount.
While purchasing travel medical insurance, consider adding trip cancellation insurance and baggage
insurance. These will cover your costs if you have to cancel your trip for specified reasons or if your
baggage is lost or damaged.

26. 26
2.6 ECONOMICAL TREND OF CANADA
CURRENT TRENDS UPDATE — CANADA
Canadian GDP soars 0.6% in January
Latest available: January
Release date: March 31, 2016
Canadian January 2016 GDP jumped by a much stronger than expected 0.6% following a 0.2% increase
in December 2015. The increase benefitted from output in goods-producing industries jumping by 1.2%
in the month following a 0.3% gain in December. Service-producing industries rose by a solid 0.4%, which
doubled the 0.2% gain in December. The rise in January GDP built further onto gains in December and
November of 0.2% and 0.3%, respectively.
Overview and highlights:
 Canadian January 2016 GDP jumped by a much stronger than expected 0.6% following a 0.2%
increase in December 2015.
 Employment increased by 40,600 in March 2016, thereby beating expectations for a 10,000rise.
 The increase in February 2016 retail sales was helped by the motor vehicle component unexpectedly
rising by 1.0% in the month despite earlier indications of a drop in unit sales.
 Housing starts fell by 6.8% to a seasonally adjusted annualized rate of 204,300 in March 2016.
February’s reading was revised upward to 219,100 from the 212,600 initially reported.
 The February 2016 nominal merchandise trade deficit was larger than market expectations for a $0.9
billion shortfall as exports fell more than expected.
 A rebound in gasoline prices alongside seasonal price increases bumped upward the monthly inflation
rate; however, because the increase in gasoline prices was larger a year ago, the annual inflation rate
slipped to 1.3%.
Economy at a glance:
Latest month Previous Month Year Ago Real GDP Jan 0.6 1.5 Industrial production Jan 1.6 0.6
Employment Mar 0.2 0.7
Unemployment rate* Mar 7.1 6.8 Manufacturing Production Jan 1.9 2.6 Employment Mar -1.8 0.5
Shipments Feb -3.3 3.9 New orders Feb -8.1 2.6 Inventories Feb -0.7 0.2 Retail sales Feb 0.4 5.6 Car sales

27. 27
Feb 0.7 9.4 Housing starts (000s) * Mar 204.6 190.7 Exports Feb -5.4 2.1 Imports Feb -2.6 2.3 Trade
balance ($ billions) * Feb -1.9 -1.8 Consumer prices Mar 0.6 1.3 % change from
Canada’s economy generated a whopping 40,600 jobs in
March
Latest available: March
Release date: April 8, 2016
March’s strong gain eased concerns that the pace of job creation was flagging following the back-to-back
declines recorded in January and February. Losses in the natural resource sector continued to accumulate,
although the decline in March was relatively small. The larger decline was in manufacturing where job
losses tallied 32,000 in March, meaning that the 35,000 loss in the first quarter of 2016 more than wiped
out the fourth quarter of 2015’s 25,000 increase. Job creation outside these two sectors was broad based,
with the most notable gains in services including health care and hospitality. Gains were recorded in
Alberta, Ontario, and British Columbia. Alberta’s gain resulted in the number of employed rising in the
first quarter; although, relative to a year ago, there were 5,600 fewer people working. overall retail sales
rose by an impressive 1.5% following the 2.0% jump in January.
Canadian housing starts fell less than expected in March
Latest available: March
Release date: April 8, 2016
Housing starts fell by 6.8% to a seasonally adjusted annualized rate of 204,300 in March 2016. February’s
reading was revised upward to 219,100 from the 212,600 initially reported. Market expectations had been
for a decline to
190,000, but the drop in multi-unit starts in British Columbia following February’s record high was likely
less than what forecasters had penciled in. Homebuilders continue to respond to market conditions with
increased construction in Canada’s hottest housing markets while starts remain soft in regions hit by the
energy price shock.

