Canada Home Insurance Market - Growth, Trends, COVID 19 Impact, and Forecasts (2022- 2027)

The Canada Home Insurance Market is segmented by Home Insurance Type (Comprehensive, Standard, and Others), and By Channel of Distribution (Independent Advisers, Banks, Company Agents, Online, and Other Channels).

Market Snapshot

Canada Home Insurance Market
Study Period: 2018-2027
Base Year: 2021
CAGR: <9 %

Need a report that reflects how COVID-19 has impacted this market and its growth?

Market Overview

The purchase of a home or personal property insurance is not mandated by law. However, it provides coverage for an individual’s single largest investment – a home. In fact, most banks and mortgage holders require proof of insurance on the property as security for the loan or mortgage. As the second-largest line of P&C insurance business after auto insurance, home or personal property insurance includes home, condominium, cottage, mobile home and tenant’s insurance. It covers the property, personal belongings and personal liability of the policyholder and the policyholder’s spouse or partner, children (with age limits) and dependants (with age and other limits). As with all insurance premiums, insurers consider several risk factors to determine the price they charge an individual for home insurance. For example, insurers look at the neighbourhood and the frequency and types of past claims in that area; the cost to replace a home’s contents and restore a home to its previous condition; the condition and age of the roof; the type of heating, electrical and plumbing systems; and details about any additional structures on the property. Insurers analyse these risks to estimate how likely it is that a policyholder, or a group of people with a similar set of circumstances, will make a claim and how much that claim will cost.

COVID-19 may have affected the earnings of individual P&C insurers unevenly, but the industry’s overall capital base reached the unparalleled height of Canadian Dollars 52.6 billion during the first three quarters of 2020, according to the Property and Casualty Insurance Compensation Corporation (PACICC). This is the most capital that insurers have ever held in Canada. Strong, resilient capital is the foundation of the insurance industry and this firm base should allow insurers to play a strong role in assisting Canada’s rebound from the COVID-19 pandemic in 2021.

In 2020, Canadian insurers wrote Canadian Dollar 71.0 billion in direct written premiums for insurance on consumers’ homes, cars and businesses. Over the last few years, Canadians from coast to coast have been experiencing significant financial losses from many small severe weather events. While 2016 was notable in having the largest insured loss event with the Fort McMurray wildfire, every year since has ranked within the top 10 highest loss years on record. This underscores the need for Canadians to adapt and prepare for severe weather events.

Scope of the Report

Home Insurances are one of the most widely demanded products as people are adopting urbanisation. A complete background analysis of the Canada Home Insurance Market, which includes an assessment of the economy, market overview, market size estimation for key segments, and emerging trends in the market, market dynamics, and key company profiles are covered in the report. The Canada Home Insurance Market is segmented by Home Insurance Type (Comprehensive, Standard, and Others), and By Channel of Distribution (Independent Advisers, Banks, Company Agents, Online, and Other Channels). 

By Policy Type
Comprehensive
Standard
Others
By Channel of Distribution
Independent Advisers
Banks
Company Agents
Online
Other Channels

Report scope can be customized per your requirements. Click here.

Key Market Trends

CATASTROPHIC LOSSES

Insured losses for a given disaster are deemed catastrophic when they total Canadian Dollars 25 million or more. Catastrophic losses for a year are the sum total of insured losses from these catastrophes. Catastrophic losses due to natural disasters have increased dramatically over the last decade.

T1

PREMIUMS

The price for premiums is based, in part, on an insurer’s best estimate of the amount it will be required to pay out in claims on the policies it wrote in any given year. Insurers pool the premiums of their many policyholders to cover the losses claimed by the few in that year. Of the Canadian Dollars 62.7 billion in net written premiums, 43% was for one line of business: automobile, including commercial vehicle insurance. Personal property, commercial property and liability made up most of the rest.

T2

Competitive Landscape

Companies across the world have huge investments in this segment of the market. In Canada, the Home Insurance market has many companies fragmented over minor shares. Intact Group, Desjardins Group, Aviva Group, The Co-operators Group, Lloyd's Underwriters, TD Insurance Group, RSA Group, Economical Group, Northbridge Group, Allstate Group are amongst the Home Insurance Companies.

Adoption of technological platforms and up-gradation to new technology leads to increased competition amongst the company. Innovation and technological advancement taking a pace as the COVID-19 and natural calamities are increasing in the Canadian region.

Recent Developments

P/C Agency Mergers Rise 10% in First Half of 2021 - There were 339 announced property/casualty insurance agency mergers and acquisitions during the first half of 2021, up from 307 in 2020.

CMHC Changes Underwriting Practices on Mortgage Loan Insurance - Canada Mortgage and Housing Corp. is easing its underwriting criteria for mortgage loan insurance after changes it made last year were not effective and caused it to lose market share. The federal housing agency said that it returned to considering a gross debt service ratio of up to 39 per cent and a total debt service ratio of up to 44 per cent for borrowers who have a strong history of managing payment obligations. Gross debt service refers to the maximum amount of gross annual income that can be used for home-related expenses like mortgages, heat or condo fees, while total debt service is calculated when these expenses are combined with monthly debt payments owed on items such as credit cards or cars.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Insights on Regulatory Landscape Shaping The Market

    5. 4.5 Insights on Technological Advancements Shaping the Insurance Ecosystem in Canada

    6. 4.6 Porter's Five Forces Analysis

    7. 4.7 Consumer Behaviour Analysis

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Policy Type

      1. 5.1.1 Comprehensive

      2. 5.1.2 Standard

      3. 5.1.3 Others

    2. 5.2 By Channel of Distribution

      1. 5.2.1 Independent Advisers

      2. 5.2.2 Banks

      3. 5.2.3 Company Agents

      4. 5.2.4 Online

      5. 5.2.5 Other Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 Intact Group

      2. 6.2.2 Desjardins Group

      3. 6.2.3 Aviva Group

      4. 6.2.4 The Co-operators Group

      5. 6.2.5 Lloyd's Underwriters

      6. 6.2.6 TD Insurance Group

      7. 6.2.7 RSA Group

      8. 6.2.8 Northbridge Group

      9. 6.2.9 Allstate Group

      10. 6.2.10 Economical Group*

    3. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. DISCLAIMER AND ABOUT US

You can also purchase parts of this report. Do you want to check out a section wise price list?

Frequently Asked Questions

The Canada Home Insurance Market market is studied from 2018 - 2027.

The Canada Home Insurance Market is growing at a CAGR of <9% over the next 5 years.

Intact Group, Desjardins Group, Aviva Group, The Co-operators Group, Lloyd's Underwriters are the major companies operating in Canada Home Insurance Market .

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Please enter a valid email id!

Please enter a valid message!