Canada needs increased private domestic investment into longer-term projects, such as infrastructure and renewable energy if it’s to remain competitive in the global economy, finds a report by the Canadian Life and Health Insurance Association (CLHIA).
“It is extremely important that governments continue to focus on the long game and seek every opportunity to collaborate with the industries that can support and bring innovative approaches to Canada’s long-term objectives,” says Frank Swedlove, president of the CLHIA.
The report notes that the long-term nature of infrastructure assets and the predictable long-term cash flows are highly suitable for matching insurers’ long-term liability cash flows and they provide portfolio diversification benefits.
There are various estimates on the amount of money needed for improving infrastructure, but the conclusion is often that more investment is required.
The industry currently holds about $6 billion in infrastructure investments and has a strong desire to invest more.
The CLHIA says it supports recent initiatives by government to increase the number of infrastructure investments, including public-private partnerships.
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