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Facts of the Property and Casualty Insurance Industry in Canada 2016

Facts of the Property and Casualty Insurance Industry in Canada 2016 is published by Insurance Bureau of Canada (IBC). IBC is the trade association representing Canada’s private property and casualty (P&C) insurance companies. Since 1972, IBC has published Facts to provide a snapshot of the state of the P&C insurance industry.

The data in Facts 2016 come from several national and international sources, including IBC. Data are from 2014, 2015 or 2016, depending on when sources released their information.

In some instances, figures may not add up to 100% as a result of rounding. Also, because sources collect data in different ways, there can be small differences among similar data.

38th edition, 2016 ISSN 1197 3404

© Insurance Bureau of Canada. All rights reserved.

IBC Facts 2016 1

President’s message

The time has come to get serious about

addressing climate change in Canada.

And IBC is ready.

For more than a decade, IBC has been reporting

on a rise in claims as a result of increases in

severe weather events related to climate

change. We shared these alarming figures

with consumers and knocked on the doors of

provincial and federal governments to alert

politicians of the costs their constituents are

facing. We urged government officials to create

a robust culture of resilience.

While our reports garnered accolades from

climate change experts, governments were

focused on other priorities.

Then in May 2015, Albertans elected a new

government on a platform that included flood

mitigation efforts. A few months later, Canadians

elected a new government in Ottawa that

pledged $5.6 billion over the next four years

in “green infrastructure,” including flood

mitigation systems.

IBC has developed a Natural Catastrophe Strategy

for Canada that encourages the industry and

federal government to collaborate on two risks

– flood and earthquake. We’re in discussions

with the federal government on a collaborative

national flood program. And by hosting two

earthquake symposiums – one in British

Columbia in 2014 and another in Quebec in

2015 – we’ve laid the groundwork for earthquake

preparedness.

While IBC’s climate change efforts advance, some

of our auto insurance files remain a challenge.

We have made progress on the Ontario Auto

insurance file, but consumers in the province

are still paying too much for car insurance. Also

in need of reform is auto insurance in Alberta.

The industry is working with both provincial

governments on reforms to save drivers money.

In addition, we are monitoring automobile

innovations and their effect on insurance.

There are certainly challenges ahead, but I remain

optimistic. Canada’s P&C insurance industry is

healthy and strong. Our industry is striving to

meet these new challenges with innovative new

products for our customers’ changing needs.

These are exciting times!

Don Forgeron President and CEO,

Insurance Bureau of Canada

2 IBC Facts 2016

Contents

Section three

49–62Insurance organizations50 IBC members55 IBC offices56 IBC services57 Superintendents of insurance59 Insurance-related organizations

Section two

25–48Canada’s P&C insurance industry by line of businessAuto insurance26 Mandatory insurance26 Optional insurance27 “No-fault” insurance28 What’s mandatory where40 Premiums and claims41 Average losses42 Major issues Home insurance44 Types of coverage45 Premiums and claims45 Major issues Business insurance47 Types of coverage48 Premiums and claims48 Major issues

Section one

3–24Canada’s P&C insurance industry, all sectors4 Industry at a glance - updated to 20156 Premiums - updated to 2015 8 Insurance dollar - updated to 20159 Claims - updated to 2015 10 Taxes and levies12 Operating expenses - updated to 201513 Profit - updated to 201516 Catastrophic losses - updated to 201524 Regulation and regulatory issues

IBC Facts 2016 3

1

Canada’s P&C insurance industry, all sectors

4 Industry at a glance - updated to 20156 Premiums - updated to 2015 8 Insurance dollar - updated to 2015 9 Claims - updated to 2015 10 Taxes and levies12 Operating expenses - updated to 201513 Profit - updated to 201516 Catastrophic losses - updated to 201524 Regulation and regulatory issues

Industry at a glance

The P&C insurance industry employed 122,500 people across Canada in 2015

42.2% of direct written premiums were for car insurance in 2015

Of its $161.7 billion in total assets, the P&C insurance industry had $114.6 billion in invested assets in 2015

In 2015, Canadian insurers wrote $51.9 billion in direct written premiums for insurance on consumers’ homes, cars and businesses

$8.2 billion – the amount the P&C insurance industry contributed in taxes and levies to federal and provincial governments in 2014

Property claims as a percentage of total claims have risen significantly over the last decade

24.4%

30.9%

IBC Facts 2016 5

More than half of every dollar of revenue received by insurers is paid out in claims