28. 28
2.7 Role Plays in Development of Canada by Canadian Insurance Company
An insurance company can play important role in development of a country. Canadian insurance plays
role in development of Canada. Now I am going to discuss about them.
1.Contribution to GDP:
In 2015, Canadian insurance provided 115,160 Million 0f chained dollars. It provides 6.983% GDP
among all industries. (Sources: Statistics Canada, CANSIM, table 379-0031.Last modified: 2016-03-31.).
it is a great contribution for a country.
2.Create employments: Generally, an insurance company plays an important role to create
employment. Now we are describing that: -
Table 2.7: Employment in different insurance company
Name of insurance
company
Number of
employees
Name of insurance company Number of
employees
Allstate 40,200(May 2015) Gore Mutual Insurance Company 300
Assumption Life 339 American Financial Group 6700(2015)
Aviva Canada Approx.3000(2011) The Great-West Life Assurance
Company
18,400(2008)
The Co-operators Group
Limited
5,017(2011) Industrial Alliance 5,019
(december2014)
Desjardins Group 45,219 Insurance Corporation British
Columbia
5200
The Empire Life Insurance
company
900 Intact Financial Corporation 11,000
Federated Insurance
company of Canada
370 Manulife Financial Corporation 34,000
employees,63000
agents

29. 29
3. Formation of capital & increase of investment:
Insurance companies receive premium from insured persons. These premium increase national capitals.
By investing these capital, national production increase.
Table 2.7.3 Total Asset invested by different insurance company in Canada
Name of insurance
company
Total Asset
(US$)
Total equity
(US$)
Allstate US$ 110.3 billion 22.304 billion
Desjardins Group 254 billion (2015) ******
Industrial Alliance 35.3009 billion 2.6009 billion
Insurance Corporation
British Columbia
13142 million *******
Intact Financial
Corporation
19.774 billion 4.954 billion
Manulife Financial
Corporation
704,643 million 41,938 million
SSQ Financial Group 11 billion ******
Primerica 2579(2015) SSQ Financial Group 2,000
Standard Life 6500(2016) Sun Life Financial 27000(including
joint venture, as of
Dec 31,2014)

30. 30
2.8 Contribution to GDP: Statistics Canada
Gross Domestic Product at basic prices, by industry:(we have shown only finance &
insurance sector)
Table 2.8 contribution to GDP
GDP provided by Finance & insurances
2011 2012 2013 2014 2015
Millions 0f chained dollars (2007)
100,520 102,324 106,324 110,228 115,160
Finance and Insurance (NAICS 52): Gross domestic product (GDP)
Under this topic we will find information on Gross Domestic Product (GDP) levels and growth in Canada's
Finance and Insurance (NAICS 52) sector. You can use this information to assess the general health of
the subsector and to identify trends in its growth.
 GDP and growth.
 Notes on gross domestic product data.
GDP and growth
The following table shows the provincial GDP for the Finance and Insurance (NAICS 52) sector between
2010 and 2014. The sum of the Provincial GDP table components will not equal the Canadian Economy
level totals due to the different methodology used to create each table source.
Table 2.8.1 contribution to GDP from different province
Gross Domestic Product by province: 2010 – 2014
Finance and Insurance (NAICS 52)
Value in chained 2007 $ (millions) Change %
Province or
Territory
2011 2011 2012 2013 2014 2013-14

31. 31
Alberta 10,849 11,351 10,216 10,485 11,601 10.6%
British
Columbia
11,818 10,921 11,258 11,406 12,171 6.7%
Manitoba 2,831 2,896 3,018 2,770 3,092 11.6%
New
Brunswick
1,423 1,329 1,371 1,401 1,409 0.6%
Newfoundland
and Labrador
887 912 821 860 910 5.8%
Northwest
Territories
104 104 106 110 113 2.4%
Nova Scotia 1,917 1,789 1,829 1,860 1,973 6.0%
Nunavut 34 34 35 38 37 -1.3%
Ontario 52,018 53,187 55,430 50,345 57,600 14.4%
Prince Edward
Island
242 254 234 239 258 8.1%
Quebec 17,805 18,292 18,576 19,061 19,439 2.0%
Saskatchewan 2,169 2,248 2,012 2,110 2,298 8.9%
Yukon
Territory
68 58 66 66 67 0.8%
Notes on gross domestic product data:
The Gross Domestic Product by Industry - Provincial and Territorial (Annual) data in the present section
are maintained by Statistics Canada's Canadian System of National Economic Accounts. The data are
expressed in basic prices and presented in chained 2007 dollars. The process of chaining removes the
effect of changes in price while minimizing distortion over time. In this section data are available for the
years 2010-2014.Gross Domestic Product (GDP) by Industry measures the value of output of an industry
less the value of intermediate inputs required in the production process. In this sense, it is an output-based
measure of economic activity and is commonly referred to as the total value-added of an industry. GDP

