The PwC report was commissed by the Insurance Bureau of Canada (IBC) in 2008.
Findings included the industry:
- Is a major contributor to the Canadian provincial and federal tax regimes with a total tax contribution of $6.2bn, and
- Bears and collects selected taxes and regulatory costs which represent 13.8% of the average insurance policy premium paid by consumers.
The study found the total taxes borne by the industry in 2008 were $4.3 billion (CDN), of which $600,000 was income taxes.
“This means that for each $1 of income taxes the industry paid, it absorbed an additional $5.63 in other taxes,” the report authors stated.
“The other segment of the total tax contribution made by the industry relates to $1.9 billion of taxes collected by industry members in 2008 on behalf of various provincial and federal governments and agencies.”
The study also found the industry is a significant Canadian employer.
In 2008 the domestic P&C industry employed almost 42,000 people, earning total salaries and wages of about $2.4 billion, with an average of $57,000 per employee. The national average salary (for all industries) is $38,000.
Originally published on CITopBroker.com on April 22, 2010