Facts
of the Property and
Casualty Insurance Industry
in Canada 2016
Facts of the Property and Casualty Insurance Industry in Canada 2016 is published by Insurance
Bureau of Canada (IBC). IBC is the trade association representing Canada’s private property and
casualty (P&C) insurance companies. Since 1972, IBC has published Facts to provide a snapshot
of the state of the P&C insurance industry.
The data in Facts 2016 come from several national and international sources, including IBC.
Data are from 2014, 2015 or 2016, depending on when sources released their information.
In some instances, figures may not add up to 100% as a result of rounding. Also, because
sources collect data in different ways, there can be small differences among similar data.
38th edition, 2016 ISSN 1197 3404
© Insurance Bureau of Canada. All rights reserved.
President’s
message
T
he time has come to get serious about
addressing climate change in Canada.
And IBC is ready.
For more than a decade, IBC has been reporting
on a rise in claims as a result of increases in
severe weather events related to climate
change. We shared these alarming figures
with consumers and knocked on the doors of
provincial and federal governments to alert
politicians of the costs their constituents are
facing. We urged government officials to create
a robust culture of resilience.
While our reports garnered accolades from
climate change experts, governments were
focused on other priorities.
Then in May 2015, Albertans elected a new
government on a platform that included flood
mitigation efforts. A few months later, Canadians
elected a new government in Ottawa that
pledged $5.6 billion over the next four years
in “green infrastructure,” including flood
mitigation systems.
IBC has developed a Natural Catastrophe Strategy
for Canada that encourages the industry and
federal government to collaborate on two risks
– flood and earthquake. We’re in discussions
with the federal government on a collaborative
national flood program. And by hosting two
earthquake symposiums – one in British
Columbia in 2014 and another in Quebec in
2015 – we’ve laid the groundwork for earthquake
preparedness.
While IBC’s climate change efforts advance, some
of our auto insurance files remain a challenge.
We have made progress on the Ontario Auto
insurance file, but consumers in the province
are still paying too much for car insurance. Also
in need of reform is auto insurance in Alberta.
The industry is working with both provincial
governments on reforms to save drivers money.
In addition, we are monitoring automobile
innovations and their effect on insurance.
There are certainly challenges ahead, but I remain
optimistic. Canada’s P&C insurance industry is
healthy and strong. Our industry is striving to
meet these new challenges with innovative new
products for our customers’ changing needs.
These are exciting times!
Don Forgeron
President and CEO,
Insurance Bureau of Canada
IBC Facts 2016
1
Contents
Section one
Canada’s P&C insurance industry, all sectors
4 Industry at a glance - updated to 2015
6 Premiums - updated to 2015
8 Insurance dollar - updated to 2015
9 Claims - updated to 2015
10 Taxes and levies
12 Operating expenses - updated to 2015
13 Profit - updated to 2015
16Catastrophic losses - updated to 2015
24Regulation and regulatory issues
Section two
Canada’s P&C insurance industry by line of business
Auto insurance
26 Mandatory insurance
26 Optional insurance
27 “No-fault” insurance
28 What’s mandatory where
40 Premiums and claims
41 Average losses
42Major issues
Home insurance
44 Types of coverage
45 Premiums and claims
45 Major issues
Business insurance
47 Types of coverage
48 Premiums and claims
48 Major issues
Section three
Insurance organizations
50 IBC members
55 IBC offices
56 IBC services
57 Superintendents of insurance
59 Insurance-related organizations
3–24
25–48
49–62
2 IBC Facts 2016
Canada’s P&C
insurance industry,
all sectors
4 Industry at a glance - updated to 2015
6 Premiums - updated to 2015
8 Insurance dollar - updated to 2015
9 Claims - updated to 2015
10 Taxes and levies
12 Operating expenses - updated to 2015
13 Profit - updated to 2015
16Catastrophic losses - updated to 2015
24Regulation and regulatory issues
IBC Facts 2016
1
3
Industry at a glance
42.2% of direct written
premiums were for car
insurance in 2015
Of its $161.7 billion
in total assets, the P&C
insurance industry had
$114.6 billion in
invested assets in 2015
In 2015, Canadian
insurers wrote
$51.9 billion in direct
written premiums for
insurance on consumers’
homes, cars and businesses
$8.2 billion – the
amount the P&C insurance
industry contributed
in taxes and levies to
federal and provincial
governments in 2014
Property claims as a
percentage of total claims have
risen significantly over the
last decade
30.9%
24.4%
The P&C insurance industry employed
122,500 people across Canada in 2015
More than 207 private P&C insurers
actively compete in Canada
More than half of every dollar
of revenue received by insurers
is paid out in claims
51.1% - claims paid
out to policyholders
20.7% - operating
expenses
including employee
compensation
16.0% - taxes and levies
8.2% - profit margin
IBC Facts 2016
5
Premiums
Insurance premiums are determined based on risk. Insurers consider the likelihood of a customer (or a group of
customers with the same set of circumstances) making a claim, and how much those claims will likely cost. The price for
premiums is based, in part, on an insurer’s best estimate of the amount it will be required to pay out in claims on the
policies it wrote in any given year. Insurers pool the premiums of their many policyholders to cover the losses claimed
by the few in that year. Along with covering claim costs, premiums are calculated to cover taxes, operating expenses
and expected profits.
The requirement to estimate future costs is a unique challenge
in the insurance business. Most businesses can calculate the
actual costs of producing and selling a product before the
selling price is determined. However, when setting premiums,
P&C insurance companies can only estimate the costs of the
medical treatments, car repairs or house repairs they will have
to pay in the future.
Consumers often find this confusing and are unsure about what
a premium represents. Many think of their premiums as a bank
account – it is there just for them in case of a loss. But that’s not
how it works.
Insurance companies report premiums in two ways. Direct
written premiums are the total amount of premiums that a P&C
insurance company receives in one year. Net written premiums
are direct written premium amounts plus reinsurance written
premium amounts minus reinsurance ceded premium amounts.
There are more than 207 private P&C insurers actively
competing in Canada to sell insurance policies on homes, cars
and businesses.
In 2015, private Canadian insurers wrote $51.9 billion in direct
written premiums ($47 billion in net written premiums) for
insurance on consumers’ homes, cars and businesses.
6 IBC Facts 2016
Top 20 private P&C insurers by direct written
premiums, 2015
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Company
Intact Group
Aviva Group
Desjardins Group
TD Insurance Group
RSA Group
Wawanesa Mutual Insurance Company
Lloyd's Underwriters
Co-operators Group
Economical Group
Travelers Group
Allstate Group
Northbridge Group
AIG Insurance Company of Canada
Chubb Group
RBC Group
Zurich Insurance Company Ltd.
La Capitale Group
Genworth Financial Mortgage Insurance
Guarantee Company of North America
Green Shield Canada
%
15.59
8.05
8.02
6.02
5.60
5.37
5.28
5.23
3.93
2.91
2.69
2.51
2.27
2.04
1.84
1.84
1.72
1.58
0.89
0.89
Sources: IBC, MSA
Of the $47 billion in net written premiums, 43.9% was for one
line of business: automobile, including commercial vehicle
insurance. (Figures do not include government-owned auto
insurers in British Columbia, Saskatchewan, Manitoba and
Quebec, which exclusively provide the compulsory component
of auto insurance in those provinces.) Personal property,
commercial property and liability made up most of the rest.
Specialized lines of insurance, such as boiler and machinery,
marine and aircraft, and surety and fidelity, make up about 7%
of the business. The smallest portion of the business is accident
and sickness insurance, which a few P&C insurance companies
sell. Most of this type of insurance is sold by life and health
insurers.
Net written premiums (NWP) in $000,000, 1992 to 2015
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Auto NWP
7,763
8,158
8,697
9,403
9,597
Personal
property NWP
2,642
2,803
3,042
3,163
3,246
Commercial
property NWP
1,866
2,062
2,337
2,553
2,658
Liability NWP
1,319
1,298
1,430
1,694
1,867
Other NWP
913
918
975
1,258
1,202
Total NWP
14,502
15,239
16,482
18,071
18,570
9,553
9,686
9,839
10,705
11,281
13,150
15,781
16,415
16,430
16,590
16,758
17,140
18,126
18,977
20,239
20,690
21,089
21,295
20,630
3,281
3,383
3,293
3,429
3,481
3,971
4,452
5,079
5,315
5,621
6,033
6,495
7,013
7,598
8,192
8,565
9,024
9,791
10,187
2,711
2,469
2,434
2,591
2,768
3,909
4,518
4,802
4,820
4,985
4,997
5,001
5,313
5,568
6,014
6,136
6,339
6,621
6,656
1,878
1,823
1,846
1,982
2,194
3,145
4,081
4,357
4,600
4,826
4,766
4,624
4,667
4,726
4,817
4,502
4,731
4,781
4,988
1,185
1,198
1,315
1,471
1,519
3,333
2,581
2,622
2,698
2,943
3,540
3,438
3,068
3,416
3,533
3,758
3,823
4,143
4,547
18,608
18,559
18,728
20,178
21,242
27,507
31,413
33,275
33,864
34,964
36,095
36,698
38,187
40,285
42,794
43,653
45,007
46,632
47,009
Sources: IBC, MSA, SCOR, AMF
Direct written premiums (DWP) by line, 2015
Line of business
Total auto
Auto - private passenger
Personal property
Commercial property
Liability
Specialized
Accident and sickness
Total business
DWP in
$000,000
21,892
18,124
11,055
7,510
5,972
4,099
1,325
51,852
DWP as
% of total
business
42.2
35.0
21.3
14.5
11.5
7.9
2.6
100.0
Sources: IBC, MSA, SCOR, AMF
Net written premiums (NWP) by line, 2015
Line of business
Total auto
Auto - private passenger
Personal property
Commercial property
Liability
Specialized
Accident and sickness
Total business
NWP in
$000,000
20,630
16,969
10,187
6,656
4,988
3,548
999
47,009
NWP as
% of total
business
43.9
36.1
21.7
14.2
10.6
7.5
2.1
100.0
Sources: IBC, MSA, SCOR, AMF
IBC Facts 2016
7
Insurance
dollar
The “Insurance Dollar” graphic shows how insurers
spent each dollar of revenue averaged over seven
years, from 2009 to 2015. More than half of every
dollar received is paid out in claims
Sources: IBC, MSA
51.1% - claims paid out to
policyholders
20.7% - operating expenses
including employee compensation
16.0% - taxes and levies
8.2% - profit margin
8 IBC Facts 2016
Claims
In 2015, Canadian P&C insurers paid out $30.3 billion, or 61%, of insurance company revenues in claims.
A note about terminology in the chart below: Net claims incurred are the total claims cost incurred in the period less any share to be
paid by reinsurers.
Net claims incurred (NCI) in $000,000, 1992 to 2015
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Auto NCI
6,074
6,420
6,892
7,342
7,034
7,221
7,185
7,475
8,443
9,431
10,844
12,028
11,081
10,626
10,968
11,753
12,997
13,472
15,205
14,607
14,731
15,125
15,835
15,277
Personal property NCI
1,907
1,974
1,955
2,003
2,301
2,112
2,523
2,152
2,286
2,316
2,352
2,574
2,921
3,570
3,556
3,842
4,720
5,071
4,566
5,336
5,013
6,161
6,045
5,489
Commercial property NCI Liability NCI
1,532
1,064
1,430
1,004
1,493
1,159
1,504
1,218
1,665
1,449
1,838
1,406
2,089
1,275
1,758
1,438
1,847
1,430
2,031
1,495
2,195
2,085
2,161
2,632
2,033
3,263
3,356
3,071
2,173
2,577
2,589
2,642
3,157
2,726
3,454
2,878
3,276
2,766
4,087
2,977
3,981
2,615
4,699
2,486
3,955
2,526
3,797
3,106
Other NCI
578
661
545
773
761
613
696
659
784
887
2,019
993
864
944
1,052
990
1,404
1,464
1,475
1,560
1,479
1,650
1,970
1,761
Total NCI
11,154
11,490
12,043
12,840
13,210
13,190
13,768
13,483
14,790
16,161
19,494
20,388
20,161
21,568
20,326
21,817
25,003
26,338
27,288
28,567
27,817
30,120
30,330
29,431
Sources: IBC, MSA, SCOR, AMF
Net claims incurred (NCI) by line, 2015
Line of business
Total auto
Auto - private passenger
Personal property
Commercial property
Liability
Specialized
Accident and sickness
Total business
NCI in $000,000
15,277
12,578
5,489
3,797
3,106
1,099
662
29,431
NCI as % of total business
51.9
42.7
18.7
12.9
10.6
3.7
2.2
100.0
Sources: IBC, MSA, SCOR, AMF
IBC Facts 2016
9
Taxes and
levies
Each year, the P&C insurance industry makes significant tax contributions to government tax revenues. In 2014,
Canadian P&C insurers paid taxes and levies totalling over $8.2 billion to federal and provincial governments. About
83% ($6.8 billion) of the industry’s total tax contribution was incurred through the insurance supply chain and was paid
regardless of the industry’s bottom line, while only 17% ($1.4 billion) was paid in income taxes.
The main taxes and levies applied to the P&C insurance
industry are:
•
•
•
•
Retail sales tax on claims and expenses. The P&C insurance
industry paid more than $1.78 billion in goods and services
tax/harmonized sales tax (GST/HST) and provincial sales
tax (PST/QST) applicable to P&C insurance claims. An
additional $337 million in sales taxes related to general
and administrative expenses was incurred as part of daily
operations. Being a GST/HST exempt industry means these
costs are unrecoverable through input tax credits.
Insurance premium tax. Provinces apply this tax, which
is included in premiums, at different rates on different
insurance products. Some jurisdictions have combined this
tax with a fire tax. The fire tax is collected by some provincial
governments to be disbursed to municipalities to support
fire services.
PST/QST on premiums. This is a provincial sales tax collected
from policyholders in Manitoba, Ontario and Quebec.
Health care levy. This levy is paid to most provincial
governments to support the health care system, particularly
to pay the public health system costs for victims of
automobile collisions. Health care levies are included in
the industry’s total tax contribution because they are a
mandatory payment.
Excluding income taxes and the portion of payroll taxes remitted
to governments on behalf of employees, the remaining taxes
and levies accounted for over $5.7 billion or 70% of the total
tax contribution. The impact of these taxes on premiums
varies depending on the insurance product. On a Canadawide basis, these taxes account for 15.1% of the premium for
personal property insurance, 11.2% of the premium for private
passenger auto insurance (includes health care levies), 11.0% of
the premium for commercial liability insurance and 9.9% of the
premium for commercial property insurance.
10
IBC Facts 2016
Federal and provincial taxes and levies payable
in $000,000, 2014
Income taxes
Payroll taxes
Realty and business taxes
Transaction taxes
GST on claims
PST/QST on claims
RST on operating expenses
PST on premiums (Man., Ont., Que.)
