Property insurance recovers but auto lines continue to labour

Published: December 2, 2019

Updated: December 4, 2019

Author: Luke Jones



The Office of the Superintendent of Financial Institutions (OSFI) has released third-quarter results for property and casualty insurers in Canada. According to the release, companies are starting to get property lines claims rations under control, but auto lines are still a concern.

OSFI shows claims ratios in liability enjoyed a slight increase in the Comprehensive General Liability (CGL) line. Elsewhere, cyber liability became unprofitable over the third quarter. However, cyber liability is assessed from a much small premium pool. In other words, big claims would have a significant effect in the market and may not reflect a trend.

However, OSFI does point to another trend. Specifically, property lines across personal and commercial showed slight improvement. During the Q3 frame, property insurance companies secured $12.1 billion in net earned premiums. $7.8 billion was paid out in claims, resulting in a 64.4% loss ratio.

Year-on-year, this is an improvement over the 70.4% loss ratio recorded a year ago. In terms of home insurance, carriers took $7.2 billion in net earned premiums and paid $4.4 billion on claims (ratio of 61.1%).

While property insurance showed some recovery, auto lines failed to gain traction. Claims ratios in the sector increased universally across Canada. Once again, auto claims were the driving force behind the increase.