51.1% - claims paid out to policyholders

20.7% - operating expenses including employee compensation

16.0% - taxes and levies

8.2% - profit margin

More than 207 private P&C insurers actively compete in Canada

6 IBC Facts 2016

Top 20 private P&C insurers by direct written premiums, 2015

Rank Company %1 Intact Group 15.592 Aviva Group 8.053 Desjardins Group 8.024 TD Insurance Group 6.025 RSA Group 5.606 Wawanesa Mutual Insurance Company 5.377 Lloyd's Underwriters 5.288 Co-operators Group 5.239 Economical Group 3.93

10 Travelers Group 2.9111 Allstate Group 2.6912 Northbridge Group 2.5113 AIG Insurance Company of Canada 2.2714 Chubb Group 2.0415 RBC Group 1.8416 Zurich Insurance Company Ltd. 1.8417 La Capitale Group 1.7218 Genworth Financial Mortgage Insurance 1.5819 Guarantee Company of North America 0.8920 Green Shield Canada 0.89

Sources: IBC, MSA

Insurance premiums are determined based on risk. Insurers consider the likelihood of a customer (or a group of customers with the same set of circumstances) making a claim, and how much those claims will likely cost. The price for premiums is based, in part, on an insurer’s best estimate of the amount it will be required to pay out in claims on the policies it wrote in any given year. Insurers pool the premiums of their many policyholders to cover the losses claimed by the few in that year. Along with covering claim costs, premiums are calculated to cover taxes, operating expenses and expected profits.

The requirement to estimate future costs is a unique challenge in the insurance business. Most businesses can calculate the actual costs of producing and selling a product before the selling price is determined. However, when setting premiums, P&C insurance companies can only estimate the costs of the medical treatments, car repairs or house repairs they will have to pay in the future.

Consumers often find this confusing and are unsure about what a premium represents. Many think of their premiums as a bank account – it is there just for them in case of a loss. But that’s not how it works.

Insurance companies report premiums in two ways. Direct written premiums are the total amount of premiums that a P&C insurance company receives in one year. Net written premiums are direct written premium amounts plus reinsurance written premium amounts minus reinsurance ceded premium amounts.

There are more than 207 private P&C insurers actively competing in Canada to sell insurance policies on homes, cars and businesses.

In 2015, private Canadian insurers wrote $51.9 billion in direct written premiums ($47 billion in net written premiums) for insurance on consumers’ homes, cars and businesses.

Premiums

IBC Facts 2016 7

Net written premiums (NWP) in $000,000, 1992 to 2015

Auto NWPPersonal

property NWPCommercial

property NWP Liability NWP Other NWP Total NWP1992 7,763 2,642 1,866 1,319 913 14,502

1993 8,158 2,803 2,062 1,298 918 15,239

1994 8,697 3,042 2,337 1,430 975 16,482

1995 9,403 3,163 2,553 1,694 1,258 18,071

1996 9,597 3,246 2,658 1,867 1,202 18,570

1997 9,553 3,281 2,711 1,878 1,185 18,608

1998 9,686 3,383 2,469 1,823 1,198 18,559

1999 9,839 3,293 2,434 1,846 1,315 18,728

2000 10,705 3,429 2,591 1,982 1,471 20,178

2001 11,281 3,481 2,768 2,194 1,519 21,242

2002 13,150 3,971 3,909 3,145 3,333 27,507

2003 15,781 4,452 4,518 4,081 2,581 31,413

2004 16,415 5,079 4,802 4,357 2,622 33,275

2005 16,430 5,315 4,820 4,600 2,698 33,864

2006 16,590 5,621 4,985 4,826 2,943 34,964

2007 16,758 6,033 4,997 4,766 3,540 36,095

2008 17,140 6,495 5,001 4,624 3,438 36,698

2009 18,126 7,013 5,313 4,667 3,068 38,187

2010 18,977 7,598 5,568 4,726 3,416 40,285

2011 20,239 8,192 6,014 4,817 3,533 42,794

2012 20,690 8,565 6,136 4,502 3,758 43,653

2013 21,089 9,024 6,339 4,731 3,823 45,007

2014 21,295 9,791 6,621 4,781 4,143 46,632

2015 20,630 10,187 6,656 4,988 4,547 47,009

Sources: IBC, MSA, SCOR, AMF

Direct written premiums (DWP) by line, 2015

Line of businessDWP in

$000,000

DWP as % of total

businessTotal auto 21,892 42.2 Auto - private passenger 18,124 35.0Personal property 11,055 21.3Commercial property 7,510 14.5Liability 5,972 11.5Specialized 4,099 7.9Accident and sickness 1,325 2.6Total business 51,852 100.0


