By: Luke Jones, Published on May 30, 2018 09:16 PM, Last Update on May 30, 2018 06:18 PM
Property and casualty insurance companies in Canada have paid more in claims so far this year than they did compared to the same period in 2017. Canada’s solvency regulator says companies have paid $585 million over last year’s amount.
As a result, net incurred claims costs in auto increased by 165.4% during the first quarter of 2018. The figures were released this week by the Office of the Superintendent of Financial Institutions (OSFI).
It was better news for direct written premiums, which remains relatively static by decreasing 1% through the first three months of the year.
The presented data matches a general view of Canada’s auto insurance market. Most would agree the claims market is worrying, with more collisions and the cost of repairs, coupled with increasing problems like distracted driving.
Several leading insurers have confirmed they will raise auto insurance premiums, including Aviva Canada and Intact Insurance, the two largest P&Cs in the country.