32. 32
growth is an important economic indicator. It measures progress or the rate of expansion of the economy's
capacity to produce output (goods and services). It is examined as a measure of the short term stability or
instability of the economy. GDP growth is also reflective of the future consumption possibilities for a
nation and is the main source of improvements to our standard of living over time. Economic growth
occurs from accumulating human capital (knowledge and skills), investing in physical capital (factories,
machinery and equipment) and the implementation of new technologies in the production process. With
benefits to economic growth come costs. One cost to economic growth is that in order to increase the
consumption possibilities for tomorrow, we have to forego some consumption today. To maintain
economic growth, more effort has to be placed on the production of technology and capital in order to
produce goods for future consumption, rather than the production of goods for current consumption. Other
costs may occur from sustaining a high rate of economic growth, such as resource and environmental
degradation. However, the impact that the faster economic growth has on our environment and resources
is not reflected in the measure GDP growth.
2.9 Termination of Insurance Business in Canada of Foreign Insurance Companies
“non-policy financial obligation” means any actual or contingent financial obligation of the
applicant in respect of its insurance business in Canada, other than a policy liability. It includes, without
limitation, chief agency rent obligations, salaries to the chief agent, legal expenses incurred in connection
with the discontinuance of the applicants’ insurance business in Canada, Canadian regulatory expenses,
tax liabilities on income from an applicant’s assets vested in Canada,
“policy liability” means any actuarial and other liability, whether actual or contingent, of the applicant
in respect of its insurance business in Canada, that arises from the terms and conditions of a policy,
including, where applicable, any declared and unpaid policy dividends.
Information Requirements. The applicant is generally expected to provide:
1. audited financial statements in respect often applicant’s insurance business in Canada, as at a date no
more than three months prior to the application Canada, showing no policy liabilities, an d no-policy
financial obligations, together with the related report from the auditor of the applicant for its insurance
business in Canada confirming that the statements present fair financial position of the applicant’s in
Canada (collectively, the “Audited Statements”);2. a report from the actuary of the applicant for its
insurance business in Canada supporting the valuation of the policy liabilities reported
intheAuditeStatements;3. where the Audited Statements show non-policy financial obligations, in the
form of commitments described in the notes to the statements or otherwise. a written description of the
nature and amount of each these obligations (where this description is not contained in the Audited

33. 33
Statements), and. a written confirmation from or her duties and responsibilities, has knowledge of the in
Canada) that has discharged them or provided for them, together a description of how it has done so;4.
proof of publication of the notice described in paragraph 651(c) of the Act;5. written confirmations from
the senior officer that: a. the applicant twill promptly in form OSFI of the nature and amount of any policy
liabilities and non-policy financial obligations that arise after the date of the Audited Statements, until the
Superintendent has, border, authorized the release often applicant’s assets in Canada
(the “Release Order”) 1, b. in the period since the applicant has ceased to issue and renew policies in
respect of its insurance business in Canada, no policy liabilities or non-policy financial obligations have
been removed from the applicant’s
records in respect of it insurance business in Canada on account of having been transferred to the head
office,
2. Assures, as applicable, and the insurance regulators of all provinces and territories in which the Applica
is licensed, have each been directly notified in writing, concurrently with the first publication of the notice
referred to in item 4 above, of the applicant’s intention to seek their lease of its assets in Canada, and. the
applicant has not receive any objections reo in items 4and 5(c) above, or headdresses any objection
received (together with adscription of the manner in which the objection was above arise or have
addressed); an6. where liabilities or obligations referred toing item 5(a) arisen
(including during the course of the application process), a written confirmation from the senior officer that
he applicant has: a. in the case of policy liabilities, discharged them or (together with adscription of how
it has done), and. in the case of non-policy
financial obligations, or provided for (together with a description of how it has done so). Administrative
Guidance1. This Transaction Instruction relates solely to the Act and does not address any provincial or
territorial requirements, or PACICC requirements, apply to the termination of an applicant’s insurance
business in Canada. Canada(see:www.ccir-ccrra.org); and. of membership be reviewed, and that
compensationfundofficialsbeconsulteaccordingly.2 must continue to comply with the Act (e.g., record
keeping, reporting, and appointment of chief agent, actuary and auditor) until the Release Order is made.3.
The Superintendent has the discretion a Release Order if the Superintendent is satisfied that an applicant’s
policy l-financial obligation with in accordance with paragraphs651(a) a(b)of the Act, and that the
publication requirement in paragraph651(c) hasbeenmet4.Subparagraphs 651(a)(i) to (iii) of the Act list
the. transferring (i.e., no the risks undertaken under the related policies to reinsured, on an assumption
basis.5. Subparagraph 651(a)(iv) of the Act allows an applicant to deal with policy liabilities in ways not
contemplated by subparagraphs 651(a)(i) to (iii). In such a The Superintendent is generally satisfied that
an applicant for the purposeofsubparagraph651(a)(iv) where: has issued claims occurring” policies 3, the

