Health Insurance in Canada Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Report Covers Canadian Health Insurance Companies and the Market is Segmented by Product Type (Private, Public), Term of Coverage (Short, Long), and Channel of Distribution (Brokers/Agents, Banks, Direct Purchases, Companies, Other Channels of Distribution). The Report Offers Market Size and Forecast Values for the Canada Health and Medical Insurance Market in (USD) for the Above Segments.

Health Insurance in Canada Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Canadian Health Insurance Market Size

Canada Health and Medical Insurance Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 118.84 Billion
Market Size (2030) USD 157.76 Billion
CAGR (2025 - 2030) 5.83 %
Market Concentration Medium

Major Players

Canada Health and Medical Insurance Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Canadian Health Insurance Market Analysis

The Canada Health And Medical Insurance Market size is estimated at USD 118.84 billion in 2025, and is expected to reach USD 157.76 billion by 2030, at a CAGR of 5.83% during the forecast period (2025-2030).

Canada's healthcare insurance landscape operates under a unique hybrid system where public and private health insurance sectors coexist to provide comprehensive healthcare benefits. Approximately 60% of the Canadian population maintains some form of private health insurance, while about 28% of the country's annual health costs are either covered by private health insurance or paid out-of-pocket. This dual system has evolved to address gaps in public coverage, with private insurers focusing on supplemental health insurance services not covered by the provincial healthcare plan, such as prescription drugs, dental care, vision care, and specialized medical services.


The market has witnessed significant technological transformation, with insurers increasingly embracing digital solutions and innovative service delivery models. Insurance providers are investing heavily in digital platforms and virtual care options to enhance customer experience and streamline operations. This digital evolution has attracted numerous InsurTech startups, with at least 150 companies now operating in Canada, including notable players like League, Dream Payments, and Briza, who are revolutionizing traditional insurance delivery models through technology-driven solutions.


The group health insurance segment continues to dominate the market landscape, with approximately 90% of health insurance being purchased through group health insurance plans. In 2021, group health insurance benefit sales demonstrated robust growth, reaching CAD 1.948 billion, marking a 14% increase from the previous year. This trend reflects the growing importance of employee health benefits as a crucial component of employee compensation packages, with employers increasingly using comprehensive healthcare benefits to attract and retain talent in a competitive labor market.


The industry is experiencing a notable shift toward more comprehensive and integrated health solutions. A prime example is Sun Life's creation of Sun Life Health in 2021, which merged Group Benefits and Lumino Health to provide a more holistic approach to health coverage. This integration trend is accompanied by an increased focus on mental health services, with insurers expanding their coverage to include virtual mental health support, counseling services, and preventive care programs. Currently, about 26 million Canadians have supplemental health insurance, highlighting the growing demand for comprehensive coverage beyond basic provincial health plans.

Segment Analysis: By Product Type

Public/Social Security Schemes Segment in Canada Health and Medical Insurance Market

The public health insurance schemes segment continues to dominate the Canadian health insurance and medical insurance market, holding approximately 66% market share in 2024. This substantial market position is primarily attributed to Canada's robust universal healthcare system, which provides comprehensive coverage through federal, provincial, and territorial government funding. The system covers about 95% of hospital and doctor costs and approximately 70% of total aggregate health spending through government funding, mostly paid to private practitioners. The segment's strength is further reinforced by various social security programs dealing with health, education, unemployment, and family assistance, along with specialized programs like the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) that provide additional health benefits to eligible citizens.

Market Analysis of Canada Health And Medical Insurance Market: Chart for By Product Type

Private Health Insurance (PMI) Segment in Canada Health and Medical Insurance Market

The private health insurance segment is experiencing robust growth in the Canadian health insurance and medical insurance market, projected to grow at approximately 7% during 2024-2029. This growth is primarily driven by increasing demand for supplementary coverage for services not included in the public healthcare system, such as prescription drugs, dental insurance, vision insurance, and paramedical services. The segment's expansion is further supported by employers increasingly offering comprehensive group health insurance plans to attract and retain talent, along with rising awareness among Canadians about the importance of additional health coverage. The introduction of innovative insurance products, digital health solutions, and personalized healthcare services by private insurers is also contributing to the segment's growth trajectory.

Segment Analysis: By Channel of Distribution

Brokers Segment in Canada Health and Medical Insurance Market

The brokers segment continues to dominate the Canadian health insurance and medical insurance distribution landscape, commanding approximately 65% of the market share in 2024. This substantial market presence is attributed to brokers' ability to provide personalized service and expert guidance in navigating complex insurance products. In Canada, consumers increasingly value the expertise and choice that insurance brokers provide, particularly in helping them understand and select from various healthcare plan options. The segment's strength is further reinforced by brokers' adoption of digital technologies and automation tools to enhance customer interaction and streamline the insurance procurement process. Insurance brokers and agents are licensed and regulated by provincial authorities, with some provinces like Ontario having self-governing bodies responsible for licensing and regulation, which adds to their credibility and market position.

