Canadian Market (January 01, 2010)

PROVINCIAL REGULATORS ASK FOREIGN INSURERS TO SIGN VOLUNTARY UNDERTAKING RELATED TO PART XIII

Canada’s provincial insurance regulators are asking foreign insurers to sign a common undertaking outlining how the signatories are expected to conduct their business following the Office of the Superintendent of Financial Institution (OSFI)’s Part XIII amendments.

The insurers’ decision to sign the undertaking is purely voluntary. The failure to sign will not be sanctioned.

Provincial regulators say the common undertaking is designed “in an effort to mitigate the confusion that might result from foreign insurers dealing with each [provincial] regulator separately” subsequent to the implementation of OSFI’s Part XIII amendments.

The full wording of the undertaking, plus supporting documentation, can be found at the CCIR Web site at: http://www.ccirccrra.org/CCIR/Ptxiii_UTing/index_en.h ALBERTA-REGULATED INSURERS SELL MORE PREMIUM, BUT CLAIMS RATIOS INCREASE

Provincially regulated property and casualty insurers in Alberta wrote Cdn$8.04 billion in premium in 2008, marking an increase from 2007’s Cdn$7.5 billion, according to the Superintendent of Insurance’s Annual Report.

The direct claims ratio in 2008 rose to 61.3% from 56.9% in 2007.

Automobile claims ratios increased year-over-year — from a 61.3% claims ratio in 2007 to 73.4% in 2008.

Property remained flat at 63.7% in 2007 to 63.4% in 2008.