The majority of insurance business in Canada is transacted by which type of insurer?

The majority of insurance business in Canada is transacted by private insurers. Private insurers are those companies that operate for profit and are owned by shareholders. They offer a wide range of insurance products, including life, health, property, and casualty insurance, catering to both individuals and businesses.

The dominance of private insurers in the market can be attributed to their ability to innovate and respond quickly to consumer needs, their financial resources for underwriting risks, and the competitive nature of their operations, which often lead to better pricing and service for policyholders. They typically have more extensive distribution channels and marketing strategies compared to government insurers and mutual companies, which helps them capture a larger share of the insurance market.

In contrast, government insurers usually focus on providing specific types of coverage, such as auto insurance in provinces where it's mandated, and often have limited market presence in other types of insurance. Direct writing systems refer to a method by which insurers sell policies directly to consumers, but this does not define the insurer type as such. Mutual companies, while significant, tend to serve a smaller segment of the market compared to private insurers, as they are owned by their policyholders and may not have the same level of capital as their for-profit counterparts. Therefore, private insurers are the major players