Canada’s life and health insurers paid out $157 billion in life, health and retirement benefits in 2025, up 10% from the previous year, according to the Canadian Life and Health Insurance Association’s (CLHIA) annual Canadian Life and Health Insurance Facts.
That’s equivalent to more than $430 million a day, up from about $400 million a day in 2024, when insurers paid out a record $143.3 billion.
This year, CLHIA led with the industry’s role as an investor. Insurers held nearly $1.3 trillion in assets in Canada and another $1.6 trillion globally in 2025. Their Canadian holdings included $108 billion in provincial, territorial and municipal bonds, $25 billion in federal government bonds, and $51 billion in Canadian infrastructure across transportation, energy and communications.
“As Canada’s need for investment continues to grow, the industry remains well positioned to provide the long-term capital needed to support that growth,” said Stephen Frank, CLHIA’s president and chief executive.
Prescription drugs remained the largest health benefit, with insurers paying more than $18 billion in 2025. That’s up from $16.6 billion in 2024 and 44% higher than five years earlier. Mental health support reached nearly $1.1 billion, up 160% over five years.
Frank said 27 million Canadians use their health benefits for everyday care, from prescriptions and mental health support to physiotherapy and disability coverage, which he said helps them get care earlier and eases pressure on the public system.
Life insurance benefits totalled $18.3 billion, slightly below the $18.6 billion paid in 2024. Insurers also managed more than $470 billion in private pension assets and paid $12.7 billion in federal and provincial taxes, up from $12.1 billion.
The drug figures match what individual carriers are seeing. GreenShield’s 2026 Drug Trends Report found drug costs on its book rose 9.5% in 2025, driven by diabetes and weight management medications, with semaglutide spending up 47.7%.
For group benefits advisors, the numbers frame the coming renewal season. Drug spending growing far faster than inflation and a 160% five-year rise in mental health claims point to continued pressure on plan costs, even with generic semaglutide reaching the market this year.
The investment emphasis is also worth noting. By leading with infrastructure and government bond holdings, CLHIA is positioning the industry as a source of long-term capital for Canadian growth, a message aimed at policymakers as much as plan members.
