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Home > Financial Services >  Insurance >  General Insurance >  General Insurance Market in Canada 2021-2025 Report – Market Size, Share, Trends, Analysis & Forecasts by Line of Business – Property Insurance, Motor Insurance, Liability Insurance, Financial Lines Insurance, Marine, Aviation and Transit Insurance, Non-life Personal Accident and Health Insurance

General Insurance Market in Canada 2021-2025 Report – Market Size, Share, Trends, Analysis & Forecasts by Line of Business – Property Insurance, Motor Insurance, Liability Insurance, Financial Lines Insurance, Marine, Aviation and Transit Insurance, Non-life Personal Accident and Health Insurance

The total gross written premium of general insurance market in Canada was valued at US$55.30 billion in 2020. The market is projected to grow at a CAGR of more than 5% during the period 2021-2025. Restrictions in foreign trade and suspension on travel impacted the growth of marine, aviation and transit insurance and travel insurance segments negatively in 2020. However, strong government initiatives supported the growth of the Canadian general insurance market in 2021.

Property insurance was the largest line of business in 2020 followed by motor insurance, liability insurance, financial lines insurance, non-life personal accident and health (PA&H) insurance, and marine, aviation and transit (MAT) insurance, respectively. Property insurance and liability insurance segments are expected to exhibit significant growth during the projected period.

Overview of general insurance market in Canada

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What are the market dynamics in general insurance market in Canada?

According to the GlobalData’s Banking and Payments survey, over 40% of customers preferred purchasing home buildings and content insurance (property insurance) directly from the insurer, while for motor it was more than 42%. Direct insurers were the most sought-after channel, with an over 60% preference rate among customers aged 18-24 for property insurance. Insurance brokers were the second most preferred channel among all age groups. 

Increasing data breaches globally has generated strong demand for cyber insurance in Canada as well. Canada recorded the third highest average cost for data breaches globally, with majority caused by hackers between May 2019 and April 2020. Small and medium scale businesses were affected the most during these cyberattacks, encouraging insurers to include cyber cover for SMEs as well.

With the evolving motor insurance market, developments related to autonomous vehicle, usage-based insurance and electric vehicles are a focus area of Canadian motor insurers. Currently, motor liability insurance for autonomous vehicles applicable in Canada is based on human error. However, accidents resulting from product malfunctions and product liability claims are expected to evolve the insurance landscape. Usage based insurance plans are also being promoted by regulators to contain premium costs.

While new technologies such as those in artificial intelligence are a key focus, for many insurers legacy systems play an important role. This tends to shape the demand for cloud-based services that can be integrated with the existing framework for better customer service. Some of the key insurtech solutions include lead management systems, as well as customer relationship systems where brokers are key in enabling a better customer interface.

What are the lines of business in Canada’s general insurance market?

Property, motor, and liability insurance accounted for over 90% of the total general insurance business in 2020, while other lines of business contributed the remaining. 

Property insurance market in Canada

Property insurance, which accounted for highest share in the general insurance business in 2020, is expected to grow moderately in 2021. The growth, however, is expected to be driven by an increase in premium prices. Over 90% of the total property insurance business is accounted by home multi-risk and commercial/industrial multi-risk lines.

Motor insurance market in Canada

Motor insurance segment is expected to grow moderately during the forecast period. In Canada, motor insurance premium rates vary widely between provinces. Some of the provinces stand out for the high motor insurance premiums, which are mainly attributable to the rise in the number and cost of claims, as well as the related legal costs incurred. Besides, fraudulent claims constitute another factor driving up the costs for insurers.

Liability insurance market in Canada

Tough market conditions led to price hardening in many liability lines, including professional indemnity, in the 2021 renewals. In addition, employment liability was stable during the review period, with insurers adopting a better underwriting risk approach. Also, increased dependency on digital platforms and IT services due to the pandemic have increased vulnerability to cyber risks, emphasizing the relevance of cyber liability insurance. This presents an opportunity for cyber risk insurers to expand their business over the forecast period. 

Financial lines insurance market in Canada

Market withdrawal, coupled with stringent underwriting by new entrants, contributed towards hard market conditions for financial lines, with premiums growing above 30% in the 2021 renewals. Sectors such as mining, oil and gas, cannabis, hospitality, travel, and healthcare and long-term care facilities, and retail represented the riskiest financial lines underwriting in Canada.

Marine aviation and transit (MAT) insurance market in Canada

Following persistent soft market conditions, Canada’s marine insurance observed an increase in premium rates, attributable to a rise in catastrophe losses and market withdrawal during 2017-2019. Also, price hardening in both marine and aviation accounts recorded a further increase in renewal pricing in the January 2021 renewals.

Personal accident and health (PA&H) insurance market in Canada

Packaged plans are gaining popularity in Canada, which includes one plan for medical, death, accident, disability, death, and dismemberment. Coverage under the plan changes from province to province, but it generally includes all the coverage mentioned above. Demand for supplementary health plans has also gained momentum as these cover healthcare costs that are not covered by public health plans, such as prescription drugs, dental, vision, hospitalization, and other services.