Direct Sales Segment in Canada Health and Medical Insurance Market

The direct sales segment is experiencing the most rapid growth in the Canadian health insurance and medical insurance distribution landscape, with projections indicating continued expansion from 2024 to 2029. This growth is primarily driven by the increasing adoption of digital platforms and changing consumer preferences for direct insurance purchases. Insurance companies are actively expanding their direct-to-consumer (D2C) models to reduce reliance on traditional distribution channels. The segment's growth is further accelerated by the emergence of insurtech firms that are creating innovative digital platforms and omnichannel distribution models. These companies are developing sophisticated online portals that enable customers to compare, customize, and purchase individual health insurance policies directly, particularly targeting the micro-to-small business market and individual consumers seeking simplified insurance solutions.

Remaining Segments in Distribution Channel Market

The remaining distribution channels in the Canadian health insurance and medical insurance market include agents, banks, and other alternative channels, each serving distinct market needs. Insurance agents continue to play a vital role in providing personalized service and maintaining long-term client relationships, particularly in complex insurance products. The banking channel, despite regulatory restrictions on selling insurance products in bank branches outside Quebec, is developing innovative ways to serve customers through digital platforms and strategic partnerships. Other alternative channels, including insurtech platforms and specialized distribution networks, are emerging as important players in the market by offering innovative solutions and reaching previously underserved market segments through technological integration and specialized service offerings.

Canadian Health Insurance Industry Overview

Top Companies in Canada Health and Medical Insurance Market

The Canadian health and medical insurance landscape is characterized by continuous innovation and strategic evolution among major players like Manulife, Sun Life Financial, Great West Life, Blue Cross Canada, and Green Shield Canada. Insurance providers are increasingly focusing on digital transformation initiatives to enhance customer experience, with widespread adoption of AI-powered underwriting, virtual health platforms, and integrated wellness solutions. Companies are expanding their product portfolios to include comprehensive mental health coverage, personalized medicine programs, and innovative group benefit solutions. The industry demonstrates strong operational agility through the development of multi-channel distribution networks, combining traditional broker relationships with direct-to-consumer platforms and digital engagement tools. Strategic partnerships with healthcare providers, technology companies, and wellness platforms have become instrumental in delivering value-added services and expanding market reach.

Consolidated Market Led By Established Players

The Canadian health insurance market exhibits a consolidated structure dominated by large, well-established domestic insurance conglomerates with extensive distribution networks and strong brand recognition. These major players leverage their comprehensive product portfolios, established relationships with healthcare providers, and significant financial resources to maintain their market positions. The market demonstrates high barriers to entry due to stringent regulatory requirements, capital-intensive operations, and the need for extensive distribution networks, which favor incumbent players with established infrastructure and expertise.


The industry has witnessed strategic consolidation through mergers and acquisitions, particularly focused on expanding digital capabilities and enhancing service offerings. Insurance providers are actively acquiring insurtech companies and digital health platforms to strengthen their technological capabilities and improve customer engagement. Market leaders are also pursuing strategic partnerships and joint ventures to expand their geographical presence and enhance their product offerings, particularly in emerging areas such as virtual healthcare and personalized insurance solutions.

Innovation and Digital Transformation Drive Success

Success in the Canadian health insurance market increasingly depends on providers' ability to leverage technology for operational efficiency and enhanced customer experience. Incumbent players must focus on developing integrated digital platforms that offer seamless customer journeys, personalized insurance solutions, and value-added health management services. Companies need to invest in data analytics capabilities to improve risk assessment, develop innovative products, and deliver personalized wellness programs while maintaining strong relationships with healthcare providers and distribution partners.


Market contenders can gain ground by focusing on niche market segments, developing specialized products for underserved populations, and leveraging digital technologies to reduce operational costs. The industry faces moderate substitution risk from public healthcare coverage, necessitating clear value proposition differentiation through supplementary benefits and innovative services. Regulatory changes regarding digital health services, data privacy, and insurance distribution channels will continue to shape competitive dynamics, requiring providers to maintain agile compliance frameworks while pursuing innovation. Success will increasingly depend on balancing traditional insurance expertise with digital capabilities while maintaining strong relationships with employers, healthcare providers, and distribution partners.

Canadian Health Insurance Market Leaders

  1. Manulife

  2. Sun life Financial

  3. Ontario Blue Cross

  4. The Canada Life Assurance Company

  5. Group Medical Services

  6. *Disclaimer: Major Players sorted in no particular order
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Canadian Health Insurance Market News

  • In October 2022, The Canada Life Assurance Company launches three new portfolios that offer clients convenience, protection, and value. Three new passively managed funds offer the convenience of an all-in-one managed portfolio, together with the same protection benefits offered by segregated fund policies.
  • In November 2022: Berkshire Hathaway Travel Protection (BHTP), a leading travel insurance provider in North America, announced its partnership with Canada-based SoNomad to offer travel medical insurance. The soNomad Travel Medical Insurance policies are underwritten by the National Liability and Fire Insurance Company in Canada.

