Canadian Life and Health Insurance Industry Welcomes Commitment In Budget To Protect Disabled Employees

OTTAWA, March 29, 2012 /CNW/ - The Canadian life and health insurance industry welcomes a number of the measures announced by the government today.

The industry was particularly pleased to see the commitment to introduce legislation to require federally-regulated employers to insure the long-term disability (LTD) plans offered to employees. "This is extremely meaningful for Canadian employees who work for companies under federal jurisdiction. Insuring LTD plans is the only way to fully protect those who become disabled if their employer goes bankrupt," says Frank Swedlove, President of the Canadian Life and Health Insurance Association. "We believe the provinces should adopt similar legislation so all workers are protected."

The industry also appreciates the government's ongoing commitment to implementing Pooled Registered Pension Plans (PRPPs). "When implemented, PRPPs will benefit the millions of Canadians who currently do not have access to a retirement plan in the workplace. The greatest benefit will be for those who work for small and medium-sized businesses," added Mr. Swedlove.

Other measures supported by the industry include:

• the introduction of legislative amendments to allow public sector investment pools to directly invest in Canadian financial institutions;
• the clarification that life annuities are a life insurance product separate from banking; and
• the ongoing commitment to enhance trade and investment opportunities for Canadian business in key markets such as China, India, the EU and the broader Asia Pacific region.

About CLHIA

The Canadian life and health insurance industry provides a wide range of financial security products, including life insurance, annuities (including RRSPs, RRIFs and pensions) and supplementary health insurance, to about 26 million Canadians and their dependents.  Established in 1894, the CLHIA is a voluntary association whose member companies account for 99 per cent of Canada's life and health insurance business.

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