General insurance market in Canada, by line of business

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General reinsurance market in Canada

On the underwriting side, reinsurers were adversely affected with higher retrocessional costs, catastrophe losses and declining US casualty business. According to the insurance legislation, there are neither mandatory cession requirements for local insurers nor prudential requirements for foreign unauthorized reinsurers to accept reinsurance business in Canada. Fronting is not prohibited in the country. However, fronting arrangements are not commonly practiced, as it is a developed insurance industry with access to non-admitted insurers. 

Who are the major players in Canadian general insurance market? 

In the Canadian general insurance market, the top five companies accounted for a combined market share of more than 35% in 2020. Among the top 10, there were seven domestic insurers which together held a share of more than 40% in 2020. Intact Insurance Company was the leading market player followed by Lloyd’s Underwriters, Aviva Insurance Company of Canada, The Wawanesa Mutual Insurance Company, and Co-operators General Insurance Company.

The Canadian general reinsurance market was dominated by top five reinsurers that accounted for more than 70% share in 2020. Swiss Re was the leading reinsurer while Hannover Rück Se was the fastest growing company during the review period.

M&A activities remained strong during the review period, and this trend is expected to continue over the forecast period, driven by investments in digital technology and product innovations.

General insurance market in Canada, by key players

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Scope

Market size (Year – 2020)US$55.30 billion (Gross Written Premiums)
Growth rateCAGR of >5% from 2021 to 2025
Base year for estimation2020
Segmentation by line of businessProperty Insurance, Motor Insurance, Liability Insurance, Financial Lines Insurance, Marine Aviation and Transit (MAT) Insurance, Personal Accident and Health (PA&H) Insurance
Forecast period2021-2025
Key playersIntact Insurance Company; Lloyd’s Underwriters; Aviva Insurance Company of Canada; The Wawanesa Mutual Insurance Company; Co-operators General Insurance Company; Security National Insurance Company; Certas Home and Auto Insurance Company; Economical Mutual Insurance Company; Allstate Insurance Company of Canada; Northbridge General Insurance Corporation

This report provides a comprehensive analysis of the general insurance market in Canada. It provides:

  • Historical values for Canadian general insurance segment for the report’s 2016-2020 review period, and projected figures for the 2021-2025 forecast period.
  • Detailed analysis of the key categories in Canadian general insurance segment, and market forecasts to 2025.
  • Profiles for the top general insurance companies in Canada, and outlines the key regulations affecting them.

 

 

Key Highlights

  • What is the gross written premium value for general insurance market in Canada in 2020?

    • The total gross written premium of general insurance market in Canada was valued at US$55.30 billion in 2020.

  • What is the growth rate of general insurance market in Canada?

    • The general insurance market in Canada is projected to grow at a CAGR of more than 5% during the period 2021-2025.

  • What are the key lines of business in Canadian general insurance market?

    • Key lines of business in Canada’s general insurance market includes Property Insurance, Motor Insurance, Liability Insurance, Financial Lines Insurance, Non-Life Personal Accident and Health (PA&H) Insurance, and Marine, Aviation and Transit (MAT) Insurance.

  • Who are the key players in the Canadian general insurance market?

    • Intact Insurance Company is the leading player in the general insurance market in Canada followed by Lloyd’s Underwriters, Aviva Insurance Company of Canada, The Wawanesa Mutual Insurance Company, and Co-operators General Insurance Company.

  • Who are the key players in the Canadian general reinsurance market?

    • Swiss Re is the leading player in the Canadian general reinsurance market followed by Hannover Rück Se, Everest Re, Scor Canada, and Munich Re.

  • Who are the key insurtech companies in the Canadian insurance market?

    • Key insurtech companies in Canada include Zensurance, Besure, PolicyMe, Breathe Life, Allset and ratehub.ca.

Reasons to Buy

  • Make strategic business decisions using in-depth historic and forecast market data related to Canadian general insurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends and growth opportunities in the Canadian general insurance segment.
  • Assess the competitive dynamics in the general insurance segment.
  • Identify growth opportunities and market dynamics in key product categories.

Companies Mentioned

Intact Insurance Company

Lloyd’s Underwriters

Aviva Insurance Company Of Canada

The Wawanesa Mutual Insurance Company

Co-operators General Insurance Company

Security National Insurance Company

Certas Home and Auto Insurance Company

Economical Mutual Insurance Company

Allstate Insurance Company of Canada

Northbridge General Insurance Corporation

Table of Contents

Table of Contents

Executive Summary

Economy Overview

Regulatory and Compliance

Key Market Trends

Summary Trends and KPIs

Key Trends by Line of Business

Property Insurance

Motor Insurance

Liability Insurance

Financial Lines Insurance

Marine, Aviation and Transit Insurance

Personal Accident and Health Insurance

Distribution Channels

Competitive Landscape

Competitor Profiles

Reinsurance

Regulatory and Compliance

Competitive Landscape

Insurtech

Appendix

    Pricing

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