Insurance premium taxes
Transaction subtotal
Total taxes
Health levies
Total
1,375.6
1,406.6
36.1
745.2
1,037.8
337.1
1,400.6
1,580.0
5,100.8
7,919.0
304.4
8,223.5
Source: IBC
Recent tax changes
On April 1, 2016, Alberta will increase its insurance premium tax
rate from 3% to 4%.
Canada’s Department of Finance has not made many public
announcements about the OECD’s Base Erosion and Profit
Shifting (BEPS) project to reform the international tax system,
but has made it clear that Canada will be adopting all of the
minimum requirements in the BEPS final report. These changes
could affect Canadian insurers, particularly multinational and
foreign-owned companies.
Provincial premium, premium sales and premium fire tax rates, 2015
Alberta*
British Columbia (auto and property insurance)
British Columbia (excluding auto and property)
Manitoba
New Brunswick
Newfoundland and Labrador**
Northwest Territories
Nova Scotia
Nunavut
Ontario (auto insurance)
Ontario (property insurance)
Ontario (excluding property and auto)
Prince Edward Island
Quebec***
Saskatchewan (auto insurance)
Saskatchewan (hail insurance)
Saskatchewan (excluding auto and hail)
Yukon
Premium tax
rate (%)
3.00
4.40
4.00
3.00
3.00
4.00
3.00
4.00
3.00
3.00
3.50
3.00
3.50
3.48
5.00
3.00
4.00
2.00
Premium sales
tax rate (%)
8.00
8.00
8.00
9.00
-
Premium fire
tax rate (%)
1.25
1.00
1.00
1.25
1.00
1.00
1.00
1.00
* Alberta announced that the insurance premium tax rate will increase to 4% on April 1, 2016.
** Newfoundland and Labrador will increase the insurance premium tax rate to 5% and reintroduce a retail sales tax on premiums at 15% effective July 1, 2016.
*** Insurance premium tax rates include a compensation tax that increased to 0.48% in December 2014.
Source: IBC
IBC Facts 2016
11
Operating
expenses
Operating expenses for P&C insurers include facility
costs, information technology, market research and
employee compensation.
Employee compensation is the largest operating expense. In
2015, the P&C insurance industry employed 122,500 people
across Canada.
Compensation levels in the industry are relatively high
compared with most other sectors in the economy. The average
weekly salary in 2015 was $1,246. This reflects the advanced skill
mix that employees in the P&C insurance industry possess.
Employment in the insurance industry as a whole (which
includes life, health and medical, and P&C) grew by 9.3%
between 2008 and 2014, according to Statistics Canada.
12
IBC Facts 2016
Average weekly wage compared to
benchmark industries, 2015
Mining and quarrying (except oil and gas)
Professional, Scientific & Tech. Services
Insurance Carriers & Related Activities
Public Administration
Information & Cultural Industries
Manufacturing
Hospitals
Credit Intermediation
Educational Services
All Industries
Retail trade
Accomodation & Food Service
1,700.1
1,335.7
1,245.6
1,226.9
1,168.6
1,079.0
1,068.2
1,059.2
1,005.5
952.1
550.6
374.8
Source: Statistics Canada Table 281-0027
Profit
Profit or return on equity in the P&C insurance industry
is cyclical. It has fluctuated around an average of
10.5% since 1975. The 2015 industry return on equity
was 10.0%.
The P&C insurance industry is highly regulated by governments
and is required by law to invest its assets prudently. More than
80% of invested assets are placed in bonds.
Return on equity comes from two revenue streams –
underwriting and investment earnings.
In 2015, underwriting posted gains for the 12th consecutive
year. The 2014 net underwriting revenue was $1.4 billion. Before
2003, underwriting posted losses for 24 years in a row.
On investment, 2014 was a year of relatively low returns of 3.9%.
Return on investment moves in lockstep with the yields for
3- and 5-year Government of Canada bonds, which have fallen
for the last two decades. Investment income for 2014 was
$4.4 billion.
Of its $158.5 billion in total assets, the P&C insurance industry
has $114.4 billion in invested assets. This makes the Canadian
P&C insurance industry a major stakeholder and investor in
the national economy. P&C insurers invest mainly in domestic
government and corporate bonds, and in preferred and
common stocks. These investments produce a steady flow
of income and balance the more variable income from the
underwriting side of the business, which tends to fluctuate
from year to year.
Investments in $000,000 as of December 31, 2015
Bonds
86,426
75.4%
Shares
13,450
11.7%
Mortgages
1,140
1.0%
Real estate
150
0.1%
Term deposits
3,994
3.5%
Other
9,437
8.2%
Total
114,597
100.0%
Sources: IBC, MSA, SCOR, AMF
IBC Facts 2016
13
Return on equity, return on investment and underwriting ratios, 1992 to 2015
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Return on equity
8.5%
9.5%
6.8%
11.7%
13.6%
13.1%
6.8%
6.5%
6.3%
2.6%
1.7%
11.6%
18.1%
17.2%
16.9%
14.1%
6.0%
6.9%
7.6%
8.0%
10.8%
6.9%
9.9%
10.0%
Return on
investment
10.4%
10.7%
8.0%
9.1%
10.3%
10.4%
8.5%
7.3%
9.0%
7.5%
5.4%
6.2%
5.6%
5.9%
5.9%
5.5%
3.9%
4.2%
4.3%
4.2%
3.9%
3.1%
3.9%
3.3%
Earned loss ratio
77.7%
77.1%
75.7%
73.3%
72.7%
71.4%
74.9%
72.6%
75.9%
80.0%
76.9%
69.9%
62.7%
64.7%
59.5%
62.5%
70.3%
69.5%
69.1%
68.2%
64.7%
68.1%
66.6%
63.5%
Operating
expense ratio
32.9%
32.8%
31.3%
30.8%
30.7%
31.2%
32.9%
33.2%
32.7%
31.0%
28.9%
28.6%
28.2%
28.7%
28.1%
28.5%
30.0%
30.0%
30.2%
30.3%
30.6%
30.8%
31.0%
31.4%
Combined ratio
110.6%
109.9%
107.0%
104.1%
103.4%
102.6%
107.8%
105.9%
108.7%
111.0%
105.8%
98.4%
91.0%
93.4%
87.5%
91.0%
100.3%
99.6%
99.4%
98.4%
95.3%
98.9%
97.6%
94.9%
A note about terminology:
Earned loss ratio is the ratio of claims incurred to net premiums earned.
Operating expense ratio is the ratio of operating expenses to net premiums earned.
Combined ratio is the ratio of claims plus expenses to net premiums earned.
When the combined ratio is 100% or more, it signifies an underwriting loss.
When the combined ratio is less than 100%, it signifies an underwriting profit.
Return on equity excludes Lloyd’s
Sources: IBC, MSA, SCOR, AMF
14
IBC Facts 2016
Return on equity (ROE), 1975 to 2015 (%)
11.2
9.9
10.6
8.3
20
15
Average ROE 10.5
10
5
0
1975
1980
1985
1990
1995
2000
2005
2010
2015
Sources: IBC, MSA
Excluding Lloyd’s
Return on investment (ROI) compared with Government of Canada bond yield, 1989 to 2015 (%)
12
P&C ROI
8
Yield for 3–5 year
Government of Canada bonds
4
0
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
Sources: IBC, MSA, Bank of Canada
IBC Facts 2016
15
Catastrophic
losses
Insured losses for a given disaster are deemed catastrophic when they total $25 million or more. Catastrophic losses for
a year are the sum total of insured losses from these natural disasters. Catastrophic losses due to natural disasters have
increased dramatically over the last decade.
In 2015, catastrophic losses plus loss adjustment expenses
accounted for approximately $602 million, a welcome reduction
from the previous six years in a row when insured losses were
close to or more than $1 billion. The year 2013 was a recordbreaker for catastrophic losses, when insurers paid out more
than $3.6 billion, including $1.9 billion as a result of the floods in
southern Alberta. As well, at the end of 2013, a massive winter
storm hit southern Ontario and parts of Eastern Canada. At the
height of power outages, more than 300,000 Greater Toronto
Area residents had no electricity.
Milestone losses of the past decade include the hailstorms in
Alberta during the summer of 2014 that cost insurers
$575 million in insured losses. They also include the Slave Lake
fire that ravaged a remote area of Alberta, causing more than
$780 million in insured losses in the spring of 2011, and the
Toronto rains of 2005 that generated $740 million in claims.
(All figures in this section are in 2015 dollars.)
Before 2013, the record year for insured losses was 1998, the year
that an ice storm occurred in Quebec and Ontario that included
six days of freezing rain, month-long power outages and
$2.2 billion in insured losses.
Catastrophic losses in Canada in $000,000,000, 1983 to 2015
3.0
2.0
1.0
0
1983 1985
1990
Loss + Loss Adjustment Expenses in 2015 dollars
Estimated Trend Line
16
IBC Facts 2016
1995
2000
2005
2010
2015
Source: IBC, PCS Canada, CatIQ, Swiss re, Munich Re, Deloitte
Catastrophic losses by event in $000, 1983 to 2015
The table below shows the steady increase in the number and cost of catastrophic losses in Canada. This is not a Canada-only phenomenon; it is part of a
worldwide trend.
The table includes insured losses by event and annual totals from 1983 to 2008. From 2009 on, it sets out insured losses for the two largest events in the year
and annual totals.
The figures are reported by Property Claim Services Canada (PCS Canada), which tracks insured losses arising from catastrophic events in Canada. Figures
for 2014 and 2015 are also reported by Catastrophe Indices and Quantification Inc. (CatIQ). Insured losses for all events are available through subscription to
PCS Canada and CatIQ.
Date
and place
Event
type
Loss
plus loss
adjustment
expenses
Loss
plus loss
adjustment
expenses in
2015 dollars
1983
July 9, Saskatchewan
Aug. 3, Edmonton AB
Total 1983
Storm
Storm
16,385
22,060
38,445
35,703
48,069
83,771
1984
April 30, Bruce County ON
Total 1984
Wind
39,066
39,066
81,614
81,614
1985
May 30, Leamington ON
May 31, Barrie ON
Total 1985
Storm
Tornado
16,390
83,922
100,312
32,936
168,643
201,579
1986
May 29, Montreal QC
Total 1986
Hail
45,473
45,473
87,757
87,757
1987
May 29, Montreal QC
July 14, Montreal QC
July 31, Edmonton AB
Total 1987
Hail
Storm
Tornado
24,891
44,678
148,377
217,946
46,003
82,573
274,227
402,802
1988
June 7, Medicine Hat AB
July 6, Slave Lake AB
Aug.16, Calgary AB
Total 1988
Tornado
Flooding
Hail
50,027
21,500
37,127
108,654
88,953
38,229
66,015
193,196
1989
July 20, Harrow ON
Total 1989
Flooding
13,807
13,807
23,368
23,368
1990
July 9, Calgary AB
Total 1990
Hail
16,279
16,279
26,288
26,288
1991
March 27–28, Sarnia ON
July 3, Red Deer AB
Aug. 27, Maskinongé QC
Sept. 7, Calgary AB
Nov. 30, Ontario
Total 1991
Tornado
Storm
Tornado
Hail
Wind
25,407
28,202
17,667
342,745
5,429
419,450
38,847
43,121
27,013
524,052
8,301
641,333
IBC Facts 2016
17
Date
and place
Event
type
1992
July 31, Calgary AB
July 31, Toronto ON
Aug. 28, Alberta
Aug. 28, Elmira and Aurora ON
Sept. 1, Alberta
Oct. 6–7, Avalon NL
Nov. 12–13, southern Ontario
Nov. 12–13, Quebec
Total 1992
Hail
Flooding
Hail
Flooding
Hail
Wind
Wind
Wind
22,078
4,898
5,263
4,348
7,421
8,216
36,437
12,056
100,717
33,275
7,382
7,932
6,553
11,185
12,383
54,915
18,170
151,795
1993
March 13–14, Quebec
July 25–Aug.14, Winnipeg MB
July 29–30, Alberta
July 29, Saskatchewan
July 29–30, Quebec
Total 1993
Storm
Flooding
Hail
Flooding
Flooding
18,447
184,837
8,116
5,383
7,624
224,407
27,283
273,369
12,004
7,961
11,276
331,891
1994
Jan. 16–17, southern Ontario
Jan. 28, southern Ontario
May 18, southern Manitoba
May 22, Saskatchewan
June 18, southern Alberta
Aug. 4, Salmon Arm BC
Aug. 4, Aylmer QC
Aug. 27, southern Manitoba
Aug. 28, southern Ontario
Total 1994
Flooding
Storm
Storm
Storm
Hail
Storm
Tornado
Hail
Storm
13,145
6,250
8,260
8,666
8,263
10,225
6,911
8,112
7,219
77,051
19,419
9,233
12,202
12,802
12,207
15,105
10,209
11,984
10,664
113,824
1995
June 6–9, Calgary AB
July 4, Edmonton AB
July 10, southern Alberta
July 13–15, southern Ontario
July 17, Calgary AB
July 30, southern Manitoba
Aug. 26, Regina SK
Oct. 5–6, Hamilton ON
Total 1995
Flooding
Hail
Hail
Storm
Hail
Storm
Storm
Storm
20,764
14,698
26,389
53,439
52,304
8,468
12,294
16,325
204,681
30,008
21,242
38,138
77,230
75,590
12,238
17,767
23,593
295,806
146,825
119,091
85,222
207,159
209,089
169,594
121,362
295,009
1996
July 16, Winnipeg MB
July 16–18, Calgary AB
July 24–25, Calgary AB
July 19–20, Saguenay QC
18
IBC Facts 2016
Flooding/hail
Hail
Hail
Flooding
Loss
plus loss
adjustment
expenses
Loss
plus loss
adjustment
expenses in
2015 dollars
Date
and place
Event
type
July 23, Outaouais QC
Aug. 8, Ottawa ON
Wind/hail
Flooding
Aug. 8, Outaouais and Estrie QC
Nov. 9, Montreal and Quebec City QC
Total 1996
Flooding
Flooding
Loss
plus loss
adjustment
expenses
Loss
plus loss
adjustment
expenses in
2015 dollars
2,237
1,571
20,257
7,882
76,040
664,047
28,847
11,224
108,286
945,650
1997
Feb. 27, Niagara Peninsula ON
April 6–7, Sudbury ON
July 14–15, Chambly QC
Total 1997
Wind
Flooding
Flooding
23,776
20,558
29,865
74,199
33,297
28,790
41,825
103,911
1998
Jan., southern Quebec
Jan., eastern Ontario
Jan., southern New Brunswick
July 4–9, Calgary AB
Sept. 26–27, Niagara Peninsula ON
Total 1998
Ice storm
Ice storm
Ice storm
Hail
Wind
1,384,100
170,000
20,000
69,742
63,403
1,707,245
1,919,245
235,729
27,733
96,706
87,917
2,367,329
1999
Jan., southern Ontario
June 5, Drummondville QC
July 5–6, Quebec
July 28, Atlantic provinces
Sept. 22, Atlantic provinces
Total 1999
Snowstorm
Hail
Wind
Flooding
Flooding
120,021
20,555
43,321
15,756
15,648
215,301
163,560
28,012
59,036
21,471
21,325
293,403
2000
May 12, southern Ontario
July 7, southern Manitoba
