By: Luke Jones, Published on February 14, 2018 01:58 PM, Last Update on February 14, 2018 11:00 AM
Intact Financial Corp. in response to a poor fourth quarter 2017 financial report driven by underperforming auto insurance, says it will apply a premium increase for personal auto across Canada.
The largest property and casualty insurance company in Canada says the increases will help push its personal auto business into profitability.
“In terms of additional rate actions in 2018, we are expecting a further 5% [increase] in rate in 2018,” Darren Godfrey, senior vice president of personal lines for Intact Insurance, said last week.
“We have already received approval for additional rate increases to date in 2018, and we have a number of further filings currently with regulators for approval,” Godfrey said, adding the company “will continue to evaluate and apply for further rate increases if necessary.”
Intact reported a combined ratio in personal auto of 101.2%, for the three month period ending Dec. 21, 2017. This was a 0.3% increase from 100.9% during the same period in 2016. Personal auto combined ratio for full year 2017 was 101.7%, up 1.8 points for 99.9% year-on-year.
Intact has laid the blame on the cost of repairing cars after collisions in the current market.
“Cost pressures related to physical damage are more recent and have accelerated in the last few quarters,” Brindamour said. “That is why we have meaningful rate increases in the pipeline across the country.”