Insurance has become an important and prominent aspect of Canada's economy and society. However, it is also an industry that has experienced certain difficulties in recent years. The purpose of this paper will be to provide an overview, assessment and analysis of the Canadian insurance industry. This will include a brief history of the industry, an outline of the growth and size of the industry as well as the characteristics of its top three institutions, an examination of two major issues facing the insurance sector as a whole and an assessment of possible solutions.
HISTORY OF THE CANADIAN INSURANCE SECTOR.
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Though the history of insurance in trade and commerce can be traced back to the fourth century BC, in Canada, insurance contracts were first written through agencies of a number of British companies. The first fire insurance policies were offered in the country in 1809 while the first life insurance policies were offered in 1847 (Introduction to Canadian Financial System, p.225). In general, the primary purpose of the Canadian insurance industry is relatively straightforward. "Providing peace of mind to its policyholders is the primary purpose of Canada's insurance industry" (Statistics Canada, http://142.206.72.67/03/03e/03e_001f_e.htm). .
The Canadian insurance industry is segmented into two sectors. These include life insurance as well as general insurance, which is also known as property and casualty (P&C) insurance (Statistics Canada,http://142.206.72.67/03/03e /03e_001f_e.htm ). "Life insurance protects beneficiaries from the untimely death of an insured person by providing payment to beneficiaries when the insured person dies" (Introduction to Canadian Financial System, p.223). On the other hand, general insurance covers risks and losses associated with material goods and various legal issues. "General policies span a wide range of risks, including natural disasters (e.g., earthquakes and floods), unpredictable losses (e.