July 14, Pine Lake AB
Aug. 9, Calgary AB
Oct. 30, Sydney NS
Dec. 17, Atlantic provinces
Total 2000
Storm
Storm
Tornado
Storm
Flooding
Wind
128,121
18,559
17,916
28,058
4,010
19,756
216,420
170,022
24,628
23,775
37,234
5,322
26,217
287,200
2001
Feb. 1, Atlantic provinces
Feb. 8, southern Ontario
Feb. 8, Quebec
July 13, Alberta
July 28, Edmonton, AB
Sept. 19, Atlantic provinces
Dec. 14, southwestern British Columbia
Total 2001
Snowstorm
Storm
Storm
Storm
Storm
Flooding
Wind
13,746
54,078
53,843
25,513
23,902
6,362
27,035
204,480
17,794
70,003
69,699
33,026
30,940
8,235
34,996
264,694
IBC Facts 2016
19
Date
and place
Event
type
2002
Jan. 31, southern Ontario
March 9, Ontario
June 8, southern Alberta
June 10, southern Ontario
July 26, southwestern Ontario
Total 2002
Wind
Wind
Flooding
Storm
Storm
34,508
110,989
42,828
53,943
60,060
302,327
43,687
140,512
54,221
68,292
76,036
382,747
2003
March 30–April 1, New Brunswick
March 30–April 1, Newfoundland and Labrador
March 30–April 1, Prince Edward Island
March 30–April 1, Nova Scotia
Aug. 11–12, Alberta
Aug. 11–12, Saskatchewan
Summer, British Columbia
Sept. 28–29, Prince Edward Island
Sept. 28–29, Nova Scotia
Total 2003
Flooding
Flooding
Flooding
Flooding
Wind/hail
Wind/hail
Forest fires
Hurricane
Hurricane
4,695
711
628
18,557
33,565
29,055
200,000
6,665
132,671
426,548
5,782
876
774
22,854
41,336
35,782
246,304
8,208
163,387
525,302
2004
July 2–11, Edmonton AB
July 15, Calgary AB
July 15, Peterborough ON
Sept. 9, eastern Ontario
Total 2004
Hail
Hail
Flooding
Rainstorm
166,000
21,500
87,303
57,600
332,403
200,722
25,997
105,564
69,648
401,932
2005
June 6–8 and June 17–19, Alberta
June 20–30 and July 1–2, Manitoba
July 5 and Sept. 26, Quebec
Aug. 19, Ontario
Total 2005
Flooding
Flooding
Rainstorm
Wind/rainstorm
300,000
60,000
57,000
625,400
1,042,400
354,953
70,991
67,441
739,959
1,233,344
2006
Feb. 6, British Columbia
Aug. 10, Alberta
Sept. 24, Greater Toronto Area ON
Nov.15–Dec. 15, British Columbia
Total 2006
Storm
Hail
Wind/hail
Storm
6,406
13,593
4,628
133,086
157,713
7,433
15,773
5,370
154,434
183,011
2007
Jan. 5, British Columbia
June 5, Alberta
June 22–24, Manitoba
Summer, Manitoba
July 7, Alberta
July 28–29, Alberta
Aug. 1, Newfoundland and Labrador
Total 2007
Storm
Storm
Storm
Storm
Forest fires
Hail
Wind
16,235
44,621
17,607
47,400
7,376
16,581
6,039
155,859
18,434
50,664
19,991
53,819
8,375
18,826
6,857
176,967
20
IBC Facts 2016
Loss
plus loss
adjustment
expenses
Loss
plus loss
adjustment
expenses in
2015 dollars
Date
and place
2008
Jan. 9, Ontario
April/May, New Brunswick
June 10, several regions in Quebec
July 1, Lethbridge AB
July 9, Swift Current, SK
Aug. 8, Red Deer, AB
Sept., Saskatchewan
Dec. 21, Vancouver, BC
Total 2008
2009
Jan. 6–8, Fraser Valley, BC
Feb. 11–13, Ontario
April 25–27, Ontario
July 11–13, Hamilton and Ottawa ON, Montreal and Mirabel QC
July 24–28, Ontario
Aug. 1–3, Alberta
Aug. 13–15, Manitoba
Aug. 20, southern Ontario
Aug. 23, New Brunswick and Newfoundland and Labrador
Aug. 29, New Brunswick, Newfoundland and Labrador,
and Quebec
Total 2009
2010
March 13, Toronto and Hamilton ON
May 28, Winnipeg, MB
June 5–6, Leamington and Windsor/Essex County ON
June 16–18 southern Alberta and Saskatchewan
June 29, various regions of Alberta and Saskatoon, SK
July 1–3, Swift Current, Wynyard and Hudson Bay region SK
July 12–13, Calgary and southern Alberta
Aug. 22, Calgary AB
Sept. 20–21, Newfoundland and Labrador
Sept. 30–Oct. 1, Ontario and Quebec
Dec., Atlantic provinces
Total 2010
Event
type
Storm
Flooding
Hail
Wind/hail
Hail/windstorm/lightning/
water
Hail/windstorm/lightning/
water
Hail
Winter storm
Flood/water
Winter storm
Wind/thunderstorm
Wind/thunderstorm
Wind/thunderstorm
Wind/thunderstorm
Wind/thunderstorm
Wind/thunderstorm
Hurricane Bill
Tropical Storm Danny
Wind/thunderstorm
Flood/water
Wind/thunderstorm
Flood/water
Hail/flood/windstorm/
lightning
Wind/thunderstorm
Wind/thunderstorm
Hail/windstorm/lightning/
water
Hurricane Igor
Flood/windstorm/
lightning/water (remnants
of Nicole)
Storm
Loss
plus loss
adjustment
expenses
Loss
plus loss
adjustment
expenses in
2015 dollars
28,017
8,010
125,000
20,500
31,087
8,887
138,694
22,746
132,000
146,461
446,460
495,371
227,900 376,300 252,204
416,430
1,032,782
1,142,921
127,200
138,228
530,000
575,948
1,235,299
1,342,394
IBC Facts 2016
21
Date
and place
Event
type
2011
March 5–7, Ontario and Quebec
April 10–11, Thunder Bay ON and southern and eastern Ontario
April 27–28, Ontario and Quebec
May 14–17, Slave Lake AB
June 2, Manitoba and Saskatchewan
June 7, southern Ontario
June 17–21, Weyburn and Estavan, SK
June 23–24, Ontario and Quebec
July 7, Red Deer, Bergen, Olds, Bowden and Innisfail, AB
July 18–19, Alberta, Manitoba and Saskatchewan
August 15, Saskatoon, Biggar and Warman, SK
Aug. 21, Goderich ON
Aug. 28–30, New Brunswick, Quebec and Ontario
Nov. 27, Alberta
Total 2011
2012
March 2–3, Ontario and Quebec
May 26–29, Thunder Bay ON and Montreal QC
June 25–27, Saskatchewan
July 11–12, Edmonton AB
July 22–23, Hamilton and Ottawa ON and surrounding areas
July 26, southern Alberta (Cardston to Nanton)
Aug. 11, southern Quebec
Aug. 12, region around Calgary AB
Aug. 14, Calgary AB
Oct. 29–31, Ontario and Quebec
Total 2012
22
IBC Facts 2016
Winter storm
Hail/windstorm/lightning/
water
Wind/thunderstorm
Fire
Hail/windstorm/lightning/
water
Hail/windstorm/lightning/
water
Flood/water
Flood/hail/windstorm/
lightning
Hail/windstorm/lightning/
water
Wind/thunderstorm
Flood/hail/windstorm/
lightning
Wind/thunderstorm
Wind/thunderstorm
(remnants of Hurricane
Irene)
Wind/thunderstorm
Windstorm/winter storm/
water
Wind/thunderstorm
Windstorm/hail/lightning/
water
Wind/thunderstorm
Wind/thunderstorm
Wind/thunderstorm
Flood/windstorm/lightning/
water
Wind/thunderstorm
Hail/windstorm/lightning/
water
Wind/thunderstorm
(remnants of Hurricane
Sandy)
Loss
plus loss
adjustment
expenses
Loss
plus loss
adjustment
expenses in
2015 dollars
742,000
783,463
238,500
2,044,397
251,828
2,158,638
259,700
270,157
562,000
584,628
1,460,893
1,519,713
Date
and place
2013
April 11–14, southwestern Ontario
May 28–June 2, parts of Ontario and Quebec
June 19–24, southern Alberta
July 2, Edmonton AB
July 8–9, Toronto and southern Ontario
July 13, Manitoba and Saskatchewan
July 19, central and southern Ontario and southwest Quebec
July 19, Regina SK
July 23, southern Alberta
Dec. 22–26, Ontario, Quebec, New Brunswick, Nova Scotia,
Prince Edward Island and Newfoundland and Labrador
Total 2013
2014
June 17–18, southern Ontario
June 28–July 1, southern Manitoba and Saskatchewan
July 5, Quebec, New Brunswick, Nova Scotia and
Prince Edward Island
July 17, Alberta and Saskatchewan
Aug. 4–5, southern Ontario
Aug. 7–8, Calgary and southern Alberta
Nov. 24–25, Ontario and Quebec
Total 2014
2015
June 11–12, Alberta, Saskatchewan and Manitoba
June 22–23, Ontario
July 21–22, Alberta and Saskatchewan
Aug. 4–5, Alberta
Aug. 29, British Columbia
Total 2015
Event
type
Wind/thunderstorm
Wind/thunderstorm
Wind/thunderstorm
Hail/windstorm/lightning/
water
Wind/thunderstorm
Hail/windstorm/lightning/
water
Wind/thunderstorm
Hail/lightning/water
Hail/windstorm/lightning/
water
Winter storm
Wind/thunderstorm
Wind/thunderstorm
Windstorm/flood/water
(remnants of Arthur)
Hail/windstorm/lightning/
water
Wind/thunderstorm
Wind/thunderstorm
Wind/thunderstorm
Hail/windstorm/lightning/
water
Flood/windstorm/
lightning/water
Hail/windstorm/lightning/
flood/water
Hail/windstorm/flood/
water
Windstorm/water
Loss
plus loss
adjustment
expenses
Loss
plus loss
adjustment
expenses in
2015 dollars
1,827,000
1,883,536
999,500
1,030,429
3,540,388
3,649,944
109,400
110,623
568,900
575,262
1,013,436
1,024,769
349,410
349,410
131,000
131,000
602,390
602,390
Source: 1983 to 2007: IBC, PCS Canada, Swiss Re and Deloitte
Source 2008: IBC, CatIQ
Source 2009, 2011, 2012: PCS Canada, CatIQ
Source 2010 IBC, PCS Canada, CatIQ
Source 2013 to 2015 PCS Canada, CatIQ
IBC Facts 2016
23
Regulation and
regulatory issues
The federal and provincial governments regulate the P&C insurance industry. The provincial governments regulate
market conduct, and the federal Office of the Superintendent of Financial Institutions (OSFI) regulates solvency.
While it is impossible to pinpoint exactly how much the
industry pays per year to comply with regulatory requirements,
it’s estimated to be hundreds of millions of dollars.
and the International Association of Insurance Supervisors, which
is leading the development of the Global Insurance Capital
Standards that will be re-released for comment in mid-2016.
Auto insurance, in particular, is very highly regulated.
The provincial governments determine claims handling,
underwriting and how complaints are managed, and
administer rate approval systems. To enable the industry to
respond to changing market conditions, IBC is advocating for
auto insurance reform in several provinces, including Alberta,
Ontario, and Newfoundland and Labrador.
To better align with international trends and the evolving
expectations of regulators, IBC has revised its Code of Rights and
Responsibilities, and Standards of Sound Marketplace Practice.
All members are urged to adopt the new voluntary code and
standards, and post them on their websites.
Through IBC, the P&C insurance industry also engages with
regulators and the federal government to ensure that new
regulatory initiatives balance the needs of both consumers
and insurers.
Enhancing the efficiency and cost effectiveness of insurance
regulation can also bring significant benefits to consumers by
reducing costs that can result in lower premiums.
A major regulatory change in 2015 was OSFI’s 2015 Minimum
Capital Test Guideline for covering claims as a result of an
earthquake, which took effect in January following an 18-month
consultation with the industry and other stakeholders.
In recent years, standards and guidelines developed by
international bodies have had a greater influence on Canada’s
regulatory system. This is a result of the global financial crisis of
2008, which spurred a revamping of rules worldwide.
Particularly significant is the guidance provided by the G20, a
forum for the governments and central bank governors of 20
major economies; the Financial Stability Board, which monitors
and makes recommendations about the global financial system;
24
IBC Facts 2016
Market conduct – going global
The International Association of Insurance Supervisors’
“Insurance Core Principles” are driving regulatory activity in
Canada. For instance, they are influencing the market conduct
regulation governing how insurance companies treat their
customers. The increased influence of international regulatory
bodies means that regulation of the P&C insurance market in
Canada is becoming more consistent with regulations that are
working around the globe.
IBC monitors global regulations to assess their impact on
Canadian insurers. This involves ensuring that international
regulations are sensitive to the domestic regulatory landscape
and the particulars of the P&C insurance industry in Canada. IBC
also participates in the discussions led by the Global Federation
of Insurance Associations, providing input into the development
of many aspects of international regulations that affect P&C
insurers.
Canada’s P&C
insurance industry
by line of business
26 Mandatory insurance
26 Optional insurance
27 “No-fault” insurance
28 What’s mandatory where
40 Premiums and claims
41 Average losses
42Major issues
Home insurance
44 Types of coverage
45 Premiums and claims
45 Major issues
Business insurance
47 Types of coverage
48 Premiums and claims
48 Major issues
IBC Facts 2016
2
25
Auto
insurance
In the event of an automobile collision, auto insurance
covers the owner of the vehicle, the driver operating the
vehicle with the owner’s consent, passengers, pedestrians
and property. In 2014, auto insurance, which is required by
law in every Canadian province and territory, accounted for
approximately half the insurance written by P&C insurers.
Third-party liability (TPL) coverage protects the insured
driver and/or owner of the vehicle if the motor vehicle injures
or kills someone or damages someone’s property through the
fault of the driver. Third-party liability coverage is required by
law in all provinces, and in some provinces may include direct
compensation property damage (DCPD) coverage.
There are about 109 private P&C insurance companies
competing for auto insurance business in Canada. In addition
to these private insurers, government-owned insurers in British
Columbia, Saskatchewan, Manitoba and Quebec provide the
mandatory component of auto insurance in those provinces.
DCPD covers damage to an insured vehicle and to any property
inside the vehicle when another motorist is responsible for the
collision. It is called direct compensation because drivers collect
from their own insurer, even though someone else is at fault.
DCPD is mandatory in Ontario, New Brunswick, Nova Scotia and
Prince Edward Island.
