By: Luke Jones, Published on February 27, 2018 05:41 PM, Last Update on February 27, 2018 02:45 PM
RSA Canada describes the country’s insurance climate as a “tough market” and has suffered in auto lines as much as any company. Despite that, RSA enjoyed a solid 2017 of growth. Auto concerns aside, the company generated profit of $280 million and an excellent overall combined ratio of 93.9% during 2017.
What is the reason for such a success in the difficult market? RSA Canada says it is all down to a strong relationship with brokers. That seems a novel thing in a market that increasingly pushes against the broker network, but RSA insists it’s a model that works. With net premiums up 5% in Canada and personal broker business hit 9% net written premium during 2017.
“We’re really proud of the strength of our performance in what I would describe as quite a tough insurance environment,” commented Martin Thompson, president and CEO of RSA Canada. “We’ve delivered in a background where weather has continued to be a challenge for us, the auto insurance environment hasn’t been doing us any favours, and we’ve had a tougher than expected year of large losses.”
Thompson says the continued commitment to the broker channel has helped fuel RSA’s impressive growth. Despite the clear problems in auto insurance, with claims rising and repairs costs also increasing, RSA Canada’s personal lines broker business still broke even last year.
“We’ve spent a lot of time and focus over the last three years focusing on improving our delivery to our brokers,” Thompson added. “We believe we’re achieving these results because we’ve become better at pricing and better in terms of our delivery to our brokers.
“Moving on, our focus will continue to be about delivering for our brokers, and making sure we’re always improving ourselves as a company to do business with – whether that’s through sharper pricing, better operational delivery, creativity or technology. We want to give brokers tools that will enable them to interact with us in a much more efficient way.”