Net written premiums (NWP) by line, 2015

Line of businessNWP in

$000,000

NWP as % of total

businessTotal auto 20,630 43.9 Auto - private passenger 16,969 36.1Personal property 10,187 21.7Commercial property 6,656 14.2Liability 4,988 10.6Specialized 3,548 7.5Accident and sickness 999 2.1Total business 47,009 100.0


Of the $47 billion in net written premiums, 43.9% was for one line of business: automobile, including commercial vehicle insurance. (Figures do not include government-owned auto insurers in British Columbia, Saskatchewan, Manitoba and Quebec, which exclusively provide the compulsory component of auto insurance in those provinces.) 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% of the business. The smallest portion of the business is accident and sickness insurance, which a few P&C insurance companies sell. Most of this type of insurance is sold by life and health insurers.

8 IBC Facts 2016

The “Insurance Dollar” graphic shows how insurers spent each dollar of revenue averaged over seven years, from 2009 to 2015. More than half of every dollar received is paid out in claimsSources: IBC, MSA

51.1% - claims paid out to policyholders

20.7% - operating expenses including employee compensation

16.0% - taxes and levies

8.2% - profit margin

Insurance dollar

IBC Facts 2016 9

Net claims incurred (NCI) in $000,000, 1992 to 2015Auto NCI Personal property NCI Commercial property NCI Liability NCI Other NCI Total NCI

1992 6,074 1,907 1,532 1,064 578 11,154 1993 6,420 1,974 1,430 1,004 661 11,490 1994 6,892 1,955 1,493 1,159 545 12,043 1995 7,342 2,003 1,504 1,218 773 12,840 1996 7,034 2,301 1,665 1,449 761 13,210 1997 7,221 2,112 1,838 1,406 613 13,190 1998 7,185 2,523 2,089 1,275 696 13,768 1999 7,475 2,152 1,758 1,438 659 13,483 2000 8,443 2,286 1,847 1,430 784 14,790 2001 9,431 2,316 2,031 1,495 887 16,161 2002 10,844 2,352 2,195 2,085 2,019 19,494 2003 12,028 2,574 2,161 2,632 993 20,388 2004 11,081 2,921 2,033 3,263 864 20,161 2005 10,626 3,570 3,356 3,071 944 21,568 2006 10,968 3,556 2,173 2,577 1,052 20,326 2007 11,753 3,842 2,589 2,642 990 21,817 2008 12,997 4,720 3,157 2,726 1,404 25,003 2009 13,472 5,071 3,454 2,878 1,464 26,338 2010 15,205 4,566 3,276 2,766 1,475 27,288 2011 14,607 5,336 4,087 2,977 1,560 28,567 2012 14,731 5,013 3,981 2,615 1,479 27,817 2013 15,125 6,161 4,699 2,486 1,650 30,120 2014 15,835 6,045 3,955 2,526 1,970 30,330 2015 15,277 5,489 3,797 3,106 1,761 29,431


Net claims incurred (NCI) by line, 2015Line of business NCI in $000,000 NCI as % of total businessTotal auto 15,277 51.9 Auto - private passenger 12,578 42.7Personal property 5,489 18.7Commercial property 3,797 12.9Liability 3,106 10.6Specialized 1,099 3.7Accident and sickness 662 2.2Total business 29,431 100.0


Claims

In 2015, Canadian P&C insurers paid out $30.3 billion, or 61%, of insurance company revenues in claims.

A note about terminology in the chart below: Net claims incurred are the total claims cost incurred in the period less any share to be paid by reinsurers.

10 IBC Facts 2016

The main taxes and levies applied to the P&C insurance industry are:

• Retail sales tax on claims and expenses. The P&C insurance industry paid more than $1.78 billion in goods and services tax/harmonized sales tax (GST/HST) and provincial sales tax (PST/QST) applicable to P&C insurance claims. An additional $337 million in sales taxes related to general and administrative expenses was incurred as part of daily operations. Being a GST/HST exempt industry means these costs are unrecoverable through input tax credits.

• Insurance premium tax. Provinces apply this tax, which is included in premiums, at different rates on different insurance products. Some jurisdictions have combined this tax with a fire tax. The fire tax is collected by some provincial governments to be disbursed to municipalities to support fire services.

