Property and Casualty Insurance Market in Canada - Growth, Trends, and Forecast (2020 - 2025)

The market is segmented by Insurance type (Home, Motor, Others) by Distribution Channel (Direct, Agents, Banks, and others)

Market Snapshot

Study Period:

2016-2025

Base Year:

2019

CAGR:

Less Than 2 %

Major Players:

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Market Overview

  • The Property and casualty insurance market in Canada is estimated to grow at a CAGR of approximately 2% during the forecast period.
  • In 2018, private Canadian insurers wrote CAD 59.6 billion in direct written premiums (CAD 54.1 billion in net written premiums) for insurance on consumers’ homes, cars and businesses. Out of the CAD 54.1 billion in net written premiums, 44.1% was for one line of business: automobile, including commercial vehicle insurance, Personal property, commercial property, and liability made up most of the rest. Specialized lines of insurance, such as boiler and machinery, marine and aircraft, and surety and fidelity, make up about 7.1% of the business. 42.0% of direct written premiums were for car insurance in 2018. In 2018, Canadian P&C (property and casualty) insurers paid out CAD 39.1 billion in claims.
  • In 2018, auto insurance, which is required by law in every Canadian province and territory, accounted for approximately half the insurance business written by P&C (Property and casualty) insurers. There are about 111 private P&C insurance companies competing for auto insurance business in Canada. In addition to these private insurers, government-owned insurers in British Columbia, Saskatchewan, Manitoba and Quebec generally provide the mandatory component of auto insurance in those provinces, in addition to some optional coverages.
  • Private insurers wrote auto insurance policies for a total of CAD 25 billion in direct written premiums in 2018. In 2018, Canadian private P&C insurers paid out CAD 18.2 billion in direct claims incurred to policyholders for all types of auto insurance coverage: third-party liability, accident benefits, collision and comprehensive, and other coverages. Third-party liability claims payouts accounted for 46.6% of all direct claims incurred. Most claims 83.8% were for incidents involving private passenger vehicles.
  • Home insurance is the second-largest line of P&C 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 dependents (with age and other limits). In 2018, private P&C insurers wrote CAD 13.2 billion in direct written premiums for personal property insurance and paid out CAD 7.8 billion for direct claims incurred.

Scope of the Report

This report aims to provide a detailed analysis of the Property and casualty insurance market in Canada. It focuses on the market dynamics, emerging trends in the segments and regional markets, and insights on various product and application types. Also, it analyses the key players and the competitive landscape in the Property and casualty insurance market in Canada.

By Insurance type
Property
Auto
Others
By Channel of Distribution
Direct
Agency
Banks
others

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Key Market Trends

Increase in Adoption of Artificial Intelligence in Property and Casualty Insurance

Non-life insurers increasingly use AI and machine learning across customer-facing and back-end applications. The objective is to better assess risks in underwriting, strengthen fraud detection, improve customer experiences and reduce operating overhead. While P&C insurers have been slower to digitize, telematics use has picked up sharply. Similarly, mobile applications and web portals are more commonly used by brokers and consumers for efficient claims submission and processing. Ultimately, these technologies help reduce administrative overhead and improve the customer experience.

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Year on Year Increase in Net Written Premium

Net written premium is increasing year on year, major premium is receiving from auto insurance which nearly 44.1% of the net written premium. This is expected to increase further in the coming years, Government are planning to change the auto insurance policies as Vehicles with fully automated capabilities are coming to Canada’s roads. In 2018, Out of total net premium written personal property share was 22.2%, commercial property was 14.2%, Liability was 10.2% Specialized was 7.1% and accident and sickness were 2.3%.

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Competitive Landscape

The report covers the major players operating in the Property and casualty insurance market in Canada. The market is Consolidated, the market is expected to grow during the forecast period due to several factors that are driving the market.

Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porters 5 Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Insurance type

      1. 5.1.1 Property

      2. 5.1.2 Auto

      3. 5.1.3 Others

    2. 5.2 By Channel of Distribution

      1. 5.2.1 Direct

      2. 5.2.2 Agency

      3. 5.2.3 Banks

      4. 5.2.4 others

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 Intact Group

      2. 6.3.2 Aviva Group

      3. 6.3.3 Desjardins Group

      4. 6.3.4 Co-operators Group

      5. 6.3.5 TD Insurance Group

      6. 6.3.6 Wawanesa Mutual Insurance Company

      7. 6.3.7 RSA Group

      8. 6.3.8 Economical Group

      9. 6.3.9 Travelers Group

      10. 6.3.10 Northbridge Group

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

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