more than numbers

insureconomy

An economic impact and future
growth study of Alberta's
high-value insurance sector

Insurance Matters.

Insurance plays a critical role for the Alberta economy. It touches the lives of
nearly every resident and business across the province.

Benefits Across Alberta

Employment and economic activity in the insurance industry benefits all regions of Alberta. There is at least one registered insurance industry business in 145 Alberta communities.

In total, 1,900 business establishments directly employ 17,500 people. The number of insurance industry businesses in Alberta rose by nearly 22 per cent between 2005 and 2012 – the second fastest growth rate among the provinces in Canada.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Creating Jobs

The insurance industry has one of the largest employment multipliers of any industry in Alberta.  For every direct job in the insurance carrier sector, 4.4 jobs are created across the economy.

Property & Casualty Insurance:
An Economic Engine

Property and casualty (P&C) insurance provides protection for most homes, motor vehicles and commercial enterprises in Alberta and is an important economic driver for the Alberta economy.

The P&C insurance industry in Alberta contributed $757 million to real gross domestic product (GDP) in 2012. The economic multiplier for the industry is 2.3, which means that including the direct, indirect and induced impacts, $1.74 billion in provincial GDP was attributed to the P&C insurance sector in 2012.

 

$1.74 Billion

Total GDP Contribution

$1.52 Billion

 
 

$657 Million

Total Taxes & Levies

$345 Million

 
 

$582 Million

Consumer Spending

$589 Million

 

11,641

Total Employers Supported

11,726

Spending Stays in Alberta

When an Albertan purchases a smartphone or television, buys clothing or goes to the movies, most of the economic activity associated with those purchases leaves the province. Not so with the insurance industry. For every dollar of premium paid by a customer, approximately 80 cents is spent within the province, supporting economic development within Alberta.

Total Jobs Supported for Every
Direct Job in the Industry (2009)

  • Advertising and public relations1.5
  • Legal services1.6
  • Residential building construction1.7
  • Architectural and engineering service1.8
  • Software publishing1.8
  • Scientific R&D services2.0
  • Oil and gas engineering construction2.1
  • Banking services2.5
  • Motion picture and video production2.9
  • Insurance Carriers4.4
  • Meat production manufacturing4.6
  • Basic chemical manufacturing6.9
  • Sources: Statistics Canada Input-Output Tables. 2009.

A Critical Oil & Gas Industry Service

There are over 14,000 business establishments in Alberta directly in the oil and gas supply chain. The P&C insurance industry in Alberta understands the oil and gas industry and has built expertise that supports the insurance needs of the thousands of small and mid-sized firms in the oil and gas supply chain across the province.

Alberta's economy and its vital industries including oil and gas, is supported and well served by a robust and competitive P&C insurance industry.

Alberta's % of National Total Industry group (NAICS)
77%

211113 - Conventional Oil and Gas Extraction(3,525 establishments)

76%

211114 - Non-Conventional Oil Extraction(100 establishments)

79%

213111 - Oil and Gas Contract Drilling(1,282 establishments)

78%

213118 - Services to Oil and Gas Extraction(6,303 establishments)

72%

221210 - Natural Gas Distribution(139 establishments)

64%

237120 - Oil and Gas Pipeline and Related Structures Construction(1,638 establishments)

59%

333130 - Mining and Oil and Gas Field Machinery Manufacturing(305 establishments)

70%

417220 - Mining and Oil and Gas Well Machinery, Equipment and Supplies(660 establishments)

33%

454312 - Liquefied Petroleum Gas (Bottled Gas) Delears(53 establishments)

14%

486110 - Pipeline Transportation of Crude Oil(104 establishments)

60%

486210 - Pipeline Transportation of Natural Gas(72 establishments)

77%

Total Business Establishments(14,181 establishments)

Preventing loss and protecting Albertans

In addition to paying for losses, the P&C insurance industry is working to prevent them. P&C insurers in Alberta and the Insurance Bureau of Canada are working closely with government and local community leaders across the province to develop strategies to deal with the effects of the increasing number of severe weather events resulting from climate change

Learn More About INSURECONOMY

Cover of Report

 For more information
about the economic impact
and future growth of the
insurance industry,
download the
INSURECONOMY report
.

INSURECONOMY Across Canada

The INSURECONOMY reports present the results of economic impact and future growth study of a province’s insurance sector. The reports summarize a review of the industry, undertaken by the Conference Board of Canada and Jupia Consultants.