Top 20 auto insurers

Early trends from reforms encouraging, says #4 insurer State Farm Canada.

Intact holds tight to the #1 spot in Canadian Insurance Top Broker’s list of top 20 auto insurers based on direct written premiums in 2010 (see full list below). These results are featured in the Canadian Insurance Top Broker 2011 Annual Statistical Issue, now available. For more information on the Annual Statistical Issue, click here.

John Bordignon, media relations specialist at State Farm Canada (#4 auto insurer based on direct written premiums in 2010) discusses some of the greatest challenges in Canadian auto insurance right now, and how the industry is preparing for the year ahead.

Q. What are some of the main trends in Canadian auto insurance right now and what can the industry expect in the second half of 2011?

A. We expect to see continuing interest in more sophisticated pricing segmentation as a means to better match price to risk. The General Insurance Statistical Agency (GISA) is looking for insurers to improve the timeliness and accuracy of auto statistical plan elements. They are also considering requiring insurers to capture more information on clients in order to provide regulators and actuaries more granular information for analysis. Insurers and vendors with the most and best data will lead the way with predictive pricing models.

Growth in frequency of new Bodily Injury (BI) claims is being reported. We expect to see that continue to grow as the limitations of coverage under the Statutory Accident Benefits Schedule (SABS) takes hold and claimants seek compensation from the other side of the policy where applicable.

Early trends from Accident Benefits (AB) product reform are encouraging. A large majority of claimants are falling within the Minor Injury Guideline (MIG); however, most of the claimants are in the MIG as a result of an insurer’s examination. Most providers are submitting OCF 18s (meaning they believe their client’s injuries pierce the MIG) on behalf of their clients. We are likely years from the arbitration hearings that will ultimately rule on the strength of the MIG.

Q. The Ontario Auto Reforms remain challenging despite the fact it’s been 9 months since they were introduced. What should the role of brokers/agents be during this ongoing transition?

A. Agents can help by taking completed claim reports and identifying all of the parties involved in all losses. Complete information allows the claim representative to build the investigation of the claim faster and provide answers on coverage as expeditiously as possible.

Agents must continue to ensure data collection is accurate or is correct from the time the product is sold or insurers will face more stiffened deficiency fees.

With a product such as insurance, where few clients have a claim in a given year, it is more important than ever to ensure that every customer contact creates value in the client’s mind. This brings the challenge for insurers and brokers/agents to learn new ways to discuss pricing with their clients.

Here are the top 20 auto insurers (based on direct written premiums in 2010).

  1. Intact Financial ($2,547,953)
  2. TD Insurance ($1,761,642)
  3. Aviva Canada ($1,706,504)
  4. State Farm Mutual Auto ($1,440,923)
  5. Wawanesa Mutual Insurance ($1,163,881)
  6. RSA Canada Group ($1,116,124)
  7. Co-operators Group ($1,104,241)
  8. Desjardins General ($1,041,518)
  9. Economical Insurance Group ($923,059)
  10. AXA Canada ($894,819)
  11. Dominion of Canada ($787,969)
  12. Northbridge Financial ($548,252)
  13. Allstate Insurance of Canada ($453,688)
  14. RBC General Insurance ($378,501)
  15. Capitale Assurance General ($267,470)
  16. Jevco Insurance ($282,515)
  17. Ontario Mutual Insurance Association ($248,862)
  18. SGI Canada ($194,494)
  19. Alberta Motor Association ($193,062)
  20. Zurich Insurance ($192,821)

*all figures for direct written premiums are $,000

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