34. 34
applicant has satisfied the to believe that no claims will to, among other things, the types of risk of claims
made under those policies. The Superintendent is generally satisfied that an applicant has provided for the
discharge of a policy liability for the purpose of subparagraph 651(a)(iv) where it has: iii. entered into a
written agreement with another financial institution in Canada whereby that institution has undertaken to
discharge, or has guaranteed the discharge of, the liability.
2.10 List of Canadian Insurance Company
This is a partial list of Canadian insurance companies:
Current Insurance Carriers
 Allstate Insurance Company of Canada -Canadian subsidiary of US parent company.
 Assumption Life -based in Moncton, NB, Assumption Mutual Life Insurance Company, doing
business under the name Assumption Life, offers: life insurance, critical illness insurance, financial
services and investment solutions, commercial and individual mortgage loans, group benefit plans,
individual pension plans and more. This mutual life insurance company have been in business since
1903 and is recognized as one of the top places to work for in Atlantic Canada.
 Aviva Canada- Aviva Canada is the second largest Property & Casualty Insurer in Canada with a
market share of 8.7% and Gross Written Premium (GWP) of $3.155B
 Belair direct (Belair Insurance Company Inc.)- providing complete car and home
insurance solutions direct to the consumer in Quebec and Ontario.
 BMO Insurance- Part of BMO Financial Group.
 The Co-operators: Largest Canadian-owned insurance business in Canada.
 National Bank Insurance- National Bank General Insurance is a Property & Casualty insurance
firm that provides automobile and home insurance services directly to Quebec residents under the
National Bank Insurance banner.
 Desjardins Group -Desjardins Financial Security Life Assurance Company is the life and health
insurance arm of Desjardins Group. Desjardins is the 6th largest financial institution in Canada and
2nd largest property and casualty insurance carrier, after it purchased State Farm Canada in 2014.
 Economical Insurance- Founded in 1871, economical Insurance is one of the largest property
and casualty insurance companies in Canada, providing home, automobile and commercial insurance
products to over one million policyholders across Canada. Its head office is located in Waterloo,

35. 35
Ontario, with 17 branches and member companies across the continent providing service to
policyholders and brokers.
 Empire Life -The Empire Life Insurance Company (Empire Life) offers a full range of financial
products and services - including personal life insurance, critical illness coverage, investment options,
group life and health benefits and group RSP plans. Head Office is located in Kingston, Ontario,
Canada.
 Great American Insurance Company- Niche property casualty insurer specializing in Inland
Marine, Property, Employment Practices Liability and other products.
 The Guarantee Company- of North America Founded in 1872, the first Canadian company to
offer fidelity bonds and the largest and oldest Independent Canadian Owned Insurance Company.
Offers construction and miscellaneous surety and specialized insurance products (Director 's and
Officers Liability, Fidelity Insurance and Personal Lines for High Assets individuals.
 The Great-West Life Assurance Company - The Great-West Life Assurance Company is a
life and health insurance company and was founded in 1891 in Winnipeg, Manitoba. Great-West Life
is currently owned by Great-West Lifeco, which is itself a joint-stock corporation traded on the
Toronto Stock Exchange (TSX: GWO). Great-West Lifeco also owns the London Life Insurance
Company, the Canada Life Assurance Company, and Great-West Life & Annuity Insurance
Company and is the largest insurance provider in Canada. The majority owner of Great-West Lifeco
is the Power Corporation of Canada who administer Great-West through the Power Financial
Corporation.
 Intact Insurance Company- Intact Insurance Company of Canada is the largest Property and
Casualty insurer in Canada. Purchased AXA's Canadian Business in June 2011.
 Manulife Financial- Manufacturers Life Insurance Company is a major Canadian insurance
company and financial services provider. Although its global head office is located in Toronto,
Ontario, Manulife has worldwide operations, most notably in the United States and in 19 unique
Asian countries and territories. Manulife Financial is the largest insurance company in Canada, the
second largest in North America and the world's fifth largest, based on market capitalization.
 Medipac Travel Medical Insurance -Medipac Travel Medical Insurance is the largest direct
writer of Travel Health Insurance for Canadians that live the Snowbird (people) lifestyle. Medipac
provides insurance benefits endorsed by the Canadian Snowbird Association and the Royal Canadian
Legion.

