Canadian life and health insurers hit $157bn in 2025 benefits
The $157 billion paid in benefits – the equivalent of more than $430 million every day – breaks down across three pillars: $83.8 billion in retirement benefits, $54.7 billion in health insurance benefits, and $18.3 billion in life insurance payouts.
Drugs, mental health and the healthcare system
Prescription drug coverage remained the single largest component of health benefits, with insurers paying out more than $18 billion in 2025 – a figure that represents 40 per cent of total prescription drug spending in Canada, according to the CLHIA report.
That total has risen 44 per cent over the past five years, driven by demand for specialty medications and increased claims for treatments related to inflammatory conditions, diabetes, asthma and cancer.
Mental health support spending also posted sharp growth, reaching nearly $1.1 billion in 2025 – up 160 per cent over five years. Paramedical claims, which cover physiotherapy, massage therapy and chiropractic services, grew by nine per cent as demand for ongoing physical and mental health maintenance increased. Eleven million Canadians carried disability coverage, receiving $10.5 billion to replace lost wages.
Frank argued that the scale of private health benefits is still underappreciated as part of Canada’s broader healthcare infrastructure. “Most Canadians don’t think of health benefits as part of the healthcare system,” he said. “But when 27 million Canadians use their benefits for everyday care – from prescriptions and mental health support to physiotherapy and disability coverage – they get care earlier, achieve better health outcomes and help ease pressure on the system.”