Mandatory insurance
There are three kinds of mandatory coverage:
Accident benefits (AB) coverage helps people recover
from injuries sustained in a collision. It pays for medical care,
rehabilitation, income replacement and other benefits to aid
the recovery of collision victims, including drivers, passengers
and pedestrians. In the case of a death, this coverage also
provides funeral expenses and survivor benefits. This insurance
is mandatory in all provinces except Newfoundland and
Labrador. In some provinces, it is referred to as “Section B”
benefits.
Accident benefits are paid on a no-fault basis. This means that
the benefits are available to anyone injured in a vehicle collision
regardless of whether he or she was “at fault” for the collision.
See the next page for more detail on “no-fault” insurance.
26
IBC Facts 2016
Uninsured auto coverage protects an insured person if he or
she is injured through the fault of a driver who does not have
auto insurance or is unidentified.
Optional insurance
Collision and comprehensive insurance are optional in all
provinces except Saskatchewan and Manitoba, where both are
mandatory.
Collision coverage pays for the cost of repairing or replacing a
vehicle following a collision with another vehicle or object, such
as a tree, house, guardrail or pothole. Comprehensive coverage
pays for repairs to or replacement of a vehicle for damage
caused by something other than a collision; for example, fire,
theft, vandalism or wind.
“No-fault” insurance
The concept of “no-fault” insurance developed over time as a
way to reduce the legal and administrative costs associated
with having to prove fault in a vehicle collision.
Before “no fault,” insurers required those involved in a collision
to establish which driver was at fault. The insurer of the at-fault
driver would be responsible for covering the losses resulting
from injuries arising from the incident to those who were
not at fault. This process was lengthy and required expensive
investigation and often litigation.
In a pure no-fault car insurance system, if a person is injured or
his or her car is damaged in a collision, the person deals directly
with his or her own insurance company, regardless of who is
at fault.
In most provinces and territories, the person who did not cause
the collision also has the right to sue the at-fault driver for
damages but, in some provinces, only if his or her injuries meet
a prescribed threshold.
Every province offers some degree of no-fault insurance. Two
provinces – Manitoba and Quebec – have pure no-fault systems,
with no right to sue respecting bodily injury or death. Other
provinces use a mix of no-fault and tort-based systems. Some
of them specify accident benefits limits and the right to sue
for additional compensation under certain specified situations,
such as when injuries are determined to be permanent and
serious.
Every province and territory offers some degree of no-fault insurance.
l Pure
l no-fault systems with no right to sue
Mix of no-fault and tort-based systems
IBC Facts 2016
27
What’s mandatory
where
Auto insurance comes under provincial jurisdiction, so the rules are slightly different in each province. The following
charts compare provincial regulations and have been abbreviated for space and edited for consistency and clarity.
The information is for educational purposes only; IBC recommends consulting a qualified professional for further assistance.
A note about terminology: Some provincial acts refer to “spouse” and some to “spouse/partner,” which have different definitions.
Some provinces use the term “unpaid housekeeper,” which is called “homemaker” or “non-earner benefit” in other provinces. “Head
of household” is usually defined as the spouse or partner with the larger income in the previous 12 months. For the full legal
terminology, see the links in the Sources section at the end of each provincial chart.
Quebec
alberta
nun
Comparison of mandatory private passenger auto insurance coverage by province
British Columbia
as of January 1, 2016
sask
bc
Mandatory minimum third-party
liability:
$200,000 available for any one accident; however, if a claim involving both bodily injury
and property damage reaches this figure, payment for property damage will be capped
at $20,000
Medical payments:
Up to $150,000/person
Funeral expense benefits:
$2,500
Disability income benefits:
75% of gross weekly wages to maximum $300/week; 104 weeks for temporary disability,
lifetime for total disability; nothing payable for the first seven days of disability;
homemaker up to $145/week, maximum 104 weeks
Death benefits:
Death following a collision; death of head of household $5,000, plus $145/week for 104
weeks to first survivor, plus $1,000 and $35/week for 104 weeks to each child; death of
spouse/partner of head of household $2,500; death of dependent child, according to age,
maximum $1,500
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes
Right to sue for economic loss
in excess of no-fault benefits?
Yes
Administration:
Government (government and private insurers compete for optional and additional
coverage)
Source:
ICBC Autoplan Insurance,
http://www.icbc.com/autoplan/Documents/autoplan-insurance.pdf
28
IBC Facts 2016
ns
Quebec
alberta
nun
Alberta
as of January 1, 2016
Mandatory minimum third-party
liability:
$200,000 is available for any one accident; however, if a claim involving both bodily injury
and property damage reaches this figure, payment for propertysask
damage will bebc capped
at $10,000
Medical payments:
Up to $50,000/person
Funeral expense benefits:
$5,000
Disability income benefits:
80% of gross weekly wages to maximum $400/week; up to 104 weeks for total disability;
nothing payable for the first seven days of disability; non-earner benefit (unemployed
person 18 years or older) $135/week, up to 26 weeks
Death benefits:
Death of head of household $10,000, plus 20% ($2,000) for each dependent survivor
after first, plus additional $15,000 for first survivor and $4,000 for each remaining survivor;
death of spouse/adult interdependent partner of head of household $10,000; death of
dependent relative, according to age, maximum $3,000; grief counselling up to $400 per
family with respect to death of any one person
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes. If injury is deemed “minor” under provincial legislation, maximum award is $4,956
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Administration:
Private insurers
Sources:
Alberta Superintendent of Insurance Bulletin 11-2014,
www.finance.alberta.ca/publications/insurance/Superintendent-of-Insurance-Bulletin-11-2014.pdf;
Automobile Accident Insurance Benefits Regulations,
www.qp.alberta.ca/1266.cfm?page=1972_352.cfm&leg_type=Regs&isbncln=0779751140;
Alberta Standard Automobile Policy, S.P.F. No. 1,
www.finance.alberta.ca/publications/insurance/standard_automobile_policy_2013.pdf;
Alberta Superintendent of Insurance Bulletin 05-2015,
http://www.finance.alberta.ca/publications/insurance/Superintendent-of-Insurance-Bulletin-05-2015.pdf
IBC Facts 2016
29
ns
Quebec
alberta
sask
bc
Saskatchewan
as of January 1, 2016
Mandatory minimum third-party
liability:
$200,000 is available for any one accident; however, if a claim involving both bodily injury
and property damage reaches this figure, payment for property damage will be capped
at $10,000
If no-fault option selected:
If tort option selected:
Medical payments:
Up to $6,719,606 /person
Up to $26,273/person for noncatastrophic injury, up to $197,056 for
catastrophic injury
Funeral expense benefits:
$10,078
$6,569
Disability income benefits:
90% of net wages based on gross annual
income of maximum $94,539/year; nothing
payable for the first seven days of disability
unless catastrophically injured
Up to two years; $396/week for total
disability, $198/week for partial disability;
maximum $20,592/year
Death benefits:
50% of deceased’s income benefit; minimum
$69,322 to spouse; 5% of calculated death
benefits to each dependent child; if no
spouse, $15,404 to each surviving parent
or child (21 years or older), to maximum
$69,322; death of dependent child $30,809
45% of deceased’s net income; minimum
$59,116 to spouse; 5% of calculated death
benefits to each dependent child; if no
spouse or dependant, estate receives up
to $13,137
Impairment benefits:
Up to $192,561 /person for non-catastrophic
injury, up to $235,186 for catastrophic injury
Up to $13,137/person for noncatastrophic, up to $170,783 for
catastrophic injury
Right to sue for pain and suffering?
Yes
Yes, subject to deductible of $5,000
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Yes
Administration:
Government (government and private insurers compete for optional and
additional coverage)
Sources:
SGI Canada Personal Injury Coverage,
www.sgicanada.ca/sk/individuals/autoextension/features/personalinjury.html;
Your Guide to No Fault Coverage, 2016,
https://www.sgi.sk.ca/pdf/guide_nofault_2016.pdf;
Your Guide to Tort Coverage, 2016,
https://www.sgi.sk.ca/pdf/guide_tort_2016.pdf;
SGI Auto Pak: Policy booklet, 2016,
http://www.sgicanada.ca/sk/pdf/booklets/2016_auto_pak.pdf
30
IBC Facts 2016
Manitoba
as of March 31, 2016
Quebec
alberta
nun
nwt
pei
yukon
sask
bc
ns
newf
ont
nb
Mandatory minimum third-party
liability:
$200,000 is available for any one accident; however, if a claim involving both bodily injury
and property damage reaches this figure, payment for property damage will be capped
at $20,000
Medical payments:
No time or amount limit
Funeral expense benefits:
$8,301 (maximum)
Disability income benefits:
90% of net wages based on gross annual income of maximum $93,000/year; nothing is
payable for the first seven days of disability
Death benefits:
Death any time after injury; benefits for partners depend on wage and age of deceased
and range from $60,914 to $465,000; benefits for dependent children depend on their
age and range from $28,933 to $53,300; disabled dependants receive an additional
$26,649; non-dependent children or parents receive $13,565
Impairment benefits:
Minimum $760/week to maximum $152,281 for non-catastrophic injury; maximum
$240,454 for catastrophic injury
Right to sue for pain and suffering?
No
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Administration:
Government
Sources:
Guide to Autopac,
https://www.mpi.mb.ca/en/PDFs/PolicyGuide2016.pdf;
Personal Injury Protection Plan (PIPP) Guide,
www.mpi.mb.ca/en/Reg-and-Ins/Insurance/Basic-Autopac/PIPP/Pages/pipp_complete_guide.aspx;
Services and Support Guide for Fatality Claims,
https://www.mpi.mb.ca/en/PDFs/SupportGuideFatalityClaims.pdf
IBC Facts 2016
31
Ontario
as of June 1, 2016
Quebec
alberta
nun
nwt
pei
yukon
sask
bc
ns
newf
ont
nb
mb
Mandatory minimum third-party
liability:
$200,000 is available for any one accident; however, if a claim involving both bodily injury
and property damage reaches this figure, payment for property damage will be capped
at $10,000
Medical payments:
Up to $3,500 for minor injury; up to $65,000/person for non-minor and non-catastrophic
injury for up to 5 years; up to $1 million for catastrophic injury
Funeral expense benefits:
$6,000 (if optional indexation coverage is purchased, this amount may be higher)
Disability income benefits:
Income Replacement Benefit: 70% of gross wages to maximum $400/week, minimum
$185/week for 104 weeks (longer if victim is unable to pursue any suitable occupation);
nothing is payable for the first seven days of disability
Non-earner Benefit (disabled unemployed persons, students enrolled in education full
time, or students who completed their education less than one year before the accident
and are not employed): $185/week for 104 weeks; 4-week wait; limit two years. Not
available if the insured is eligible for, and elects to receive, the income replacement or
caregiver benefit
Death benefits:
Death within 180 days of accident (or three years if continuously disabled prior to death);
$25,000 minimum to spouse, $10,000 to each surviving dependant, $10,000 to each
parent/guardian (if optional indexation coverage is purchased, these amounts may be
higher)
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes, if injury meets severity test (called “threshold”), and subject to deductible. Lawsuit
allowed only if injured person dies or sustains permanent and serious disfigurement
and/or impairment of important physical, mental or psychological function. The court
assesses damages and deducts $36,905 ($18,453 for a Family Law Act claim)
Right to sue for economic loss in
excess of no-fault benefits?
Yes. Income replacement award above no-fault benefit is based on net income after
deductions for income tax, Canada Pension and Employment Insurance. Injured person
may sue for 70% of net income loss before trial, 100% of gross after trial; also for medical,
rehabilitation and related costs when injury meets severity test for pain and suffering
claims
Administration:
Private insurers
Sources:
Ontario Automobile Policy,
www.fsco.gov.on.ca/en/auto/forms/Documents/OAP-1-Application-and-Endorsement-Forms/1215E.1.pdf;
Statutory Accident Benefits Schedule (SABS), Insurance Act, O. Reg. 34/10,
www.e-laws.gov.on.ca/html/regs/english/elaws_regs_100034_e.htm;
Financial Services Commission of Ontario: Auto Bulletins,
www.fsco.gov.on.ca/en/auto/autobulletins/Pages/default.aspx
32
IBC Facts 2016
Quebec
alberta
sask
bc
Quebec
as of January 1, 2016
Private Insurance
Mandatory minimum third-party
liability:
$50,000 is available for any one accident; liability limits relate to property damage claims
within Quebec and to personal injury and property damage claims outside Quebec
Public Insurance
Medical payments:
No time or amount limit
Funeral expense benefits:
$5,107
Disability income benefits:
90% of net wages based on gross annual income of maximum $71,500/year; nothing is
payable for the first seven days of disability; indexed
Death benefits:
Death any time after accident; benefits depend on gross annual income multiplied by a
factor between one and five, depending on age of the victim; benefits for spouse range
from $68,148 to $357,500; benefits for dependent child depend on their age and range
from $32,369 to $59,631; if there is no surviving spouse/dependant, parents or estate
receive $54,621
Impairment benefits:
Up to $238,965
Right to sue for pain and suffering?
No
Right to sue for economic loss in
excess of no-fault benefits?