• PST/QST on premiums. This is a provincial sales tax collected from policyholders in Manitoba, Ontario and Quebec.

• Health care levy. This levy is paid to most provincial governments to support the health care system, particularly to pay the public health system costs for victims of automobile collisions. Health care levies are included in the industry’s total tax contribution because they are a mandatory payment.

Excluding income taxes and the portion of payroll taxes remitted to governments on behalf of employees, the remaining taxes and levies accounted for over $5.7 billion or 70% of the total tax contribution. The impact of these taxes on premiums varies depending on the insurance product. On a Canada-wide basis, these taxes account for 15.1% of the premium for personal property insurance, 11.2% of the premium for private passenger auto insurance (includes health care levies), 11.0% of the premium for commercial liability insurance and 9.9% of the premium for commercial property insurance.

Federal and provincial taxes and levies payable in $000,000, 2014Income taxes 1,375.6 Payroll taxes 1,406.6 Realty and business taxes 36.1 Transaction taxes

GST on claims 745.2 PST/QST on claims 1,037.8 RST on operating expenses 337.1

PST on premiums (Man., Ont., Que.) 1,400.6 Insurance premium taxes 1,580.0

Transaction subtotal 5,100.8 Total taxes 7,919.0 Health levies 304.4 Total 8,223.5

Source: IBC

Recent tax changes

On April 1, 2016, Alberta will increase its insurance premium tax rate from 3% to 4%.

Canada’s Department of Finance has not made many public announcements about the OECD’s Base Erosion and Profit Shifting (BEPS) project to reform the international tax system, but has made it clear that Canada will be adopting all of the minimum requirements in the BEPS final report. These changes could affect Canadian insurers, particularly multinational and foreign-owned companies.

Each year, the P&C insurance industry makes significant tax contributions to government tax revenues. In 2014, Canadian P&C insurers paid taxes and levies totalling over $8.2 billion to federal and provincial governments. About 83% ($6.8 billion) of the industry’s total tax contribution was incurred through the insurance supply chain and was paid regardless of the industry’s bottom line, while only 17% ($1.4 billion) was paid in income taxes.

Taxes and levies

IBC Facts 2016 11

Provincial premium, premium sales and premium fire tax rates, 2015Premium tax

rate (%)Premium sales

tax rate (%)Premium fire

tax rate (%)Alberta* 3.00 - - British Columbia (auto and property insurance) 4.40 - - British Columbia (excluding auto and property) 4.00 - - Manitoba 3.00 8.00 1.25New Brunswick 3.00 - 1.00Newfoundland and Labrador** 4.00 - - Northwest Territories 3.00 - 1.00Nova Scotia 4.00 - 1.25Nunavut 3.00 - 1.00Ontario (auto insurance) 3.00 - - Ontario (property insurance) 3.50 8.00 - Ontario (excluding property and auto) 3.00 8.00 - Prince Edward Island 3.50 - 1.00Quebec*** 3.48 9.00 - Saskatchewan (auto insurance) 5.00 - - Saskatchewan (hail insurance) 3.00 - - Saskatchewan (excluding auto and hail) 4.00 - 1.00Yukon 2.00 - 1.00

* Alberta announced that the insurance premium tax rate will increase to 4% on April 1, 2016.** Newfoundland and Labrador will increase the insurance premium tax rate to 5% and reintroduce a retail sales tax on premiums at 15% effective July 1, 2016.*** Insurance premium tax rates include a compensation tax that increased to 0.48% in December 2014.

Source: IBC

12 IBC Facts 2016

Average weekly wage compared tobenchmark industries, 2015Mining and quarrying (except oil and gas) 1,700.1 Professional, Scientific & Tech. Services 1,335.7 Insurance Carriers & Related Activities 1,245.6 Public Administration 1,226.9 Information & Cultural Industries 1,168.6 Manufacturing 1,079.0 Hospitals 1,068.2 Credit Intermediation 1,059.2 Educational Services 1,005.5 All Industries 952.1 Retail trade 550.6 Accomodation & Food Service 374.8

Source: Statistics Canada Table 281-0027

Employee compensation is the largest operating expense. In 2015, the P&C insurance industry employed 122,500 people across Canada.

Compensation levels in the industry are relatively high compared with most other sectors in the economy. The average weekly salary in 2015 was $1,246. This reflects the advanced skill mix that employees in the P&C insurance industry possess.

Employment in the insurance industry as a whole (which includes life, health and medical, and P&C) grew by 9.3% between 2008 and 2014, according to Statistics Canada.

