Insurance Law in Context

• Author: Denis Boivin
• Pages: 1-3

Insurance is everywhere in Canadian society. Health, employment,

transportation, commerce, industry, communications — all sectors of

activity are affected by insurance. Whether public or private, compul-

sory or voluntary, insurance touches everyone on a daily basis. It affects

the lives of adults, children, governments, associations, partnerships,

and corporations. We all enjoy activities that could not occur without

insurance. We take chances that could not be accepted without insur-

ance. We make purchases that, but for insurance, could not be justi-

fied. We pursue professions, businesses, ventures, and relationships

that would become too costly in the absence of insurance. Where there

are risks, there is a need for insurance — and one cannot live in the

twenty-first century without encountering risk on a daily basis.

The all-encompassing nature of insurance comes at a cost. This

price is paid by all Canadians and not only by those who purchase

insurance products. The tab includes both direct and indirect costs. The

direct costs of insurance are the total premiums paid in a given year by

the consuming public. For example, in 2002, Canadian policyholders

paid more than $70 billion in premiums to private insurance compa-

nies.1Although this figure is high, it does not include the taxes, levies,

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INSURANCE LAW IN

CONTEXT

Part O ne

1 This number is a rough estimate. It was calculated by combining figures sup-

plied by the two main private insurance industries in Canada: (1) life and health

and (2) property and casualty. According to the Canadian Life and Health Insur-

ance Association, Canadians paid a total of $44.6 billion in premiums on exist-