2013-03-13 17:41:22 - Recently published research from Business Monitor International, "Canada Insurance Report Q2 2013", is now available at Fast Market Research

As of early 2013, the strength and dynamism of Canada's insurance sector remains obvious. The life companies are world-class, multi-faceted financial services organisations that clearly have the capacity to sustain growth almost regardless of developments in the Canadian life segment. The non-life companies are benefiting from improved profitability, thanks in part to their pricing power and in part to the motor insurance reforms in Ontario.

Key Insights And Key Risks

Although the details vary from quarter to quarter, newsflow from Canada's insurance sector continues, in late-2012, to highlight its strength and dynamism. In both the non-life and the life segment, the main players have scale, access to capital (even if they are mutuals), financial strength, well recognised brands, and clearly enunciated strategies

for growth. In each case, business is developing as a result of at least one of the following factors: increased numbers of policies and policy-holders; firming prices; changes to distribution arrangements; product innovation; acquisition of rival businesses in Canada, and expansion in markets overseas in ways that exploit the competitive advantage of the company in question. As has been the case for a while, a major challenge comes from pervasive low interest rates and, for some companies, the general volatility of equity markets.


Full Report Details at
- www.fastmr.com/prod/552271_canada_insurance_report_q2_2013.aspx


The comments of the major life companies in relation to their operations through the first six months of the year highlight how demand for long-term savings products continues to grow. In part because of the general shift from defined benefit to defined contribution solutions, in part because of the greying of the population and in part because of the opportunities seen by the distributors of the products, each one of the major players in the segment is reporting good growth in at least part of its business. In many cases, particular lines are (not) growing because of active decisions to focus on areas that are particularly profitable.

Virtually all the players are benefiting from not being 'pure' Canadian life insurance companies, in that they have (very) substantial operations outside the country and/or see life insurance as a part of a much wider offering of financial services solutions.

A number of positive trends are also evident in the non-life segment. For instance, the reforms implemented by the Ontario government to limit inflation in claims costs are beginning to bear fruit, with many of the non-life companies that write auto-related business in the province reporting an improvement in profitability. Catastrophe related claims through H112 have been far lower than in the previous corresponding period, thanks to the mildness of the 2011-12 winter. To the extent that non-life companies have been exposed to increased reinsurance costs (with rates rising markedly for earthquake cover in British Columbia, for instance), the non-life companies have generally had sufficient pricing power that they have been able to pass these on to their customers. Our projections for the development of premiums during 2012 as a whole are consistent with the companies' own reports, which point to the non-life segment growing by around 5%. Particular companies continue to realise benefits from past acquisitions: Intact Financial Corporation's purchase of AXA Canada in mid-2011 is the most obvious example of this.

Report Table of Contents:

BMI Industry View
- Table: Total Premiums, 2010-2017
SWOT
- Insurance
- Economic
- Political
Industry Forecast
- Life
- Table: Total Life Premiums, 2010-2017
- Non Life
- Table: Total Non Life Premiums, 2010-2017
Industry Risk Reward Ratings
- Table: Canada's Insurance Risk/Reward Ratings
- Table: Developed States Insurance Risk/Reward Ratings
Market Overview
- Life Sector Update
- Non Life Sector Update
Industry Trends And Developments
- Life Growth Drivers And Risk Management Projections
- Population
- Table: Insurance Key Drivers, Demographics 2010-2017
- Non Life Growth Drivers And Risk Management Projections
- Macroeconomic Outlook
- Table: Canada - GDP By Expenditure, Real Growth %
- Political Stability Outlook
- Table: Developed States Security Risk Ratings (scores out of 100, with 100 the best)
- Healthcare Insurance
- Table: Sustainability Of Public Health Expenditure And Pharmaceutical Approval Indicators
- Epidemiology
- Table: Insurance Key Drivers, Disease Adjusted Life Years 2010-2017
- Autos
- Table: Insurance Key Drivers, Autos, 2010-2017
Competitive Landscape
Company Profile
- Desjardins Financial Security/Desjardins General Insurance
- Economical Insurance
- Fairfax Financial Holdings
- Great-West Lifeco Inc
- Intact Financial Corporation
- Manulife Financial
- RBC Insurance
- RSA
- Standard Life
- Sun Life Financial
- Wawanesa Insurance
Regional Overview
- Developed States Life Sector Overview
- Table: Developed States Life Premiums, 2010-2017
- Developed States Non Life Sector Overview
- Table: Developed States Non-Life Premiums, 2010-2017 (US$mn)
Demographic Forecast
- Table: Canada's Population By Age Group, 1990-2020 ('000)
- Table: Canada's Population By Age Group, 1990-2020 (% of total)
- Table: Canada's Key Population Ratios, 1990-2020
- Table: Canada's Rural And Urban Population, 1990-2020
Methodology
- Insurance Risk/Reward Ratings
- Table: Insurance Risk/Reward Ratings Indicators And Rationale
- Weighting
- Table: Weighting Of Indicators

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