Operating expenses for P&C insurers include facility costs, information technology, market research and employee compensation.

Operating expenses

IBC Facts 2016 13

The P&C insurance industry is highly regulated by governments and is required by law to invest its assets prudently. More than 80% of invested assets are placed in bonds.

Of its $158.5 billion in total assets, the P&C insurance industry has $114.4 billion in invested assets. This makes the Canadian P&C insurance industry a major stakeholder and investor in the national economy. P&C insurers invest mainly in domestic government and corporate bonds, and in preferred and common stocks. These investments produce a steady flow of income and balance the more variable income from the underwriting side of the business, which tends to fluctuate from year to year.

Investments in $000,000 as of December 31, 2015Bonds Shares Mortgages Real estate Term deposits Other Total 86,426 13,450 1,140 150 3,994 9,437 114,597

75.4% 11.7% 1.0% 0.1% 3.5% 8.2% 100.0%


Return on equity comes from two revenue streams – underwriting and investment earnings.

In 2015, underwriting posted gains for the 12th consecutive year. The 2014 net underwriting revenue was $1.4 billion. Before 2003, underwriting posted losses for 24 years in a row.

On investment, 2014 was a year of relatively low returns of 3.9%. Return on investment moves in lockstep with the yields for 3- and 5-year Government of Canada bonds, which have fallen for the last two decades. Investment income for 2014 was $4.4 billion.

Profit

Profit or return on equity in the P&C insurance industry is cyclical. It has fluctuated around an average of 10.5% since 1975. The 2015 industry return on equity was 10.0%.

14 IBC Facts 2016

Return on equity, return on investment and underwriting ratios, 1992 to 2015

Return on equityReturn on

investment Earned loss ratioOperating

expense ratio Combined ratio1992 8.5% 10.4% 77.7% 32.9% 110.6%1993 9.5% 10.7% 77.1% 32.8% 109.9%1994 6.8% 8.0% 75.7% 31.3% 107.0%1995 11.7% 9.1% 73.3% 30.8% 104.1%1996 13.6% 10.3% 72.7% 30.7% 103.4%1997 13.1% 10.4% 71.4% 31.2% 102.6%1998 6.8% 8.5% 74.9% 32.9% 107.8%1999 6.5% 7.3% 72.6% 33.2% 105.9%2000 6.3% 9.0% 75.9% 32.7% 108.7%2001 2.6% 7.5% 80.0% 31.0% 111.0%2002 1.7% 5.4% 76.9% 28.9% 105.8%2003 11.6% 6.2% 69.9% 28.6% 98.4%2004 18.1% 5.6% 62.7% 28.2% 91.0%2005 17.2% 5.9% 64.7% 28.7% 93.4%2006 16.9% 5.9% 59.5% 28.1% 87.5%2007 14.1% 5.5% 62.5% 28.5% 91.0%2008 6.0% 3.9% 70.3% 30.0% 100.3%2009 6.9% 4.2% 69.5% 30.0% 99.6%2010 7.6% 4.3% 69.1% 30.2% 99.4%2011 8.0% 4.2% 68.2% 30.3% 98.4%2012 10.8% 3.9% 64.7% 30.6% 95.3%2013 6.9% 3.1% 68.1% 30.8% 98.9%2014 9.9% 3.9% 66.6% 31.0% 97.6%2015 10.0% 3.3% 63.5% 31.4% 94.9%

A note about terminology:Earned loss ratio is the ratio of claims incurred to net premiums earned.Operating expense ratio is the ratio of operating expenses to net premiums earned.Combined ratio is the ratio of claims plus expenses to net premiums earned.When the combined ratio is 100% or more, it signifies an underwriting loss. When the combined ratio is less than 100%, it signifies an underwriting profit.Return on equity excludes Lloyd’s


IBC Facts 2016 15

Return on investment (ROI) compared with Government of Canada bond yield, 1989 to 2015 (%)

4

12

8

01989

P&C ROI

Yield for 3–5 yearGovernment of Canada bonds

1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2013 20152011

Return on equity (ROE), 1975 to 2015 (%)