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 Missisquoi Insurance Company- The Missisquoi Insurance Company is the oldest Canadian
owned property and casualty insurance company, having been established in 1835 in the Eastern
Townships region of Quebec. It is now part of The Economical Insurance Group.
 National Life
 RBC Insurance
 Red River Mutual - operates in Manitoba & Saskatchewan, headquartered in Altona Manitoba.
 Standard Life- Standard Life is a major employer in Edinburgh, with 8,500 UK employees and
over 12,000 worldwide. Standard Life plc acts as a holding company for the areas within Standard
Life. Since demutualisation, the company structure is quite complex. Standard Life has an excess of
seven million customers worldwide, with five million in the UK. Of these, 2.6 million are with profits
members of the mutual. In 2015, Manulife Financial acquired the Canadian operations of Standard
Life.
 Sun Life Financial- Sun Life Financial is a leading financial services organization in Canada
known primarily as a life insurance company. Today, the company manages assets in excess of $350
billion and has more than 13,000 people on its payroll plus thousands of independent agents
worldwide.
 The Personal Insurance Company - (The Personal) is a property and casualty (P&C) group
insurance company that specializes in home insurance and auto insurance (formerly CIBC Insurance).
 Transamerica Life Canada
 Travelers Canada.
Consolidation of Former Insurance Carriers
 Aetna Canada Assurance - Purchased by Maritime Life in 1999.
 Canada Life Assurance Company- Now part of Great-West Co.- Purchased in 2003.
 Clarica Life Assurance- Formerly known as Mutual Life Assurance Co. Purchased in 2002 by
Sun Life Financial.
 Commercial Union Life Assurance - Purchased by Manulife Financial in 2001.
 Confederation Life Assurance Co. - Receivership in 1995. Canadian business units
purchased by Manulife Financial and Maritime Life.
 Crown Life Assurance Co. - Purchased by Canada Life Assurance in 1998.

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 Imperial Life - Purchased by Desjardins Group in 1994.
 Laurentian Life - Absorbed by Imperial Life in 1993.
 Liberty Health - Purchased by Maritime Life in 2003.
 London Life Insurance Company - Now part of Great-West Co.- Purchased in 1997.
 Maritime Life - Purchased by Manulife Financial (as part of the John Hancock Insurance
acquisition) in 2004.
 Metropolitan Life - Canadian operations purchased in 1998 by Mutual Life (which later became
Clarica Life Assurance).
 Mutual of Omaha - Canadian operations purchased by RBC Insurance in 1998
 New York Life - Canadian operations purchased by Canada Life Assurance Company in 1994.
 North American Life - Merged into Manulife Financial in 1995.
 Royal & Sun Alliance Ins. Co. - Canadian operations purchased by Maritime Life in 2001.
 Unum Provident - Canadian operations purchased by RBC Insurance in 2004.
 State Farm -was purchased by Desjardins Financial Security Life Assurance Company in 2014.
 Westbury Canadian Life - Purchased by RBC Insurance in 2004.
 Zurich Life Insurance of Canada - Canadian group life & health business purchased by
Manulife Financial in 2001.
 Union of Canada Life Insurance- founded in 1863 - Liquidated in 2012.
The insurance business in Canada is controlled by provincial agencies.
2.10 Most Popular Insurance Companies in Canada
Top 5 insurance companies in Canada:
Following list shows the top 5 insurance companies in Canada in terms of total assets. Manulife is the
largest insurance company in Canada and one of the largest life insurers in the world. The company
offers life insurance, health & dental insurance, travel insurance, pension products, annuities, mutual
funds, assets management and other services.