No
Administration:
Bodily injury: government
Property damage: private insurers
Sources:
Quebec Auto Insurance Policy Form Q.P.F. No.1, March 1, 2014,
www.lautorite.qc.ca/files/pdf/formulaires-professionnels/assureur/automobile/qpf_1.pdf;
The Insurance Policy for All Quebecers: Accident Victim,
www.saaq.gouv.qc.ca/en/accident_victim/insurance_policy/index.php;
Accident Victim - Compensation Table, 2016,
http://www.saaq.gouv.qc.ca/en/accident_victim/insurance_policy/compensation_table.php;
Accident Victim - Table of Death Benefits, 2016,
www.saaq.gouv.qc.ca/en/accident_victim/insurance_policy/death_table.php
IBC Facts 2016
33
New Brunswick
as of January 1, 2016
Quebec
alberta
nun
nwt
pei
yukon
sask
bc
ns
newf
ont
nb
Mandatory minimum third-party
liability:
$200,000 is available for any one accident; however, if a claim involving both bodily injury
and property damage reaches this figure, payment for property damage will be capped
at $20,000
Medical payments:
Up to $50,000/person; four-year time limit
Funeral expense benefits:
$2,500
Disability income benefits:
Maximum $250/week; 104 weeks for partial disability, lifetime for total disability; must be
disabled for at least seven days to qualify; unpaid housekeeper $100/week, maximum 52
weeks
Death benefits:
Death within 180 days (or two years if continuously disabled prior to death); death of
head of household $50,000, plus $1,000 to each dependent survivor after first; death of
spouse/partner $25,000; death of dependant $5,000
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes. If injury is deemed “minor” under provincial legislation, maximum award is $7,650.56
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Administration:
Private insurers
Sources:
New Brunswick Standard Owner’s Policy N.B.P.F. No.1,
http://0101.nccdn.net/1_5/1c2/1a0/1a9/StandardOwnersPolicy.pdf (Effective October 1, 2010);
Injury Regulation, NB Reg 2003-20,
www.canlii.org/en/nb/laws/regu/nb-reg-2003-20/106597/nb-reg-2003-20.html;
Financial and Consumer Services Commission. Notice Re: Annual Indexation PDF,
http://0101.nccdn.net/1_5/0b5/1e0/36b/January-2016-Annual-Indexation-Notice.pdf;
Financial and Consumer Services Commission: Automobile Insurance,
http://fcnb.ca/automobile-insurance.html
34
IBC Facts 2016
mb
Nova Scotia
as of January 1, 2016
Quebec
alberta
nun
nwt
sask
bc
ns
newf
Mandatory minimum third-party
liability:
$500,000 is available for any one accident
Medical payments:
Up to $50,000/person; four-year time limit (Consumers have option to purchase
additional coverage)
Funeral expense benefits:
$2,500
Disability income benefits:
Maximum $250/week; 104 weeks for partial disability; lifetime for total disability; must be
disabled for at least seven days to qualify; unpaid housekeeper $100/week, maximum
52 weeks
Death benefits:
Death within 180 days after accident (or two years if continuously disabled prior to
death); death of head of household $25,000, plus $1,000 to each dependent survivor after
first; death of spouse/partner $25,000; death of dependant $5,000
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes. If injury is deemed “minor” under provincial legislation, maximum award is $8,385
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Administration:
Private insurers
Sources:
Nova Scotia Standard Automobile Policy NSPF No.1, 2013,
www.novascotia.ca/finance/site-finance/media/finance/SPF1-64103-01_2013.pdf;
Automobile Insurance Contract Mandatory Conditions Regulations,
www.novascotia.ca/just/regulations/regs/imandcon.htm;
Office of the Superintendent of Insurance: Bulletins (Nova Scotia),
http://www.novascotia.ca/finance/site-finance/media/finance/insurance/Cap_Bulletin_-_Jan_2016.pdf
IBC Facts 2016
35
Quebec
alberta
nun
nwt
pei
yukon
Prince Edward Island
as of January 1, 2016
Mandatory minimum third-party
liability:
$200,000 is available
however,
if a claim involving
both bodily
injury
sask for any one accident;
bc
ns
newf
ont
and property damage reaches this figure, payment for property damage will be capped
at $10,000
Medical payments:
Up to $50,000/person; four-year time limit
Funeral expense benefits:
$2,500
Disability income benefits:
Maximum $250/week; 104 weeks for partial disability; lifetime for total disability; must
be disabled for at least seven days to qualify; unpaid housekeeper $100/week, maximum
52 weeks
Death benefits:
Death within 180 days after accident (or two years if continuously disabled prior to
death); death of head of household $50,000, plus $1,000 to each dependent survivor
after first; death of spouse of head of household $25,000; death of dependant $5,000
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes. If injury is deemed “minor” under provincial regulation, maximum award is $7,455
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Administration:
Private insurers
Sources:
Insurance Act, RSPEI 1988, c I-4,
www.gov.pe.ca/law/statutes/pdf/i-04.pdf;
Prince Edward Island Standard Automobile Policy S.P.F. No.1, for accidents occurring on or after October 1, 2014,
www.gov.pe.ca/photos/original/ELJ_SampleAuto.pdf;
Prince Edward Island Standard Automobile Policy S.P.F. No.1, for accidents occurring on or after October 1, 2015,
www.gov.pe.ca/photos/original/JPS_SampleAuto.pdf;
Bill 46, An Act to Amend the Insurance Act (No. 2) (Chapter 36),
www.assembly.pe.ca/bills/onebill.php?session=4&generalassembly=64&number=46;
Prince Edward Island Superintendent of Insurance – Notices,
www.gov.pe.ca/jps/index.php3?number=1053687&lang=E;
October 1, 2015, Automobile Insurance Reforms,
www.gov.pe.ca/photos/original/JPS_InsReform.pdf
36
IBC Facts 2016
nb
Quebec
alberta
Newfoundland and Labrador
as of January 1, 2016
sask
bc
nun
nwt
pei
ns
newf
ont
Mandatory minimum third-party
liability:
$200,000 is available for any one accident; however, if a claim involving both bodily injury
and property damage reaches this figure, payment for property damage will be capped
at $20,000
Medical payments:
(Optional to buy) Up to $25,000/person; four-year time limit
Funeral expense benefits:
(Optional to buy) $1,000
Disability income benefits:
(Optional to buy) Maximum $140/week; 104 weeks for partial disability; lifetime for total
disability; must be disabled for at least seven days to qualify; unpaid housekeeper
$70/week, maximum 12 weeks
Death benefits:
(Optional to buy) Death within 180 days (or two years if continuously disabled prior to
death); death of head of household $10,000, plus $1,000 to each dependent survivor after
first; death of spouse $10,000; death of dependant $2,000
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes. Awards are subject to deductible of $2,500
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Administration:
Private insurers
Sources:
Automobile Insurance Act, Chapter A-22, an Act Respecting Automobile Insurance,
http://assembly.nl.ca/Legislation/sr/statutes/a22.htm;
Newfoundland & Labrador Standard Automobile Policy S.P.F. No.1 (not available online)
IBC Facts 2016
37
Quebec
alberta
nun
nwt
pei
yukon
Yukon
as of January 1, 2016
Mandatory minimum third-party
liability:
$200,000
is available
however,
both bodily
injury
sask
bc for any one accident;
ns
newfif a claim involving
ont
nb
and property damage reaches this figure, payment for property damage will be capped
at $10,000
Medical payments:
Up to $10,000/person; two-year time limit
Funeral expense benefits:
$2,000
Disability income benefits:
80% gross wages to maximum $300/week; 104 weeks for temporary or total disability;
nothing is payable for the first seven days of disability; unpaid housekeeper $100/week,
maximum 26 weeks
Death benefits:
Death any time after accident; death of head of household $10,000, plus $2,000 to
each dependent survivor other than the first, and 1% of total principal sum to each
dependant/survivor after first, for 104 weeks; death of spouse of head of household
$10,000; death of dependent relative, according to age, maximum $3,000
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Administration:
Private insurers
Sources:
Insurance Act, O.I.C. 1988/090,
www.gov.yk.ca/legislation/regs/oic1988_090.pdf;
Yukon Territories Standard Automobile Policy S.P.F. No.1 (not available online)
38
IBC Facts 2016
mb
Northwest Territories
and Nunavut
Quebec
alberta
nun
Quebec
nwt
alberta
nun pei
yukon
nwt
as of January 1, 2016
Mandatory minimum third-party
liability:
$200,000 is available for any one accident; however, if a claim involving both bodily injury
sask
bc
ns
newf
ont
sask
and property damage
reaches this figure,
payment
for property bc
damage
will benscapped
at $10,000
Medical payments:
Up to $25,000/person; four-year time limit
Funeral expense benefits:
$1,000
Disability income benefits:
80% of gross weekly wages to maximum $140/week; 104 weeks for temporary disability;
lifetime for total disability; nothing is payable for the first seven days of disability; unpaid
housekeeper $100/week, maximum 12 weeks
Death benefits:
Death within 180 days after accident (or two years if continuously disabled prior to
death); death of head of household $10,000, plus $1,500 to single survivor or $2,500 to
each survivor after first if more than one; death of spouse of head of household $10,000;
death of dependant $2,000
Impairment benefits:
N/A
Right to sue for pain and suffering?
Yes
Right to sue for economic loss in
excess of no-fault benefits?
Yes
Administration:
Private insurers
Sources:
Northwest Territories
Insurance Act, R.S.N.W.T. 1988, c.I-4,
https://www.justice.gov.nt.ca/en/files/legislation/insurance/insurance.a.pdf?t1455034045286;
Northwest Territories Standard Automobile Policy S.P.F. No.1 (not available online)
Nunavut
Insurance Act, R.S.N.W.T.1988, c.I-4,
http://www.gov.nu.ca/sites/default/files/gnjustice2/justicedocuments/Consolidated%20Law/Current/634975585772928750-1316283194-consRSNWT1988cI-4.pdf;
Nunavut Territories Standard Automobile Policy S.P.F. No.1 (not available online)
IBC Facts 2016
39
nb
newf
Premiums and claims
Private insurers wrote insurance policies totalling $21 billion in
net written premiums for auto insurance in 2014.
For a complete breakdown of how each dollar collected by
insurers is spent, see Insurance Dollar on page 8.
Automobile insurance premiums, like all insurance premiums,
are determined based on risk. Insurers estimate how likely it
is that a customer – and a group of customers with the same
set of circumstances – will make a claim, and how much those
claims will likely cost in a given year. A number of factors help
to determine car insurance premiums. These include where a
customer lives, the type of vehicle the customer drives, how the
vehicle is used, and the customer’s driving record and driver
profile. (A driver profile includes the claims history of a group of
customers of the same age, for example.)
In 2014, Canadian private P&C insurers paid out $15.8 billion
in net claims incurred to policyholders for all types of auto
insurance coverage: third-party liability, accident benefits,
collision and comprehensive, and other coverages. Third-party
liability claims payouts accounted for 46.1% of all net claims
incurred. The vast majority of claims – 86% – were for incidents
involving private passenger vehicles.
A note about terminology: The following three tables show
claims costs by accident year, which is how much insurers paid
out for all claims that occurred in that year (although in some
instances claims may be paid in future years).
Costs of claims for private passenger auto by type of coverage in $000, 1991 to 2014
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Third-party
liability (includes
DCPD where
applicable) Accident benefits
1,557,223
826,630
1,690,892
955,247
1,891,894
1,013,499
1,806,506
1,584,715
1,838,017
1,462,295
2,012,891
1,501,056
2,368,067
1,026,325
2,649,663
1,171,796
3,031,026
1,365,638
3,293,534
1,633,484
3,467,501
1,789,874
3,711,895
2,127,839
3,523,845
1,984,773
3,216,368
1,727,344
3,239,365
1,914,067
3,475,227
2,217,100
3,818,638
2,617,557
3,861,390
2,917,946
4,196,290
4,014,679
4,331,351
3,983,952
4,271,318
2,419,589
4,416,293
2,391,869
4,777,995
2,612,833
4,949,530
2,650,275
Collision
782,701
771,711
794,386
779,563
742,130
737,992
710,880
730,926
824,646
959,347
972,123
1,061,417
1,005,066
929,927
983,808
1,059,251
1,240,116
1,260,909
1,202,946
1,154,057
1,232,011
1,234,649
1,382,151
1,486,561
Comprehensive
691,504
615,656
654,682
657,289
667,032
668,769
540,848
576,312
537,495
577,211
586,260
569,513
540,134
485,240
531,962
531,435
635,237
661,903
662,685
747,627
641,817
785,580
799,126
847,114
Other*
112,617
100,816
104,268
106,716
146,178
159,216
211,225
262,126
279,722
334,651
381,821
419,164
417,122
403,549
409,110
413,318
449,271
461,557
476,486
462,338
467,587
448,166
518,987
545,938
Total
3,970,676
4,134,322
4,458,729
4,934,789
4,855,652
5,079,924
4,857,346
5,390,824
6,038,526
6,798,227
7,197,578
7,889,828
7,470,940
6,762,429
7,078,311
7,696,332
8,760,819
9,163,705
10,553,086
10,679,325
9,032,322
9,276,557
10,091,093
10,479,418
Sources: IBC Economic Trends, with data from GISA
Figures may not add up to 100% as a result of rounding
*Includes uninsured auto, underinsured motorist, all perils and specified perils
40
IBC Facts 2016
Private passenger auto insurance claims, 2014
Number of insured vehicles
Number of claims
Total cost of claims in $000
Third-party liability
(includes DCPD where
applicable)
10,957,686
375,452
4,961,453
Accident benefits
10,943,098
106,159
2,650,854
Collision
7,659,560
255,821
1,490,548
Comprehensive
8,697,561
284,429
849,138
Source: 2014 GISA Automobile Insurance Experience Exhibits
Commercial auto insurance claims, 2014
Number of insured vehicles
Number of claims
Total cost of claims in $000
Third-party liability
(includes DCPD where
applicable)
1,009,787
21,926
485,514
Accident benefits
993,944
2,372
101,552
Collision
402,237
8,311
84,630
Comprehensive
523,292
10,983
81,088
Source: 2014 GISA Automobile Insurance Experience Exhibits
Average losses
P&C insurers track loss amounts in two ways. They calculate
the average cost per claim (severity) and the average cost per
insured vehicle (loss cost).
The average cost per claim is calculated by dividing the total
cost of claims by the number of claims. In 2014, the national
average cost per claim for private passenger auto insurance
claims was $10,498,189,803÷1,087,267= $9,656.
The average cost per insured vehicle is calculated by dividing
the total cost of claims by the number of insured vehicles. In
2014, the national average cost per insured private passenger
vehicle was $10,498,189,803÷10,957,686= $958.07.
Average cost ($) per claim by type of coverage for private passenger automobile insurance,
2010 to 2014
Type of coverage
Third-party liability
Accident benefits
Collision
Comprehensive
2010
12,446
35,940
5,115
2,879
2011
12,381
24,163
5,322
2,290
2012
13,003
24,624
5,490
2,650
2013
13,220
25,150
5,694
2,853
2014
13,215
24,970
5,827
2,985
Source: 2014 GISA Automobile Insurance Experience Exhibits
Average cost ($) per insured vehicle by type of coverage for private passenger vehicles,
2010 to 2014
Type of coverage
Third-party liability
Accident benefits
Collision
Comprehensive
2010
425.48
392.20
164.68
92.65
2011
412.25
233.72
173.09
78.36
2012
417.57
226.05
169.37
93.91
2013
443.11
242.06
185.05
93.66
2014
452.78
242.24
194.60
97.63
Source: 2014 GISA Automobile Insurance Experience Exhibits
IBC Facts 2016
41
Major issues - affordable,
effective auto insurance
In Canada, the provincial governments regulate almost
all aspects of auto insurance. IBC works closely with these
governments to improve the auto insurance product and
system.
A decade ago, auto insurance in Nova Scotia was in crisis, with
insurers paying out more money in claims than they were
collecting in premiums. As well, premiums were increasing
for many drivers. Working with the industry, the government
introduced reforms that reduced the average cost of auto
insurance in the province by almost 25%. Today, Nova Scotia’s
premiums are among the lowest in the country.
The highest premiums in Atlantic Canada are in Newfoundland
and Labrador, where the average written premium was $1,110
in January 2016. The average premiums in the three other
Atlantic provinces were around $800. The industry is working
with the Newfoundland and Labrador government to find a
solution to the pressures and increased claim costs that have
forced up the province’s auto insurance premiums.
Also in Alberta, IBC is approaching the provincial government
– elected in May 2015 – about that province’s urgent need for
auto insurance reform.
Reform is also needed in Ontario; the province’s 9.4 million
drivers pay more for auto insurance than anywhere else in
Canada. The Ontario government and insurance industry
are working together to affect change, and in April 2015 the
government announced its Building Ontario Up budget, which
contains auto insurance reforms. The budget included updating
the definition of catastrophic impairment and reducing the
time period to claim medical, rehabilitation and attendant
care benefits from 10 years to five years, except for children or
individuals suffering catastrophic impairments.
