Ottawa, ON (Mar. 21, 2013) – The Canadian life and health insurance industry sees both challenges and opportunities ahead in a number of the measures announced in today’s federal budget.
There are tax measures that were applied to annuities and loan arrangements involving life insurance policies that we need to examine more closely to determine their impact. “We are hopeful that there will still be opportunities for further consultation before any new measures are put in place,” said Frank Swedlove, President of the Canadian Life and Health Insurance Association.
The industry also welcomed other initiatives, in particular:
- The recognition of the importance of the strong Canadian financial services sector to the economy and the need to promote the sector in international markets.
- The provision of further opportunities for the industry to enhance its long-term investments through the Canadian P3 market.
- The broadening of the residency options for board members to better reflect the global scope of Canadian financial services corporations.
- A greater focus on long-term bond issuances by the Canadian government over the next decade.
“We are pleased that the government clearly recognizes the insurance industry as strong contributors to the Canadian economy and we look forward to working with the government as they move ahead with Canada’s Economic Action Plan,” added Mr. Swedlove.
The Canadian life and health insurance industry provides a wide range of financial security products, including life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance, to almost 27 million Canadians and their dependents. Established in 1894, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada’s life and health insurance business. Visit www.clhia.ca.