NB insurance industry contributes over $780 million to province’s GDP, and has potential for further growth
MONCTON, April 19, 2012 – With wages 29 per cent above the provincial average, a $781.2 million direct and supporting share of the province’s GDP and a presence in urban and rural communities across the province, the insurance sector is a key component of New Brunswick’s financial services sector – and has the potential to grow even stronger through cooperation of industry stakeholders and government.
These were the findings of INSURECONOMY, a report based on a Conference Board of Canada economic footprint assessment and a study of New Brunswick insurance firms and insurance brokerages conducted by Jupia Consultants Inc. Report partners involved in the study include Invest New Brunswick, Insurance Bureau of Canada and the Insurance Brokers Association of New Brunswick.
“The report quantifies what industry has long known: that it has a substantial economic footprint in the province, one with significant growth potential built on well-paying jobs suited to the skills of the region’s highly educated workforce,” says Bill Adams, Vice President, Atlantic, Insurance Bureau of Canada. “We look forward to working with government and other key stakeholders in realizing the industry’s growth potential, to the benefit of all New Brunswickers.”
The report indicates that the New Brunswick insurance industry is growing its employment faster than all other provinces in Canada by a wide margin since the early 2000s. Already the firms consulted for this report are looking to grow their collective employment by 15 per cent over the next three years.
“We’re encouraged by the report findings,” says Robert MacLeod, CEO of Invest New Brunswick. “With our highly competitive tax environment, our educated and bilingual workforce and all of the other advantages of living in New Brunswick including a lifestyle that is second to none, we are well positioned to explore future growth opportunities for the province.”
According to the report, the insurance industry in New Brunswick is made up of 385 businesses directly employing approximately 5,000 people, in over 80 communities throughout the province.
“We’re excited to share this report with our membership,” says Terry Gaudet, President of the Insurance Brokers Association of New Brunswick. “Our brokers are extremely invested in the communities they work and live in across this province.”
Some other key report findings include:
- The industry directly contributed $440.1 million in 2010 to the provincial economy. When all spinoff effects are included, the total impact rises to $781.2 million.
- Over 385 businesses – insurance providers, brokers and related companies.
- From 2004 to 2010, total employment in the insurance industry across New Brunswick grew by 49 per cent – faster than all other provinces in Canada.
- The insurance industry has one of the largest employment multipliers of any industry in New Brunswick. For every direct job in the insurance carrier sector, three jobs are created across the economy.
- For every dollar of premium paid by a customer, 77 cents worth of GDP is created in the province either directly through the cost of operations (i.e., payroll, facilities, etc.) or indirectly through the supply chain.
This was the first study to consider the insurance industry’s impact on the province’s economy. The study included a survey and interviews with property and casualty insurance firms, health and life insurance companies, insurance brokerages and agencies, and consideration of a Conference Board of Canada economic footprint analysis.
To download a copy of the report, please visit www.insureconomy.ca/nb