Fraser Group’s report shows that total revenues generated by the group insurance industry in Canada in 2016 increased 4.7 per cent compared to 2015, (when they reached $38.6 billion). He points out that group insurance revenue growth in 2016 was higher than that of gross domestic product. Real GDP growth (excluding inflation) was 1.5 per cent.
Fraser says costly medications have driven revenue growth for group insurers in Canada over the past two years. “The major driver of growth nationally in both years was medical benefits (drugs and extended health care services).” Revenues from medical benefits increased 4.8 per cent in 2016 and 5.5 per cent in 2015, he said.