To benefit consumers, the industry has been calling for
an examination of the mandate of the Financial Services
Commission of Ontario (FSCO), and in March, the government
announced a review. IBC filed its submission, focusing on key
areas of FSCO’s oversight and consumer interests.
The government assembled an expert advisory panel to
carry out the review, and in November the panel released its
preliminary report, which reflects industry direction. IBC asked
that the regulator’s role be restructured so it can respond in
a timely fashion to the rapid changes in industry structure,
technology, market demands and consumer expectations, and
the report echoes this recommendation.
42
IBC Facts 2016
The proposed governance structure also appears to be largely
compatible with IBC’s proposal. The panel recommends that the
new regulator support a model of operational independence
from government while retaining ultimate accountability to the
legislature.
In other provinces – namely, British Columbia, Saskatchewan
and Manitoba – the industry continues to advocate for private
rather than public auto insurance. With such government-run
insurance companies, there is limited choice for consumers;
for example, the deductibles are fixed and there are no multivehicle discounts. And with a captive audience, public insurance
companies have no incentive to develop new services.
In comparison, private insurers have created novel products,
such as first-accident forgiveness, replacement cost coverage
and roadside assistance. And while taxpayers subsidize the
premiums in every province with public auto insurance, private
insurance adds to communities by paying taxes and investing
in the private sector through corporate shares, bonds and real
estate.
In a world of rapidly changing technology that includes
transportation network services (of which UberX is the most
well known), private insurers are offering insurance solutions to
meet evolving consumer needs. The insurance industry is also
exploring the implications of autonomous vehicles and the best
way to ensure consumers are well protected.
Major issues - crime, including fraud
Auto insurance crime increases insurers’ claim costs, and this
drives up premiums for consumers.
IBC has several initiatives to help deter insurance fraud,
including a webpage and toll-free phone line that allow
consumers to anonymously report fraud. IBC works with the
non-profit organization CANATICS, which analyzes pooled auto
insurance data to identify potential fraud. And IBC’s awardwinning Provincial Auto Theft Network brings together law
enforcement agencies and the insurance industry to reduce
auto theft and auto insurance fraud.
A major milestone in the fight against fraud was the 2015
conviction of a Peel Regional Police constable who was
involved in a staged collision ring based in Brampton, Ont.
The constable was paid to provide accident reports that made
the ring’s staged accidents look legitimate. In total, the ring had
defrauded insurance companies of more than $900,000.
Major issues - auto theft
In 2015, IBC helped recover $23.6 million in stolen automobiles,
an increase from the $18.8 million in 2014.
Since auto theft defies jurisdictional, political, geographical and
administrative boundaries, IBC fights auto theft with multiple
partners. One partner is the Canada Border Services Agency,
and in 2015 IBC and the agency seized more than $11 million
in stolen cars at the Montreal and Halifax ports. Together they
determined that organized crime was taking a different approach
to avoiding detection when exporting stolen vehicles: The
thieves were dismantling the cars and trucks and shipping parts
rather than whole vehicles.
To help consumers identify if their auto is a potential target,
IBC publishes an annual list of the Top 10 most frequently stolen
vehicles..
The 10 most frequently stolen
vehicles in Canada, 2015
FORD F350 SD 4WD PU 2005
FORD F350 SD 4WD PU 2006
FORD F350 SD 4WD PU 2007
CADILLAC ESCALADE 4DR 4WD SUV 2006
FORD F350 SD 4WD PU 2003
FORD F250 SD 4WD PU 2006
FORD F350 SD 4WD PU 2001
FORD F250 SD 4WD PU 2004
Major issues - adapting to
technological innovation
IBC is exploring the industry’s information needs about the array
of new auto technologies and how insurers can adapt to these
innovations.
The year 2015 saw a significant increase in the uptake of
telematics, also known as usage-based insurance (UBI). This
technology provides valuable data that significantly change the
way insurers see their business and how they calculate premiums.
The data allow insurers to determine a customer’s individual
driving behaviour, and offer him or her personalized coverage.
To record their driving information, most UBI consumers rely on
a device that they’ve installed in their vehicles. But growing in
popularity are the UBI apps for smartphones. The apps provide
consumers with increased convenience and a daily, rather than
weekly, driving report. But they provide insurers with a pressing
question: If consumers can turn off their smartphones, thereby
disabling their UBI apps, how reliable is the driving information
that the apps provide?
In response to requests from IBC, the Canadian Council of
Insurance Regulators has agreed to look into the vi-ability of
electronic proof of insurance and a common regulatory approach
to UBI. The council reconstituted its Electronic Commerce
Committee specifically to do this work.
The Autorité des marchés financiers released its Notice Regarding
UBI Programs and confirmed IBC’s position that existing
legislation and regulations already adequately protect consumers.
FORD F250 SD 4WD PU 2007
FORD F250 SD 4WD PU 2001
Major issues - road safety
IBC has long advocated for safer roads, and today’s number one
road safety issue is driver distraction. Texting while driving is of
particular concern because drivers who text are 23 times more
likely to be involved in a crash or near-crash event compared to
drivers who are not texting. In February 2015, IBC launched its
“Drive Now. Text Later. Live Longer.” campaign, and used social
media to spark conversations about distracted driving across the
country.
Major issues - severe weather - hail
Climate change and severe weather are affecting auto insurance.
In particular, the increased incidence of hail has driven up
premiums. Property Claims Services Canada reports that the
2014 hail and windstorm in Airdrie, Alta., and surrounding area
caused more than $170 million of insured damages just to motor
vehicles.
The SafetyMobile, an acclaimed driving simulator that IBC
takes across Ontario every summer, allows consumers to
experience how their reaction time slows down when using
a cellphone. It also takes drivers through four staged-collision
scenarios, teaching them how to detect, avoid and report them.
The SafetyMobile inspired IBC’s new SafetyMobile App for
smartphones, which raises awareness of staged collisions.
IBC Facts 2016
43
Home
insurance
Unlike auto insurance, home or personal property
insurance is not mandatory by law. However, it provides
coverage for an individual’s single largest investment –
a home. In fact, most banks and mortgage holders
require proof of insurance on property as security for the
loan or mortgage.
As the second largest line of P&C policies after auto insurance,
home or personal property insurance includes home,
condominium, cottage, mobile home and tenant’s insurance.
It covers the property, personal belongings and personal
liability of the policyholder and the policyholder’s spouse or
partner, children (with age limits) and dependants (with age
and other limits).
As with all insurance premiums, insurers consider a number of
risk factors to determine the price an individual pays for home
insurance. For example, insurers look at the neighbourhood
and the frequency and types of past claims in that area; the
cost to replace a home’s contents and restore a home to its
previous condition; the condition and age of the roof; the type
of heating, electrical and plumbing systems; and details about
any additional structures on the property.
Insurers analyze these risks to estimate how likely it is that
a policyholder, or a group of people with the same set of
circumstances, will make a claim and how much that claim
will cost.
Types of coverage
Home insurance generally covers a homeowner’s residential
building, outbuildings, contents, additional living expenses (if
an insured event damages the home so that it is uninhabitable
during the repairs) and personal liability. Tenant’s insurance
generally covers loss or damage to personal belongings,
additional living expenses and personal liability.
There are various types of policies:
• An all-perils policy provides coverage for a home and
its contents from loss or damage from all perils except
those specifically excluded. A peril is a chance event that
is unexpected and accidental. Some perils are excluded
from comprehensive policies – for example, earthquakes.
Coverage for this peril may be purchased as a policy add-on.
However, there are some excluded perils, such as overland
flooding, for which home insurance may not be available.
But availability of coverage for some perils is changing.
Following recent large floods, insurers have seen a higher
demand for coverage. In 2015, at least two national insurers
began offering coverage for overland flooding and a few
others have announced they are considering offering such
coverage.
• A broad-form policy provides coverage for a home from
loss or damage from all perils except those specifically
excluded, but only insures contents for perils that are
specifically named in the policy.
• A standard, basic or named perils policy provides
coverage for a home and its contents for perils specifically
named in the policy.
• A no-frills policy provides very basic coverage
for properties that do not meet an insurer’s normal
underwriting standards.
44
IBC Facts 2016
Premiums and claims
In 2015, private P&C insurers wrote $10.2 billion in net written
premiums for personal property insurance and paid out
$5.5 billion for net claims incurred.
Major issues - severe weather
Climate change is disrupting lives and destroying homes, and is
a growing concern for the industry. Over the past 60 years, the
weather has become wetter, with a 12% average increase in
rainfall across the country, making water damage rather than
fire damage today’s primary cause of home insurance losses.
Compared to the 1950s, Canadians experience an additional
20 days of rain per year.
The industry has identified adaptation to severe weather as a
priority issue, and IBC has responded by developing a Natural
Catastrophe Strategy for Canada. The strategy encourages
the industry and federal government to collaborate on two
risks – flood and earthquake. The current gaps in private flood
and earthquake insurance leave governments to pick up the
tab for these natural catastrophes. A risk-sharing partnership
with government is required for insurers to be able to offer
affordable policies that protect the small percentage of
Canadians who face the highest risk of earthquake and/or flood.
The strategy promotes all levels of government working
with the industry to improve Canada’s resilience to natural
catastrophes by updating flood mapping and investing in
infrastructure and flood management. It promotes earthquakeproofing buildings and updating building codes. The strategy
stresses that both the government and the industry need
to educate citizens about the steps they can take to protect
themselves from severe weather.
During and after a severe weather event, IBC works closely
with government officials and reaches out to consumers
with advice and invite them to call IBC’s toll-free Consumer
Information Centre.
Major issues - flood coverage
This year for the first time, a few Canadian insurers began
offering overland flood insurance to homeowners in specific
areas. But at the moment, flood insurance is likely unaffordable
for the 10% of homeowners who need it the most: those
living on floodplains and in other areas at high risk of flooding.
In these neighbourhoods, floods are a frequent, predictable
event. Since insurance is designed to protect against random,
unpredictable risks, it isn’t designed for areas where flooding is a
regular occurrence.
IBC is calling for a national flood program built on a coordinated,
private-public response to the growing problem of flooding.
Canada’s federal government is already paying for flood damage
through the Disaster Financial Assistance Arrangements (DFAA)
program. Since the 1970s, floods have been the DFAA’s biggest
draw, accounting for 70% to 80% of its spending. In the first four
years of this decade, the DFAA program spent a staggering $3.7
billion on flood related expenses.
In 2015, IBC published The Financial Management of Flood Risk, a
review of flood insurance programs in the other G7 countries. It
explores best practices and available models for addressing the
economic impact of flood. It also draws out lessons for Canada’s
approach to the financial management of flood risk and the role
of insurance.
Canada is the only G7 country that doesn’t have a national flood
program in place. But Canada cannot copy another country’s
flood program and expect it to work in our vast nation.
IBC is a leading voice advocating for a flood mitigation strategy.
Much of the losses from flood can be attributed to aging
public infrastructure. Canada’s aging sewer and stormwater
infrastructure simply cannot handle today’s increased
precipitation. Infrastructure improvements are essential for
increasing the availability of overland flood insurance coverage.
Governments made several encouraging announcements this
year. In January 2015, the Public Safety Minister announced
changes to the DFAA and Canada’s national Disaster Mitigation
Strategy that included $200 million for flood mitigation projects.
In the fall, the new federal Liberal government was elected on
a platform based, in part, on investing $5.6 billion over the next
four years in “green infrastructure,” including flood mitigation
systems.
Also in the fall, Alberta’s government released its first budget,
which included $8.6 billion for municipal infrastructure.
Canada’s lack of effective flood risk maps, an essential riskassessment tool, is also limiting the industry’s ability to provide
residential flood insurance. IBC took a proactive approach to
the problem and formed a partnership with several firms to
develop the most comprehensive and detailed Canadian flood
risk maps to date.
The new maps rely on the best available local climatic and
geospatial data, which was then used to build a new flood
model tailored to the Canadian environment. The maps and
model are state-of-the-art and current for every region of the
country to support assessment of flood risk.
IBC Facts 2016
45
The maps are crucial for underwriting but can also help
governments and other stakeholders. Governments can use
this information for urban planning and zoning purposes. They
can also use it to target investment in infrastructure and risk
mitigation projects where they generate the highest return on
investment. Provinces and municipalities can make use of these
maps as they consider the flood risk to infrastructure.
IBC continues to advocate to the government, urging it to help
create a robust culture of flood risk management in Canada. At
the same time, we’re preparing imaginative solutions to help
communities manage excess water.
In 2009, IBC began developing the municipal risk assessment
tool (MRAT) to help communities identify at-risk sewer and
stormwater infrastructure, allowing them to prioritize their
infrastructure investments. IBC continues to receive positive
feedback from the three pilot municipalities that employed the
semi-automated statistical tool. Now IBC is taking steps to have
MRAT fully automated, operationalized and distributed across
Canada.
To move ahead, IBC went back in time to study how oldfashioned rain barrels can help communities address modernday climate change. In September, IBC released the results of
its study in Stratford, P.E.I., where extreme weather events have
flooded roads and basements. For the study, IBC distributed
close to 1,000 rain barrels to families, who installed the barrels
under their homes’ roof downspouts to capture water during
rainstorms. After a year, the barrels had the potential to reduce
the flow rate to the treatment plant by as much as 4.5%,
enough to prevent the stormwater system from overflowing.
IBC has since launched a similar initiative in Cornwall, P.E.I.
Major issues - earthquakes
Many consumers in need of earthquake insurance do not buy
it, or falsely believe that quake damage will be covered by their
basic home insurance policy, or that the government will pay
to rebuild their homes. Over the last decade, some insurance
companies have stopped providing earthquake insurance
or have placed limits on coverage because of higher capital
requirements from regulators and improved risk assessment. For
example, in British Columbia, where it has been established that
there’s a 30% chance of a destructive earthquake within the next
50 years, consumers face deductibles as high as 15% of the value
of their home.
46
IBC Facts 2016
IBC continues to take a leadership approach in furthering the
dialogue on Canada’s earthquake risk. In British Columbia, IBC
took the “Quake Cottage,” an earthquake simulator, to highrisk communities to encourage the residents to prepare for a
potential quake. Also, IBC continues to help sponsor the annual
Great British Columbia ShakeOut. Launched in 2011 with
470,000 participants, the ShakeOut event this year saw a record
785,000 British Columbians go through the earthquake drill. In
addition, IBC petitions the government for help in educating
consumers to create a culture of earthquake preparedness.
This advocacy work has produced promising results. In March,
the B.C. government released its Earthquake Preparedness
Consultation Report, which recommends that the provincial and
federal governments engage with the insurance industry and
other stakeholders to develop a strategy on disaster resilience
and increase public awareness of the need to prepare.
IBC is continuing the national dialogue on earthquake
preparedness that it initiated at its Vancouver symposium
in 2014. There is an active seismic region in Quebec, and in
November 2015 IBC hosted a symposium on earthquake
preparedness in Montreal. It focused on the physical and
economic impact of a major quake in the province, and stressed
the need to prepare by developing emergency plans and
ensuring that buildings meet seismic requirements. IBC stressed
its consumer education mandate. In Quebec, the population
is generally not well informed about earthquake risk. An IBC
survey found that 25% of policyholders in Quebec believed
they were covered for an earthquake, when in fact only 3%
actually were.
