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Québec’s financial sector has recorded a growth of almost 4% in 2016



20 June 2017 13:30

Photo : Freepik

Thefinancial markets Authority has published recently the annual Report on financial institutions in 2016 in which the regulator presents an overview of the industry and the various challenges to the market players. It highlights also the actions taken by the Authority to respond effectively and in collaboration with stakeholders.

«This report provides the overall financial picture of each of the segments and provides the data to assess the financial situation and the scope of the operations of the associated institutions, excluding banks. In this regard, the Authority raises a notch the level of transparency by publishing, for the first time the solvency ratio of the insurance companies on an individual basis, » said Louis Morisset, president and CEO of the Authority.

A weight major economic

The first lesson of this report is on the health of the financial sector in quebec. In 2016, in fact, the industry grouping finance-banks-insurance accounted for 6.5% of the gross domestic product (GDP), representing a contribution of $ 20.7 billion dollars to the economy of the province.

For fiscal year 2016, the growth of the sector has been 3.9 %. A sign of its vitality, the latter has experienced an average annual growth of 3.5% over the past five years, while the quebec economy grew by an average of 1.4% for the same period.

Alone, the sector of deposit-taking institutions and insurance companies account for 80% of this contribution. Québec accounts for over 17.3% of the canadian industry » Finance and insurance «.

Nearly 150,000 jobs

A slight decrease from 2011, about 147 000 people work in the sector » Finance and insurance «, which represents 4.1 % of all jobs in the province in 2016. This decrease may in part be explained by a certain consolidation of the sector, resulting, for example, corporate reorganizations, mergers and acquisitions as well as partnership agreements.

With more than 47 600 employees, the Desjardins group is the largest employer in the financial sector in Quebec.

Of the technological challenges growing

Technological issues pose significant challenges to all actors in the market, contributing in particular to the emergence of new risks. In the Face of the rise of Fintech, but also of the collaborative economy., the Authority therefore wishes to work jointly with the market participants and the governmental authorities so that the framing remains optimal while continuing to adequately protect consumers.

On this point, the Authority has established a working Group on the Fintech, which the steering committee coordinates the work of the advisory Committee on technological innovation, from the Lab, Fintech and various building specialists. In addition, the Authority chair, and contributes to the sandbox regulatory established by the canadian securities administrators (CSA).

The climate : a key challenge

The environmental issues related in particular to natural disasters and climate change have captured the attention of the insurance industry of damages in 2016. Given the growing magnitude of these phenomena, the Authority has made it a key issue in its strategic Plan 2017-2020.

Finally, the Authority has continued to work with organizations and regulators, national and international in order to maintain a dialogue and collaborative with all parties concerned. On this point, the Authority plays an active role within the canadian Council of regulators in insurance, theinternational Association of controllers in the insurance and of theInternational Association of Deposit Insurers.

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