11.2 9.9 10.6 8.3

5

10

15

20

01975 1980 1985 1990 1995 2000 2005 2010 2015

Average ROE 10.5

Excluding Lloyd’s Sources: IBC, MSA

Sources: IBC, MSA, Bank of Canada

16 IBC Facts 2016

Catastrophic losses in Canada in $000,000,000, 1983 to 2015

Loss + Loss Adjustment Expenses in 2015 dollarsEstimated Trend Line

Source: IBC, PCS Canada, CatIQ, Swiss re, Munich Re, Deloitte

1.0

2.0

3.0

01983 1985 1990 1995 2000 2005 2010 2015

In 2015, catastrophic losses plus loss adjustment expenses accounted for approximately $602 million, a welcome reduction from the previous six years in a row when insured losses were close to or more than $1 billion. The year 2013 was a record-breaker for catastrophic losses, when insurers paid out more than $3.6 billion, including $1.9 billion as a result of the floods in southern Alberta. As well, at the end of 2013, a massive winter storm hit southern Ontario and parts of Eastern Canada. At the height of power outages, more than 300,000 Greater Toronto Area residents had no electricity.

Before 2013, the record year for insured losses was 1998, the year that an ice storm occurred in Quebec and Ontario that included six days of freezing rain, month-long power outages and $2.2 billion in insured losses.

Milestone losses of the past decade include the hailstorms in Alberta during the summer of 2014 that cost insurers $575 million in insured losses. They also include the Slave Lake fire that ravaged a remote area of Alberta, causing more than $780 million in insured losses in the spring of 2011, and the Toronto rains of 2005 that generated $740 million in claims. (All figures in this section are in 2015 dollars.)

Catastrophic losses

Insured losses for a given disaster are deemed catastrophic when they total $25 million or more. Catastrophic losses for a year are the sum total of insured losses from these natural disasters. Catastrophic losses due to natural disasters have increased dramatically over the last decade.

IBC Facts 2016 17

The table below shows the steady increase in the number and cost of catastrophic losses in Canada. This is not a Canada-only phenomenon; it is part of a worldwide trend.

The table includes insured losses by event and annual totals from 1983 to 2008. From 2009 on, it sets out insured losses for the two largest events in the year and annual totals.

The figures are reported by Property Claim Services Canada (PCS Canada), which tracks insured losses arising from catastrophic events in Canada. Figures for 2014 and 2015 are also reported by Catastrophe Indices and Quantification Inc. (CatIQ). Insured losses for all events are available through subscription to PCS Canada and CatIQ.

Catastrophic losses by event in $000, 1983 to 2015

Date and place

Event type

Lossplus loss adjustmentexpenses

Lossplus loss adjustmentexpenses in 2015 dollars

1983July 9, Saskatchewan Storm 16,385 35,703 Aug. 3, Edmonton AB Storm 22,060 48,069 Total 1983 38,445 83,771

1984 April 30, Bruce County ON Wind 39,066 81,614

Total 1984 39,066 81,614

1985May 30, Leamington ON Storm 16,390 32,936 May 31, Barrie ON Tornado 83,922 168,643 Total 1985 100,312 201,579

1986May 29, Montreal QC Hail 45,473 87,757 Total 1986 45,473 87,757

1987May 29, Montreal QC Hail 24,891 46,003 July 14, Montreal QC Storm 44,678 82,573 July 31, Edmonton AB Tornado 148,377 274,227 Total 1987 217,946 402,802

1988June 7, Medicine Hat AB Tornado 50,027 88,953 July 6, Slave Lake AB Flooding 21,500 38,229 Aug.16, Calgary AB Hail 37,127 66,015 Total 1988 108,654 193,196

1989July 20, Harrow ON Flooding 13,807 23,368 Total 1989 13,807 23,368

1990July 9, Calgary AB Hail 16,279 26,288 Total 1990 16,279 26,288

1991March 27–28, Sarnia ON Tornado 25,407 38,847 July 3, Red Deer AB Storm 28,202 43,121 Aug. 27, Maskinongé QC Tornado 17,667 27,013 Sept. 7, Calgary AB Hail 342,745 524,052 Nov. 30, Ontario Wind 5,429 8,301 Total 1991 419,450 641,333

18 IBC Facts 2016

Date and place

Event type



1992July 31, Calgary AB Hail 22,078 33,275 July 31, Toronto ON Flooding 4,898 7,382 Aug. 28, Alberta Hail 5,263 7,932 Aug. 28, Elmira and Aurora ON Flooding 4,348 6,553 Sept. 1, Alberta Hail 7,421 11,185 Oct. 6–7, Avalon NL Wind 8,216 12,383 Nov. 12–13, southern Ontario Wind 36,437 54,915 Nov. 12–13, Quebec Wind 12,056 18,170 Total 1992 100,717 151,795