Business
insurance
Operating a business comes with an element of risk
and unpredictability. Businesses, including non-profit
organizations such as charities, buy insurance as
part of an effective risk management plan. In larger
enterprises, risk managers evaluate any perils to the
business, implement programs to reduce and manage
those dangers, and buy insurance to backstop remaining
exposures.
Smaller businesses without the benefit of risk managers depend
more on the advice of insurance representatives to identify
risks and help them choose the appropriate insurance to guard
against potential losses.
Much like any other business, home-based businesses require
coverage for possible business-related losses. For example, a
home-based business owner may require commercial liability
coverage since business risks may not be covered by the liability
section of a home insurance policy.
Types of coverage
There are various types of business insurance policies:
• Commercial general liability covers a business and its
employees for actions against them that result in bodily
injury, property damage, personal injury, advertising injury,
tenant’s legal liability, and other types of loss or damage to
third parties.
• Commercial property insurance is designed to protect
the physical assets of a business against loss or damage
from a broad range of causes. Physical assets include:
- Equipment
- Inventory and supplies
- Office furniture and fixtures
- Computers and electronics
- Personal property of employees while on-site
- Customer property at your business site
- Lighting systems
- Windows
- Outdoor signs
• Directors’ and officers’ insurance covers directors and
officers of organizations for actual or alleged errors, errors
or omissions, breach of duty, misleading statements
and neglect in carrying out their responsibilities for the
organization.
• Errors and omissions or professional liability insurance
covers individuals and organizations who give professional
advice (for example, consultants and financial planners).
It protects them if clients claim damages as a result of
inaccurate advice, misrepresentation, negligence, or
violation of good faith and fair dealing.
• Business interruption insurance can cover against lost
earnings during the period of a shutdown due to an event
such as a fire or riot. It can cover the time the business
needs to resume profitability. Some business owners buy
additional insurance to cover extra operating expenses – for
example, a new telephone system, extra advertising costs,
rentals and moving costs – if the business must carry on at
another location or outsource work during the shutdown.
IBC Facts 2016
47
Premiums and claims
Major issues - cargo theft
In 2015, private P&C insurers wrote $6.7 billion in net written
premiums for commercial property insurance and paid out
$3.8 billion in net claims incurred.
Stealing trucks and transport trailers and then offloading the
cargo to sell for a quick profit is big business in Canada. Each
year, cargo theft costs the Canadian economy about $5 billion.
Also in 2015, private P&C insurers wrote $5.0 billion in net
written premiums for commercial liability insurance and paid
out $3.1 billion in net claims incurred.
IBC leads a cargo theft reporting and recovery program with
the Canadian Trucking Alliance. Launched in Ontario and
Quebec in 2014, it brings together the insurance industry,
the trucking community, law enforcement and other
stakeholders to assist in the recovery of stolen goods and to
raise awareness of the costs associated with this crime. Since
its launch, the initiative has received more than 800 reports of
cargo-related thefts, resulting in over $12 million in recoveries
of stolen goods since March 2014.
Major issues - cyber liability
While insurance for cyber liability risk is relatively new, it’s
developing quickly in response to the need of businesses that
engage in e-commerce and/or maintain electronic records
containing customers’ personal information. Recent changes
to Canadian privacy laws have increased the potential costs
associated with a security or privacy breach. Over the past
few years, hackers have exposed millions of people’s private
information, costing millions of dollars to the companies
involved.
Cyber liability coverage addresses the risks associated
with e-business, in particular the risks associated with
responding to a security or privacy breach that may impair
internal business operations as well as cause losses for the
owners of compromised personal information. In addition,
cyber liability coverage may address risks associated with
copyright infringement and losses resulting from computer
viruses being introduced into business computer systems or
networks. There is no standard cyber liability policy, and the
scope, terms and conditions of each policy may vary from
company to company.
48
IBC Facts 2016
In 2015, the program became national when it was launched
in Atlantic and Western Canada with the cooperation of law
enforcement and the provincial trucking associations.
In December 2015, IBC launched its database electronically to
allow law enforcement from across Canada to access the stolen
goods registry 24/7.
Major issues - preparing for natural
catastrophes and climate change
IBC encourages businesses to have business-continuity and
disaster-recovery plans. It also promotes minimizing risks by
installing fire alarms, identifying cyber risks and having a backup
power source.
Large natural disasters have a profoundly negative impact on
economic conditions. Typically, a disaster lowers economic
growth by around one percentage point and GDP by about 2%.
Insurance
organizations
50
55
56
57
59
IBC members
IBC offices
IBC services
Superintendents of insurance
Insurance-related organizations
IBC Facts 2016
3
49
IBC members
IBC member companies – private insurers and reinsurers – can subscribe to the
following three IBC services:
A
B
*
Issues Management
This includes policy development, communications and legal services,
and services provided by regional offices.
Investigative Services
This includes crime ring investigations, auto theft and loss recovery services,
information exchange, and communications and legal services, as they pertain
to Investigative Services.
Vehicle Information Suite
This includes access to web-based business applications, the Canadian Loss
Experience Automobile Rating (CLEAR) system, VINlink products, the publication
“How Cars Measure Up” and other information related to automobile insurance
in Canada.
IBC members and the IBC services to which they subscribe, as of March 15, 2016
IBC members
IBC services
A
​ lberta Motor Association Insurance Company
A
​Algoma Mutual Insurance Company
​Allianz Global Risks (US) Insurance Company
​Allstate Canada Group of Companies (ACG)
​Allstate Insurance Company of Canada
​Pafco Insurance Company
​Pembridge Insurance Company
​L'Alpha, compagnie d'assurance inc.
​The American Road Insurance Company
​Arch Insurance Canada Ltd.
​Atlantic Insurance Company Limited
50
IBC Facts 2016
​A
​
​A
​B
​B
​
​*
​*
​*
​A
​A
​A
​
​
​A
​A
​B
​B
​B
​B
​B
​
​B
​*
​*
​*
​*
​
​*
​
IBC members
​ tradius Credit Insurance N.V.
A
​Aviva Canada Inc.
​Aviva Insurance Company of Canada
​Elite Insurance Company
​Pilot Insurance Company
​S & Y Insurance Company
​Scottish & York Insurance Co. Limited
​Traders General Insurance Company
​AXIS Reinsurance Company (Canadian Branch)
IBC services
​A
​
​
​A
​A
​A
​A
​A
​A
​A
​B
​B
​B
​B
​B
​B
​
​*
​*
​*
​*
​*
​*
​
​A
​A
​
​B
​B
​B
​
​
​*
​A
​A
​B
​
​*
​
​A
​A
​A
​B
​B
​B
​*
​*
​*
​A
​A
​A
​A
​B
​B
​B
​B
​*
​*
​*
​*
​
​
​
​
​
​B
​B
​B
​B
​B
​*
​*
​*
​*
​
​A
A​
​A
​A
​A
​A
​B
​B
​B
​B
​B
​B
​*
​*
​*
​
​*
​*
​A
​A
​B
​
​*
B
​BCAA Insurance Corporation
T​ he Boiler Inspection and Insurance Company of Canada
​Brant Mutual Insurance Company
C
​ AA Insurance Company (Ontario)
C
​Caisse Centrale de Réassurance
​La Capitale Financial Group
​La Capitale assurances générales inc.
​Unica Insurance Incorporated
​L'Unique assurances générales inc.
​Chubb Group of Insurance Companies
​Chubb Insurance Company of Canada
​Federal Insurance Company of Canada
​Mitsui Sumitomo Insurance Company Limited
​Continental Casualty Company
​The Co-operators Group Limited
​Co-operators General Insurance Company
​COSECO Insurance Company
​​CUMIS General Insurance Company
​The Sovereign General Insurance Company
​CorePointe Insurance Company
D
​Desjardins General Insurance Group Inc.​
​Certas Direct Insurance Company
​Certas Home and Auto Insurance Company
​Desjardins Assurances générales inc.
​State Farm Fire & Casualty Company
​State Farm Mutual Automobile Insurance Company
The Personal Insurance Company
E
E​ cclesiastical Insurance Office PLC
​​Echelon Insurance​
IBC Facts 2016
51
IBC members
IBC services
Economical
​Economical Mutual Insurance Company
​Federation Insurance Company of Canada
​The Missisquoi Insurance Company
​Perth Insurance Company
​Waterloo Insurance Company
​Electric Insurance Company
​Euler Hermes American Credit Indemnity Company
​Everest Insurance Company of Canada ​Everest Reinsurance Company
​A
​A
​A
​A
​A
​A
​A
​A
​A
​B
​B
​B
​B
​B
​
​
​
​
​*
​*
​*
​*
​*
​
​
​
​
​
​B
​
A
​A
​A
​A
​
​B
​
​B
​
​*
​*
​*
​A
​A
​A
​
​B
B
​
​B
​*
​*
​
​*
​A
​B
​*
​A
​
​A
​A
​A
​A
​A
​A
​A
​A
​B
​B
​B
​B
​
​B
​B
​B
​
​
​*
​*
​*
​*
​*
​*
​*
​*
​
​
​A
​
​
F
​Fundy Mutual Fire Insurance Company
G
​ eneral Reinsurance Corporation
G
​Gore Mutual Insurance Company
​Le Groupe Estrie Richelieu, compagnie d'assurance
​The Guarantee Company of North America
H
​ artford Fire Insurance Company
H
Heartland Farm Mutual Inc.
​HDI-Gerling Industrial Insurance Company
​Howick Mutual Insurance Company
I
I​ndustrielle Alliance, Assurance auto et habitation inc.
​Intact Financial Corporation
​Belair Insurance Company Inc.
​Canadian Direct Insurance Incorporated
​Intact Insurance Company
​JEVCO Insurance Company
​Metro General Insurance Corporation Ltd.
The Nordic Insurance Company of Canada
​Novex Insurance Company
​Trafalgar Insurance Company of Canada
​International Insurance Company of Hannover PLC
​Ironshore Insurance Ltd. (Canada Branch)
L
​Lawyers' Professional Indemnity Company
52
IBC Facts 2016
IBC members
​Liberty Mutual Insurance Company
IBC services
​A
​B
​*
​
​B
​*
​A
​A
​A
​A
​
​
​B
​
​
​
​
​
​A
​B
​*
​A
​A
​A
​A
​A
​A
​
​B
​B
​B
​B
​B
​B
​B
​*
​*
​*
​*
​*
​*
​*
​A
​A
​A
​
​B
​
​
​
​
​A
​A
​
​A
​B
​B
​B
​
​
​*
​*
​
​A
​B
​*
​A
​A
A​
​A
​A
​A
​A
​A
​B
​B
B​
​B
​B
​B
​B
​B
​*
​*
​*
​*
​*
​*
​*
​*
M
​ otors Insurance Corporation
M
​Munich Re Group ​
​Munich Reinsurance Company of Canada
​Temple Insurance Company
​Munich Reinsurance America, Inc.
​The Mutual Fire Insurance Company of British Columbia
N
National Bank Insurance (InnovAssur, Assurances générales inc.)
​Northbridge Financial Corporation
​Federated Insurance Company of Canada
​Northbridge Commercial Insurance Corporation
​Northbridge General Insurance Corporation
​Northbridge Personal Insurance Corporation
​Tokio Marine & Nichido Fire Insurance Co., Ltd.
​Zenith Insurance Company
​North Kent Mutual Fire Insurance
O
​ dyssey America Reinsurance Corporation (Canadian Branch)
O
​Old Republic Insurance Company of Canada
​Omega General Insurance Company
P
​ artner Reinsurance Company of the U.S.
P
​Peace Hills General Insurance Company
​Portage la Prairie Mutual Insurance Company
​Protective Insurance Company
R
​ BC General Insurance Company
R
​RSA
​Ascentus Insurance Ltd.
​Canadian Northern Shield Insurance Company
​GCAN Insurance Company
​​Quebec Assurance Company
Royal & SunAlliance Insurance Company of Canada​
​Unifund Assurance Company
L'Union Canadienne, compagnie d'assurances
​Western Assurance Company
IBC Facts 2016
53
IBC members
IBC services
S
S​ COR Canada Reinsurance Company
​Sentry Insurance, A Mutual Company
​Sirius America Insurance Company
​SSQ, Société d'assurances générales inc.
