Insurance Industry Business Counts by Employee Size

Figure 14 and Figure 15 represents the number of businesses by employee size in Insurance Carriers and Agencies and Brokerages. Analysis covers both Ontario and the Toronto CMA as of December 2023. The businesses are categorized by employee size, ranging from 1-4 employees to 500+ employees.

In Toronto, the Insurance Carriers’ is notably diverse in terms of business size. Micro-sized businesses, which employ between 1-4 employees, make up 35% of the industry indicating a significant presence of small-scale operations. Meanwhile, medium-sized businesses, with 20-99 employees, also form a considerable portion, representing 28% of the market. The larger businesses, those with 100 or more employees, account for approximately 19.65% of the industry, suggesting that well-established companies play a critical role in driving economic activity within the region.

Agencies and Brokerages in Toronto are predominantly composed of smaller businesses, with 61% falling into the micro-sized category. Businesses with 5-9 employees make up 19% of the industry. Larger entities are relatively rare, indicating a highly fragmented market landscape dominated by numerous small players.

Insurance Carriers in Ontario also shows a high percentage of small businesses, comprising 34% of the industry. However, there is a higher representation of medium to large businesses, those with 20 or more employees, compared to Toronto. This suggests a stronger presence of mid-sized to large companies across the province.

For Agencies and Brokerages in Ontario, the market structure is slightly more varied than in Toronto. While still predominantly small, with 57% of businesses being the smallest size and 23% having between 5-9 employees, the proportion of larger businesses is marginally higher. This points to a more diverse business size distribution throughout Ontario, although it remains an industry characterized by smaller enterprises.

Larger Insurance Carriers contribute significantly to economic stability and growth, providing stable jobs and potentially more career growth opportunities. The presence of these firms in both geographies indicate robust industry health. The structure of the industry, with many small players, might foster innovation and competition, particularly in providing specialized services or leveraging technology to disrupt traditional models.