Canadian Health Insurance Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET DYNAMICS AND INSIGHTS

  • 4.1 Market Overview
  • 4.2 Market Dynamics
    • 4.2.1 Drivers
    • 4.2.2 Restraints
    • 4.2.3 Insights on Various Regulatory Trends Shaping the Market
  • 4.3 Brief on Health Insurance Premiums and Study on the Effect of Medical Trend Rate on Health Plans
  • 4.4 Role of Private Health Insurance Service Providers in Serving the Healthcare Needs of Canadians
  • 4.5 Insights on the Private Health Insurance Premiums Growth by Type of Coverage and Duration of Plans
  • 4.6 Industry Attractiveness - Porter's Five Forces Analysis
  • 4.7 Impact of COVID-19 on the Market

5. MARKET SEGMENTATION

  • 5.1 By Product Type
    • 5.1.1 Private Health Insurance (PMI)
    • 5.1.1.1 Individual Policy Coverage
    • 5.1.1.2 Group Policy Coverage
    • 5.1.2 Public/Social Security Schemes
  • 5.2 By Term of Coverage
    • 5.2.1 Short-term
    • 5.2.2 Long-term
  • 5.3 By Channel of Distribution
    • 5.3.1 Brokers/Agents
    • 5.3.2 Banks
    • 5.3.3 Direct
    • 5.3.4 Companies
    • 5.3.5 Other Channels of Distribution

6. COMPETITIVE LANDSCAPE

  • 6.1 Overview (Market Concentration and Major Players)
  • 6.2 Company Profiles
    • 6.2.1 Manulife
    • 6.2.2 Sun life Financial
    • 6.2.3 The Canada Life Assurance Company
    • 6.2.4 Ontario Blue Cross
    • 6.2.5 Group Medical Services*
  • *List Not Exhaustive

7. MARKET OPPORTUNTIES AND FUTURE TRENDS

8. DISCLAIMER AND ABOUT US

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Canadian Health Insurance Industry Segmentation

A complete background analysis of the Canada Health and Medical Insurance Market, including the assessment of the economy, market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles, are covered in the report. The Canada Health and Medical Insurance Market is divided into product types, coverage terms, and distribution channels.By product types, the market is segmented into private, and public. By coverage terms, the market is segmented into short, and long, and by distribution channels, the market is segmented into brokers/agents, banks, direct purchases, companies, and other channels of distribution. The report offers market size and forecast values for the Canada Health and Medical Insurance Market in USD for the above segments.

By Product Type Private Health Insurance (PMI) Individual Policy Coverage
Group Policy Coverage
Public/Social Security Schemes
By Term of Coverage Short-term
Long-term
By Channel of Distribution Brokers/Agents
Banks
Direct
Companies
Other Channels of Distribution
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Canadian Health Insurance Market Research FAQs

How big is the Canada Health and Medical Insurance Market?

The Canada Health and Medical Insurance Market size is expected to reach USD 118.84 billion in 2025 and grow at a CAGR of 5.83% to reach USD 157.76 billion by 2030.

What is the current Canada Health and Medical Insurance Market size?

In 2025, the Canada Health and Medical Insurance Market size is expected to reach USD 118.84 billion.

Who are the key players in Canada Health and Medical Insurance Market?

Manulife, Sun life Financial, Ontario Blue Cross, The Canada Life Assurance Company and Group Medical Services are the major companies operating in the Canada Health and Medical Insurance Market.

What years does this Canada Health and Medical Insurance Market cover, and what was the market size in 2024?

In 2024, the Canada Health and Medical Insurance Market size was estimated at USD 111.91 billion. The report covers the Canada Health and Medical Insurance Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Canada Health and Medical Insurance Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Canada Health And Medical Insurance Market Research

Mordor Intelligence provides a comprehensive analysis of the Canadian health and medical insurance landscape. Our expertise spans both public health insurance and private health insurance sectors. We thoroughly examine healthcare insurance systems, including medicare, medicaid, and dental insurance provisions. The report offers detailed insights into medical plan structures, vision insurance offerings, and critical illness insurance programs. It also analyzes individual health insurance trends and the implementation of universal healthcare.

Stakeholders can gain valuable insights through our report PDF, available for download. It covers managed care systems, group health insurance dynamics, and supplemental health insurance markets. The analysis delves into healthcare plan developments, prescription drug insurance policies, and evolving medical coverage standards. Industry professionals can leverage detailed data on healthcare benefits, commercial health insurance trends, and employee health benefits to make informed decisions. Our research includes both medical insurance innovations and emerging healthcare insurance solutions, providing actionable intelligence for market participants.