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Table 2.10 top 5 insurance company
Rank Company Total assets (C$b ,
September 30, 2015)
1 Manulife Financial 682.949
2 Power Financial 407.200
3 Sun Life Financial 239.902
4 Fairfax Financial 58.598
5 Industrial Alliance Insurance 51.717
2.11Top 4 Things People Should Know About Life Insurance in Canada
What to Ask before Buying Life Insurance in Canada?
Life insurance is an extremely important part of financial planning, but not many people want to talk
about it. To make this topic more accessible, Insure Eye is laying out the statistical facts and other useful
pieces of information to inform Canadians about life insurance. After discussions with consumers, we
have identified the main questions and concerns of Canadians:
• What amount of life insurance should they choose?
• How much insurance protection do they need if they have children?
• What are the best life insurance companies?
• What kind of life insurance policy do they need?
Question 1: How Much Life Insurance Should They Choose?
If they get Life Insurance in Canada, they want make sure that all essential financial aspects are covered
so they do not become a burden for their family. These aspects can include:
• Income substitution for their family
• Taking care of their children’s education (e.g. university or college costs)
• Paying down assets (e.g. mortgage on your house, car loan)

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• Dealing with outstanding financial debt (e.g. lines of credit, credit card debt)
• Other costs (e.g. funeral)
Figure 2.11: Amount of life insurance
So, how much life insurance coverage do Canadians choose? This data originates from our Insure Eye
Price Comparison tool, free for all Canadians to compare their own insurance costs with those of other
people in similar peer groups. Our data shows that most Canadians choose life insurance under $500k. We
recommend speaking with a knowledgeable insurance broker or insurance representative before making
this big decision. There might be other potential financial responsibilities that they have not calculated. If
they have children, the costs can be much higher than we think – just take a look at the next section. A
separate word on Mortgage Life Insurance: In most cases having separate mortgage insurance is not
recommended. Having enough life and disability insurance can encompass a mortgage, avoiding policies
overlaps.
Question 2: They Have Children – How Much Life Insurance Do They Need?
If they have kids, there are several areas that they need to calculate into their financial planning (see
research published in the Money Sense online journal – link at the end of the article):
• Food
• Clothes
• Health Care (e.g. dental services, braces)
• Personal Care (everything from diapers to deodorant)

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• School and recreation (school supplies, sports, activities etc.)
• Transportation (E.g. public transit or minivan)
• Housing (E.g. larger house with more bedrooms, furniture, additional utilities etc.)
• Child Care (e.g. nanny, daycare, babysitters)
Overall costs add up to $243,660 as the total cost of raising a child to the age 18. This means $1,070 per
month over the course of 19 years. They should consider that this number does not include any post-
secondary education costs. Having several children will obviously increase this amount correspondingly.
Have they calculated these numbers into their life insurance protection?
Question 3: What Are the Best Life Insurance Companies?
This analysis is based on the data from our own independent insurance review platform. We do not
promote any insurance companies, but collect and analyze what other Canadians share about their
insurance providers. All companies are evaluated based on reviews across two dimensions: Customer
Service and Value for Money. According to our data, the four life insurance products which have the
highest ratings are offered by the following providers:
• 4.7 out of 5.0 stars: Primerica Life Insurance Company
• 4.4 out of 5.0 stars: BMO Insurance
• 3.9 out of 5.0 stars: Great-West Life
• 3.9 out of 5.0 stars: Sun life
Question 4: What Type of Life Insurance Do they need?
Figure 2.11.2: Type of Canadian life insurance chosen

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 Term Life: Life protection that will expire at the end of a set term (e.g. after 5, 10, 20 years) and which
does not accumulate any value. It is a pure insurance product: simple and easy to understand.
 Universal Life: A combination of life insurance and an investment component. A portion of your
premiums go into your account, increasing your net worth. You can choose how the investment
component is invested. Universal Life typically comes at a higher cost than a Term Policy.
 Whole Life: One of the most complex life insurance products. Like Universal Life, a Whole Life policy
also has both insurance and investment components. However, they typically offer less flexibility (e.g.
the insurer decides how the investment component is invested). This product is also more expensive than
Term Life insurance.
According to Insure Eye analysis, Term Life is the most popular life insurance protection type in Canada.
Nearly 45% of Insure Eye users, who have Life insurance, report that they have purchased Term Life
insurance. Please speak with a qualified insurance broker or advisor before making any important
decisions associated with such an important topic. This article is provided for educational purposes only.