1993March 13–14, Quebec Storm 18,447 27,283 July 25–Aug.14, Winnipeg MB Flooding 184,837 273,369 July 29–30, Alberta Hail 8,116 12,004 July 29, Saskatchewan Flooding 5,383 7,961 July 29–30, Quebec Flooding 7,624 11,276 Total 1993 224,407 331,891

1994Jan. 16–17, southern Ontario Flooding 13,145 19,419 Jan. 28, southern Ontario Storm 6,250 9,233 May 18, southern Manitoba Storm 8,260 12,202 May 22, Saskatchewan Storm 8,666 12,802 June 18, southern Alberta Hail 8,263 12,207 Aug. 4, Salmon Arm BC Storm 10,225 15,105 Aug. 4, Aylmer QC Tornado 6,911 10,209 Aug. 27, southern Manitoba Hail 8,112 11,984 Aug. 28, southern Ontario Storm 7,219 10,664 Total 1994 77,051 113,824

1995June 6–9, Calgary AB Flooding 20,764 30,008

July 4, Edmonton AB Hail 14,698 21,242

July 10, southern Alberta Hail 26,389 38,138

July 13–15, southern Ontario Storm 53,439 77,230

July 17, Calgary AB Hail 52,304 75,590

July 30, southern Manitoba Storm 8,468 12,238

Aug. 26, Regina SK Storm 12,294 17,767

Oct. 5–6, Hamilton ON Storm 16,325 23,593

Total 1995 204,681 295,806

1996July 16, Winnipeg MB Flooding/hail 146,825 209,089

July 16–18, Calgary AB Hail 119,091 169,594

July 24–25, Calgary AB Hail 85,222 121,362

July 19–20, Saguenay QC Flooding 207,159 295,009

IBC Facts 2016 19

Date and place

Event type



July 23, Outaouais QC Wind/hail 1,571 2,237

Aug. 8, Ottawa ON Flooding 20,257 28,847

Aug. 8, Outaouais and Estrie QC Flooding 7,882 11,224

Nov. 9, Montreal and Quebec City QC Flooding 76,040 108,286

Total 1996 664,047 945,650

1997Feb. 27, Niagara Peninsula ON Wind 23,776 33,297

April 6–7, Sudbury ON Flooding 20,558 28,790

July 14–15, Chambly QC Flooding 29,865 41,825

Total 1997 74,199 103,911

1998Jan., southern Quebec Ice storm 1,384,100 1,919,245 Jan., eastern Ontario Ice storm 170,000 235,729 Jan., southern New Brunswick Ice storm 20,000 27,733 July 4–9, Calgary AB Hail 69,742 96,706 Sept. 26–27, Niagara Peninsula ON Wind 63,403 87,917 Total 1998 1,707,245 2,367,329

1999Jan., southern Ontario Snowstorm 120,021 163,560 June 5, Drummondville QC Hail 20,555 28,012 July 5–6, Quebec Wind 43,321 59,036 July 28, Atlantic provinces Flooding 15,756 21,471 Sept. 22, Atlantic provinces Flooding 15,648 21,325 Total 1999 215,301 293,403

2000May 12, southern Ontario Storm 128,121 170,022 July 7, southern Manitoba Storm 18,559 24,628 July 14, Pine Lake AB Tornado 17,916 23,775 Aug. 9, Calgary AB Storm 28,058 37,234 Oct. 30, Sydney NS Flooding 4,010 5,322 Dec. 17, Atlantic provinces Wind 19,756 26,217 Total 2000 216,420 287,200

2001Feb. 1, Atlantic provinces Snowstorm 13,746 17,794 Feb. 8, southern Ontario Storm 54,078 70,003 Feb. 8, Quebec Storm 53,843 69,699 July 13, Alberta Storm 25,513 33,026 July 28, Edmonton, AB Storm 23,902 30,940 Sept. 19, Atlantic provinces Flooding 6,362 8,235 Dec. 14, southwestern British Columbia Wind 27,035 34,996 Total 2001 204,480 264,694

20 IBC Facts 2016

Date and place

Event type



2002Jan. 31, southern Ontario Wind 34,508 43,687 March 9, Ontario Wind 110,989 140,512 June 8, southern Alberta Flooding 42,828 54,221 June 10, southern Ontario Storm 53,943 68,292 July 26, southwestern Ontario Storm 60,060 76,036 Total 2002 302,327 382,747

