Budget 2026 Widens Insurer Infrastructure Investments
Federal changes to the Insurance Companies Act broaden the infrastructure assets that life and health insurers can hold in Canada.
Updated on Nov. 6, 2026 in Insurance
Budget 2026 amends the Insurance Companies Act and related regulations to broaden the infrastructure investments permitted for life and health insurers. The Canadian Life and Health Insurance Association (CLHIA) issued a statement welcoming the changes on November 5, 2026.
Why it matters
Life and health insurers in Canada held nearly $1.3 trillion in assets domestically in 2025, so changes to what they can invest in could direct a significant share of that capital toward Canadian infrastructure. The changes are expected to create greater opportunities for insurers to fund transportation, energy and communications projects.
Life and health insurers held about $1.3 trillion in assets in Canada and $1.6 trillion globally in 2025, with $51 billion already invested in Canadian infrastructure. The extent of new investment the changes will generate has not been quantified.
The players
Canadian Life and Health Insurance Association (CLHIA)
The CLHIA is the national industry association representing Canada's life and health insurers, and it issued the statement welcoming the budget changes.
The details
Budget 2026 amends the Insurance Companies Act and related regulations to broaden the scope of permitted infrastructure investments for life and health insurers. The CLHIA's statement on November 5, 2026, welcomed the changes, citing support for transportation, energy and communications projects.
Timeline
2025: Canada's life and health insurers held $1.3 trillion in domestic assets and $1.6 trillion globally.
Budget 2026: Federal changes to permitted insurer investments were announced.
November 5, 2026: The CLHIA issued a statement welcoming the infrastructure investment changes.
Market Dynamics
The Budget 2026 changes amend the Insurance Companies Act, widening the infrastructure assets insurers may hold and extending the permissions the Act already sets for insurer investment. This positions insurers as a larger source of long-term capital for Canadian infrastructure at a time when the federal government is prioritizing such projects.
Changes to insurer investment rules could influence the investment products and returns that insurance providers offer to policyholders over time. Savers with life or health insurance policies may see these effects only indirectly, as insurers allocate capital across a broader range of assets.
The takeaway
Budget 2026 gives Canada's life and health insurers wider room to fund infrastructure, which may increase the pool of private capital available for national projects. Readers with insurance policies or retirement savings tied to insurers may want to watch how these investments affect product offerings.
Further reading
For related coverage, see Insurance news for Canada.
