Best’s Market Segment Report: Weather-Related Losses Continue to Fuel Volatility for Canada’s Property/Casualty Insurers; AM Best Maintains Stable Outlook on Sector
Despite a manageable level of catastrophe activity during the first half of 2024, Canada’s property/casualty (P/C) insurers faced four major events in this year’s third quarter which should lead to another record year for losses, according to a new AM Best report.
Losses due to catastrophe events in 2023 are estimated to have reached
“Canada’s P/C insurance industry managed to achieve favorable financial results, with net income up an astounding 77.5%, from
However, Canada’s P/C segment will continue to face challenges from growing frequency and severity of extreme catastrophe weather events, continued increases in reinsurance coverage costs and ongoing pressure in the personal auto lines business.
Canada’s P/C reinsurance industry plays a pivotal role in providing financial stability to primary insurers given the increase in weather-related events affecting the country. The market consists of domestic reinsurers that are part of large international players. Earlier this year, AM Best upgraded its market segment outlook for the global non-life reinsurance industry to positive from stable. This upgrade reflected the industry’s strong profit margins, higher attachment points, and tighter terms and conditions following a period of significant repricing.
“Canada’s P/C market made extensive changes in the terms, conditions, and structures of reinsurance programs during the 2023 reinsurance renewal season, leading to significant premium increases for primary insurers,” Mirabella said. “The unprecedented wildfire season throughout the year and the increase in flooding events, concentrated regional carriers have been disproportionately impacted by additional reinsurance rate increases.”
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=347964.
To view a video on this report with
AM Best will host an insurance market briefing on the state of Canada’s insurance industry in
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Source: AM Best
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