Brokers should give themselves a well-deserved pat on the back, as recent figures released by Statistics Canada show that insurance professionals may well be instrumental in lifting Canada out of recession.
Although the economy declined for first two quarters of 2015 and entered a recession for the first time in six years, analysts now feel that the setback may have already passed.
Analysts note that June signaled a rebound from the dismal months before it, and insurance was one of the main drivers of that recovery. The finance and insurance sectors grew by 0.7% in June while most other industries lagged, according to Statistics Canada.
“The broader category has actually been one of the strongest in the past year, so the gain we saw in June doesn’t appear to be a one-off,” Douglas Porter, economist at BMO, told The Globe and Mail.
In addition to brokers’ economic contributions domestically, the industry is also helping Canada to remain competitive globally. Finance and insurance services represent Canada’s largest and fastest growing exports, according to a Conference Board of Canada report released earlier this month.
“The reality is that Canada is a dynamic, high-value services economy, and those services are increasingly being sold to the world," said Jacqueline Palladini, a senior economist on global commerce with the Conference Board.
Palladini also notes that the insurance industry’s resiliency also helped buttress Canada’s economy during the global recession since it was able to use its position of strength to make money in foreign markets.
“During the global economic downturn Canada’s financial sector came out a lot better off than a lot of our foreign counterparts, which allowed them to buy up or invest in a lot of companies,” Palladini said.
Files by The Canadian Press
