Canadian Market (March 01, 2010)

PC FINANCIAL RE-LAUNCHES AS FULL SERVICE BROKERAGE

Loblaw Companies Ltd. has launched PC Financial Insurance Broker Inc., a “large-scale full service brokerage” for home and auto insurance.

The service is available in Ontario and Alberta. Currently it represents the following markets: The Dominion of Canada General Insurance Company; Aviva Insurance Company of Canada; Elite Insurance Company; Pilot Insurance Company; Axa Insurance (Canada); Pembridge Insurance Company and Pafco Insurance Company.

“The transition to a broker model for home and auto insurance will help customers receive the best product and value to suit their needs,” the company says in a press release.

NOVA SCOTIA AUTO INJURY CAP LEADS TO PREMIUM DECREASE OF 23% IN SIX YEARS: IBC

Nova Scotia’s $2,500 cap on minor auto injuries has led to an average auto insurance premium reduction of 23% between the time the cap was implemented in 2003 and August 2009, the Insurance Bureau of Canada (IBC) says in a submission to the government.

The IBC’s submission is part of the Province of Nova Scotia’s review of the cap legislation. The NDP government vowed to review the cap as part of its electroral mandate.

IBC’s submission reviews four potential alternatives to the cap, although it does not take a position on any one of them. They include:

• increasing the cap amount and indexing it to inflation;

• adding to the list of exceptions to the cap (for example, injuries to internal organs; concussions with a confirmed loss of consciousness lasting one or more hours in duration; or fractures to legs/feet and the dominant arm/hand);

• moving to a “first party” or “pure no fault” system; or

• introducing a deductible to replace the cap.

CANADIAN P&C INDUSTRY BOUNCES BACK FINANCIALLY: SCOR REPORT

Financial results published in the SCOR Report 2009 suggest nine Canadian property and casualty insurers appear to be very much on the rebound after the 2008-09 market crash.

The SCOR Report 2009 shows both the individual and collective performances of nine Canadian P&C insurers: Allstate Insurance Company of Canada, BCAA Insurance Corporation, CAA Insurance (Ontario), Desjardins Group, Industrial Alliance, P.E.I. Mutual Insurance, Pafco Insurance Company, Pembridge Insurance Company and Sovereign General.

Collectively, these insurers rebounded from a total net income of just $11.8 million in 2008 (down from $275.5 million in 2007), to a total collective net income of about $206 million in 2009.

Additionally, the companies saw their underwriting results recover from a $51.5-million loss in 2008 to a $60.1-million underwriting profit in 2009. (This compares to the companies’ collective $152.3-million profit in 2007.