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CHAPTER THREE: CONCLUSION AND RECOMMENDATION
3.1 Findings and Analysis
Canadian insurance companies play an important role in their economy. After preparing term paper we
found many things that are important to us. such as: -
 In 1860, the first documented insurance policy was sold in Victoria, from here insurance started.
 In Canada, insurance company’s contribution to GDP at large portion.
 We saw that a large number of people employed in insurance company.
 From different province, different amount of GDP come.
 We found present economic condition of Canada.
 Different types of insurance such as life insurance, auto insurance, marine insurance etc.
 Canadian insurance plays importance role in development of their country.
 We found that Manulife Financial is the most popular and largest company. Its asset is 682.949.
 We found many comparisons with Bangladesh. They are more developed than Bangladesh.
 Canadian insurance company follows 1991 Insurance Company Act.

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3.2 Recommendation:
To accelerate the investment and the economic development of Canada must concentrate on the following
factors
 To survey all restrictions of insurance policies to which the insurers and insured would be
benefited.
 Inducing people to take more and more insurance for his or her safety life.
 Increase knowledge of agents.
 Remove illiteracy.
 Eradicate religious superstition.
 Developing mass awareness about insurance.
 Increase savings.
 Raising funds.
 To build up a strong economy.
 Increase the efficiency of the managers.
 Increase the public trust.
By following these recommendations, Canada will be abler to accelerate the investment and the economic
development.

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3.3 CONCLUSION
At the end of the study we can know many things about Canadian insurance business. Insurance
business is an aspiring business. It is the most popular and profitable business in Canada. In 1858
Canadian first started their insurance business. Now a day’s Canadian economic position is very high.
Canada has the 11th
or 15th
largest economy in the world. Among many kinds of insurance, we can know
that life insurance is most popular in Canada. To survey all restrictions of insurance policies to which
the insurers and insured would be benefited. Inducing people to take more and more insurance for his
or her safety life.

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REFERENCES
1. (BCB_Apr10_The_History_Project, 2015)
2. (Canadian-Marketplace-2014, 2014)
3. (ReportCTFNov2013, 2013)
4. (wikipedia, 2001)
5. (insurance_issues_in_atlantic_canada, 2014)
6. (ficGOV, 2010)
7. (company, 2016)
8. (insurance, 2015)
9. (insurance, wekipedia, 2015)
10. (wekipedia, 2016)
11. (heritage foundation, 2016)
12. (justice laws website, 2016)
13. (yobot, 2016)
14. (CANSIM, 2016)
15. (government of canada, 2015)
16. (Authorities, 2014)

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Figure contents
TABLE CONTENTS
ABBREVIATIONS:
B.C- Before Christ
CAIB- Canadian Accredited Insurance Broker
IBABC- Insurance Brokers Association of British Columbia
PR- Puerto Rico
US- United states
ICBC-Insurance Corporation of Baitfish Columbia
B.C.- Baitfish Columbia
Figure page Figure Page
Figure 2.3: present
economic condition
16 Figure 2.11.1: Amount of
life Insurance
43
Figure 2.11.2: Type of
life insurance Chosen
45
Table Page Table Page
Table 2.7.1: Employment in
different insurance company
31 Table 2.7.3: Total asset
invested by different
insurance company
32
Table 2.8.1 contribution to GDP 33 Table 2.8.2 Contribution
to GDP from Different
province
34
Table 2.10: top 5 insurance
company
42

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IAABC-International Association of Animal Baitfish Columbia
MOUC- Memorandum of Understanding Council
EDI- Electronic Data Interface
CPIB- Canadian Professional insurance broker
CSIO- Centre for Study of Insurance Operations
SEMCI- Single-Entry, Multi-Company Interface
CE- Continuing Education