​Starr Insurance and Reinsurance Limited
​Swiss Re
​Swiss Reinsurance Company Canada
​Westport Insurance Corporation
​A
​A
​A
​A
A​
​
​
​
​B
​
​*
​
​
​*
​
​A
​A
​B
​B
​
​
​A
​A
​A
​A
​A
​B
​B
​B
​B
​*
*
​*
​*
A​
​
​A
A
​
​B
​
​*
​​*
​
​A
​
​B
​B
​*
​
​A
​B
​*
T
​TD Insurance
​Primmum Insurance Company
​Security National Insurance Company
​TD General Insurance Company
​TD Home and Auto Insurance Company
​Toa Reinsurance Company of America (Canada Branch)
​Travelers Canada
​Travelers Insurance Company of Canada
Trillium Mutual Insurance
​Trisura Guarantee Insurance Company
Triton Insurance Company
W
T​ he Wawanesa Mutual Insurance Company
​Wynward Insurance Group
X
​XL Insurance Company SE
54
IBC Facts 2016
IBC offices
Head office
Don Forgeron
President and CEO
777 Bay Street, Suite 2400
P.O. Box 121
Toronto, Ontario M5G 2C8
Tel:416-362-2031
Fax:416-361-5952
Regional offices
Ottawa
Craig Stewart
Vice-President, Federal Affairs
8 York Street, Suite 200
Ottawa, Ontario K1N 5S6
Tel:613-236-5043
Fax:613-236-5208
Western and Pacific
Ontario
Kim Donaldson
Vice-President, Ontario
777 Bay Street, Suite 2400
P.O. Box 121
Toronto, Ontario M5G 2C8
Tel:416-362-2031
Fax: 416-644-4961
Québec
William Adams
Vice-President, Western and Pacific
10104-103 Avenue, Suite 2603
Edmonton, Alberta T5J 0H8
Johanne Lamanque
Vice-President, Quebec
800, rue du Square-Victoria, bureau 2410
C.P. 336, succ. Tour de la Bourse
Montréal, Québec H4Z 0A2
Tel:780-423-2212
Fax:780-423-4796
Tel:514-288-1563
Fax:514-288-0753
510 Burrard Street, Suite 901
Vancouver, British Columbia V6C 3A8
Tel:604-684-3635
Fax:604-684-6235
Atlantic
Amanda Dean
Vice-President, Atlantic
1969 Upper Water Street, Suite 1706
Purdy’s Wharf, Tower II
Halifax, Nova Scotia B3J 3R7
Tel:902-429-2730
Fax:902-420-0157
IBC Facts 2016
55
IBC services
Investigative Services
British Columbia
Consumer Information Centres
British Columbia,
Saskatchewan and Manitoba
34A-2755 Lougheed Highway, Suite 571
Port Coquitlam, British Columbia V3B 5Y9
1-844-2ask-IBC (1-844-227-5422)
Tel:604-944-2431
Fax:604-944-1326
1-844-2ask-IBC (1-844-227-5422)
Prairies
Ontario
370, 5222-130 Avenue S.E., Suite 400
Calgary, Alberta T2Z 0G4
1-844-2ask-IBC (1-844-227-5422)
Tel:403-258-3677
Fax:403-255-9054
1-877-288-4321
Ontario
1-844-2ask-IBC (1-844-227-5422)
365 Evans Avenue, Suite 501
Etobicoke, Ontario M8Z 1K2
Tel:416-252-3441
Fax:416-252-6940
Québec
630, boul. René-Lévesque ouest, bureau 2440
Montréal, Québec H3B 1S6
Tel:514-933-8953
Fax:514-933-7814
Atlantic
1969 Upper Water Street, Suite 1706
Purdy’s Wharf, Tower II
Halifax, Nova Scotia B3J 3R7
Tel:902-429-2730
Fax:902-422-5151
56
IBC Facts 2016
Alberta
Quebec
Atlantic
Superintendents
of insurance
as of January 1, 2016
Canada
Manitoba
Jeremy Rudin
Superintendent
Office of the Superintendent of Financial Institutions Canada
255 Albert Street
Ottawa, Ontario K1A 0H2
Tel:613-990-7788
Fax:613-990-5591
www.osfi-bsif.gc.ca
Scott Moore
Deputy Superintendent of Financial Institutions - Insurance
Financial Institutions Regulation Branch
207-400 St. Mary Avenue
Winnipeg, Manitoba R3C 4K5
Tel:204-945-2542
Fax:204-948-2268
Email:[email protected]
http://www.mbfinancialinstitutions.ca
British Columbia
Carolyn Rogers
Superintendent and Chief Executive Officer
Financial Institutions Commission of British Columbia
555 West Hastings Street, Suite 2800
P.O. Box 12116
Vancouver, British Columbia V6B 4N6
Tel:604-660-3555
Fax:604-660-3365
Email:[email protected]
Alberta
Nilam Jetha
Superintendent of Insurance
Alberta Treasury Board and Finance
Financial Sector Regulation and Policy (FSRP)
9515-107 Street, Room 402
Terrace Building
Edmonton, Alberta T5K 2C3
Tel:780-427-8322
Fax:780-420-0752
www.finance.alberta.ca
Saskatchewan
Roger Sobotkiewicz
Superintendent of Insurance
Financial Institutions Division
Financial and Consumer Affairs Authority
1919 Saskatchewan Drive, Suite 601
Regina, Saskatchewan S4P 4H2
Tel:306-787-6700
Fax:306-787-9006
Email:[email protected]
Ontario
Brian Mills
Chief Executive Officer and Superintendent of Financial Services
Financial Services Commission of Ontario
North York City Centre
5160 Yonge Street, 17th Floor
P.O. Box 85
Toronto, Ontario M2N 6L9
Tel:416-250-7250
Fax:416-590-7070
Toll-free:1-800-668-0128
www.fsco.gov.on.ca
Québec
Louis Morisset
President and Chief Executive Officer
Autorité des marchés financiers
800, rue de Square Victoria, 22e étage
C.P. 246, Tour de la Bourse
Montréal, Québec H4Z 1G3
Tel: 514-395-0337
Fax: 514-873-3090
Toll-free: 1-877-525-0337
www.lautorite.qc.ca
Place de la Cité, tour Cominar
2640, boulevard Laurier, bureau 400
Québec, Québec G1V 5C1
Tel:418-525-0337
Fax:418-525-9512
www.lautorite.qc.ca
IBC Facts 2016
57
New Brunswick
Yukon
Angela Mazerolle
Superintendent and Director of Insurance
Financial and Consumer Services Commission
Insurance Division
225 King Street, Suite 200
Fredericton, New Brunswick E3B 1E1
Tel: 506-453-8959
Email: [email protected]
www.fcnb.ca
Michael Noseworthy
Director of Professional Licensing and Regulatory Affairs
Mailing address: P.O. Box 2703 C5
Whitehorse, Yukon Y1A 2C6
Nova Scotia
William Ngu
Acting Superintendent of Insurance
Department of Finance and Treasury Board
Financial Institutions Division
1723 Hollis Street, 4th floor
P.O. Box 2271
Halifax, Nova Scotia B3J 3C8
Tel: 902-424-2787
Fax: 902-424-1298
Email: [email protected]
www.novascotia.ca/finance
Prince Edward Island
Robert A. Bradley
Superintendent of Insurance
Department of Justice and Public Safety
Insurance and Real Estate Division
Shaw Building, 4th Floor, South
95 Rochford Street
P.O. Box 2000
Charlottetown, Prince Edward Island C1A 7N8
Tel:902-368-6478
Fax:902-368-5283
Email:[email protected]
www.gov.pe.ca
Newfoundland and Labrador
John O’Brien
Director of Financial Services Regulation Division
Superintendent of Insurance, Real Estate, Mortgage Brokers,
Securities and Pre-Paid Funerals
Department of Service NL
Financial Services Regulation Division
2nd Floor West Block, Confederation Building
Prince Philip Parkway
P.O. Box 8700
St. John’s, Newfoundland and Labrador A1B 4J6
Tel: 709-729-4909
Fax: 709-729-3205
Email: [email protected]
www.gov.nl.ca
58
IBC Facts 2016
Physical address: 307 Black Street
Whitehorse, Yukon Y1A 2N1
Tel: 867-393-6927
Fax: 867-667-3609
Email: [email protected]
www.gov.yk.ca
Northwest Territories
Douglas Doak
Superintendent of Insurance
Treasury Division, Department of Finance
4922-48th Street
P.O. Box 1320
YK Centre, 3rd Floor
Yellowknife, Northwest Territories X1A 2L9
Tel:867-920-3423
Fax:867-873-0325
Email:[email protected]
www.fin.gov.nt.ca
Nunavut
Dan Carlson
Superintendent of Insurance
Department of Finance
P.O. Box 2260
Iqaluit, Nunavut X0A 0H0
Tel:867-975-6813
Fax:867-975-5845
Email:[email protected]
gov.nu.ca/finance
Insurance-related
organizations
ADR Institute of Canada, Inc.
234 Eglinton Avenue East, Suite 405
Toronto, Ontario M4P 1K5
Tel:416-487-4733
Toll-free:1-877-475-4353
Email:[email protected]
www.adrcanada.ca
Appraisal Institute of Canada
200 Catherine Street, Suite 403
Ottawa, Ontario K2P 2K9
Tel:613-234-6533
Email:[email protected]
www.aicanada.ca
Canadian Association of Fire Investigators
310-1390 Prince of Wales Drive
Ottawa, Ontario K2C 3N6
Tel:613-228-1934
Email:[email protected]
www.cafi.ca
Canadian Association of Insurance Women
www.caiw-acfa.com
Canadian Association of Mutual Insurance Companies
311 McArthur Avenue, Suite 205
Ottawa, Ontario K1L 6P1
Tel:613-789-6851
www.camic.ca
Canadian Association of
Direct Relationship Insurers
250 Consumers Road, Suite 301
Toronto, Ontario M2J 4V6
Tel:416-773-0101
Email:[email protected]
www.cadri.com
Canadian Board of Marine Underwriters
2233 Argentia Road, Suite 100
Mississauga, Ontario L5N 2X7
Tel:905-826-4768
Email:[email protected]
www.cbmu.com
Canadian Association of
Financial Institutions in Insurance
21 St. Clair Avenue East, Suite 802
Toronto, Ontario M4T 1L9
Tel:416-494-9224
Email:[email protected]
www.cafii.com
Canadian Boiler and Machinery
Underwriters’ Association
c/o Sovereign General Insurance Company of Canada
2001 avenue McGill College, bureau 1750
Montréal, Québec H3A 1G1
Tel: 514-798-6196
www.cbmua.org
IBC Facts 2016
59
Canadian Council of Insurance Regulators (CCIR)
CCIR Secretariat
5160 Yonge Street
P.O. Box 85
Toronto, Ontario M2N 6L9
Tel:416-590-7290
Email:[email protected]
www.ccir-ccrra.org
Canadian Fire Safety Association (CFSA)
2800 14th Avenue, Suite 2010
Markham, Ontario L3R 0E4
Tel:416-492-9417
Email: [email protected]
www.canadianfiresafety.com
Canadian Independent Adjusters’ Association (CIAA)
Centennial Centre
5401 Eglinton Avenue West, Suite 100
Toronto, Ontario M9C 5K6
Tel:416-621-6222
Toll-free:1-877-255-5589
Email:[email protected]
www.ciaa-adjusters.ca
Canadian Institute of Actuaries
360 Albert Street, Suite 1740
Ottawa, Ontario K1R 7X7
Tel:613-236-8196
Email:[email protected]
www.cia-ica.ca
Canadian Insurance Accountants Association (CIAA)
c/o Base Consulting and Management Inc.
2800 14th Avenue, Suite 2010
Markham, Ontario L3R 0E4
Tel:416-971-7800
Email:[email protected]
www.ciaa.org
Canadian Insurance Claims Managers Association
c/o Insurance Bureau of Canada
777 Bay Street, Suite 2400
P.O. Box 121
Toronto, Ontario M5G 2C8
Tel:416-362-2031
www.cicma.ca
60
IBC Facts 2016
Canadian Life and Health Insurance Association Inc.
Email: [email protected]
www.clhia.ca
Toronto
TD South Tower
79 Wellington Street West, Suite 2300
Toronto, Ontario M5K 1G8
Tel: 416-777-2221
Ottawa
46 Elgin Street, Suite 400
Ottawa, Ontario K1P 5K6
Tel: 613-230-0031
Montréal
1001, boulevard de Maisonneuve ouest, bureau 630
Montréal, Québec H3A 3C8
Tel: 514-845-9004
Centre for Study of Insurance Operations (CSIO)
110 Yonge Street, Suite 500
Toronto, Ontario M5C 1T4
Tel:416-360-1773
Toll-free:1-800-463-2746
1155, boulevard Robert-Bourassa, bureau 1305
Montréal, Québec H3B 3A7
Tel: 416-360-1773
Toll-free: 1-800-463-2746
Facility Association
777 Bay Street, Suite 2400
P.O. Box 121
Toronto, Ontario M5G 2C8
Tel:416-863-1750
Toll-free:1-800-268-9572
Email:[email protected]
www.facilityassociation.com
Fire Prevention Canada
3332 McCarthy Road
P.O. Box 37009
Ottawa, Ontario K1V 0W0
Tel:613-749-3844
Email:[email protected]
www.fiprecan.ca
Fire Underwriters Survey
Email:[email protected]
www.fireunderwriters.ca
Atlantic Canada
238 Brownlow Avenue, Suite 300
Dartmouth, Nova Scotia B3B 1Y2
Tel:1-877-634-8564
Québec
255, boulevard Crémazie Est, 2e étage
Montréal, Québec H2M 1M2
Tel:1-800-263-5361
Ontario
150 Commerce Valley Drive West
Markham, Ontario L3T 7Z3
Tel:1-800-268-8080
Western Canada
3999 Henning Drive
Burnaby, British Columbia V5C 6P9
Tel:1-800-665-5661
General Insurance OmbudService
10 Milner Business Court, Suite 701
Toronto, Ontario M1B 3C6
Tel:416-299-6931
Toll-free:1-877-225-0446
www.giocanada.org
General Insurance Statistical Agency
5160 Yonge Street, Box 85, 16th Floor
Toronto ON M2N 6L9
Tel:
416 590-7526
Fax:
416 590-7070
Email: [email protected]
www.gisa.ca
Groupement des assureurs automobiles
800, rue du Square-Victoria, bureau 2410
C.P. 336, succ. Tour de la Bourse
Montréal, Québec H4Z 0A2
Tel:514-288-4321
Toll-free: 1-877-288-4321
www.gaa.qc.ca
www.infoinsurance.ca
Institute for Catastrophic Loss Reduction
20 Richmond Street East, Suite 210
Toronto, Ontario M5C 2R9
Tel:416-364-8677
Email:[email protected]
www.iclr.org
Insurance Brokers Association of Canada
18 King Street East, Suite 1210
Toronto, Ontario M5C 1C4
Tel:416-367-1831
Email:[email protected]
www.ibac.ca
Insurance Bureau of Canada
777 Bay Street, Suite 2400
P.O. Box 121
Toronto, Ontario M5G 2C8
Tel:416-362-2031
www.ibc.ca
Insurance Institute of Canada
18 King Street East, 6th Floor
Toronto, Ontario M5C 1C4
Tel:416-362-8586
Toll-free:1-866-362-8585
Email:[email protected]
www.insuranceinstitute.ca
Nuclear Insurance Association of Canada
401 Bay Street, Suite 1600
Toronto, Ontario M5H 2Y4
Tel:416-646-6232
www.niac.biz
Property and Casualty Insurance
Compensation Corporation
20 Richmond Street East, Suite 210
Toronto, Ontario M5C 2R9
Tel:416-364-8677
Email:[email protected]
www.pacicc.ca
Reinsurance Research Council
c/o Funnel Communications Inc.
189 Queen Street East, Suite 1
Toronto, Ontario M5A 1S2
Tel:416-968-0183
Email:[email protected]
www.rrccanada.org
Risk and Insurance Management Society, Inc.
66 Wellington Street West
P.O. Box 1021
Toronto, Ontario M5K 1P2
ontario.rims.org
IBC Facts 2016
61
Surety Association of Canada
Head Office
6299 Airport Road, Suite 709
Mississauga, Ontario L4V 1N3
Tel: 905-677-1353
Email: [email protected]
www.surety-canada.com
British Columbia
Tel: 778-995-6585
Alberta
Tel: 403-612-4070
Quebec
Tel: 514-389-9595
Traffic Injury Research Foundation
171 Nepean Street, Suite 200
Ottawa, Ontario K2P 0B4
Tel:613-238-5235
Toll-free:1-877-238-5235
Email:[email protected]
www.tirf.ca
Underwriters Laboratories of Canada
Customer service: 1-866-937-3852
Email: [email protected]
www.ulc.ca
Montreal area
6505 Trans-Canada Highway, Suite 330
St-Laurent, Quebec H4T 1S3
Tel: 514-363-5941
Ottawa
171 Nepean Street, Suite 400
Ottawa, Ontario K2P 0B4
Tel: 613-755-2729
Toronto
7 Underwriters Road
Toronto, Ontario M1R 3A9
Tel: 416-757-3611
Vancouver area
130 – 13775 Commerce Parkway
Richmond, British Columbia V6V 2V4
Tel: 604-214-9555
62
IBC Facts 2016
ibc.ca
@InsuranceBureau,
@BAC_Quebec,
@IBC_Atlantic,
@IBC_Ontario,
@IBC_West
416-362-2031