2003March 30–April 1, New Brunswick Flooding 4,695 5,782 March 30–April 1, Newfoundland and Labrador Flooding 711 876 March 30–April 1, Prince Edward Island Flooding 628 774 March 30–April 1, Nova Scotia Flooding 18,557 22,854 Aug. 11–12, Alberta Wind/hail 33,565 41,336 Aug. 11–12, Saskatchewan Wind/hail 29,055 35,782 Summer, British Columbia Forest fires 200,000 246,304 Sept. 28–29, Prince Edward Island Hurricane 6,665 8,208 Sept. 28–29, Nova Scotia Hurricane 132,671 163,387 Total 2003 426,548 525,302

2004July 2–11, Edmonton AB Hail 166,000 200,722 July 15, Calgary AB Hail 21,500 25,997 July 15, Peterborough ON Flooding 87,303 105,564 Sept. 9, eastern Ontario Rainstorm 57,600 69,648 Total 2004 332,403 401,932

2005June 6–8 and June 17–19, Alberta Flooding 300,000 354,953 June 20–30 and July 1–2, Manitoba Flooding 60,000 70,991 July 5 and Sept. 26, Quebec Rainstorm 57,000 67,441 Aug. 19, Ontario Wind/rainstorm 625,400 739,959 Total 2005 1,042,400 1,233,344

2006Feb. 6, British Columbia Storm 6,406 7,433 Aug. 10, Alberta Hail 13,593 15,773 Sept. 24, Greater Toronto Area ON Wind/hail 4,628 5,370 Nov.15–Dec. 15, British Columbia Storm 133,086 154,434 Total 2006 157,713 183,011

2007Jan. 5, British Columbia Storm 16,235 18,434 June 5, Alberta Storm 44,621 50,664 June 22–24, Manitoba Storm 17,607 19,991 Summer, Manitoba Storm 47,400 53,819 July 7, Alberta Forest fires 7,376 8,375 July 28–29, Alberta Hail 16,581 18,826 Aug. 1, Newfoundland and Labrador Wind 6,039 6,857 Total 2007 155,859 176,967

IBC Facts 2016 21

Date and place

Event type



2008Jan. 9, Ontario Storm 28,017 31,087

April/May, New Brunswick Flooding 8,010 8,887

June 10, several regions in Quebec Hail 125,000 138,694

July 1, Lethbridge AB Wind/hail 20,500 22,746

July 9, Swift Current, SK Hail/windstorm/lightning/water

Aug. 8, Red Deer, AB Hail/windstorm/lightning/water

Sept., Saskatchewan Hail 132,000 146,461

Dec. 21, Vancouver, BC Winter storm

Total 2008 446,460 495,371

2009Jan. 6–8, Fraser Valley, BC Flood/waterFeb. 11–13, Ontario Winter stormApril 25–27, Ontario Wind/thunderstormJuly 11–13, Hamilton and Ottawa ON, Montreal and Mirabel QC Wind/thunderstormJuly 24–28, Ontario Wind/thunderstorm 227,900 252,204 Aug. 1–3, Alberta Wind/thunderstorm 376,300 416,430 Aug. 13–15, Manitoba Wind/thunderstormAug. 20, southern Ontario Wind/thunderstormAug. 23, New Brunswick and Newfoundland and Labrador Hurricane BillAug. 29, New Brunswick, Newfoundland and Labrador, and Quebec

Tropical Storm Danny

Total 2009 1,032,782 1,142,921

2010March 13, Toronto and Hamilton ON Wind/thunderstorm May 28, Winnipeg, MB Flood/waterJune 5–6, Leamington and Windsor/Essex County ON Wind/thunderstorm 127,200 138,228 June 16–18 southern Alberta and Saskatchewan Flood/waterJune 29, various regions of Alberta and Saskatoon, SK Hail/flood/windstorm/

lightningJuly 1–3, Swift Current, Wynyard and Hudson Bay region SK Wind/thunderstorm July 12–13, Calgary and southern Alberta Wind/thunderstorm 530,000 575,948 Aug. 22, Calgary AB Hail/windstorm/lightning/

waterSept. 20–21, Newfoundland and Labrador Hurricane IgorSept. 30–Oct. 1, Ontario and Quebec Flood/windstorm/

lightning/water (remnants of Nicole)

Dec., Atlantic provinces StormTotal 2010 1,235,299 1,342,394

22 IBC Facts 2016

Date and place

Event type



2011March 5–7, Ontario and Quebec Winter stormApril 10–11, Thunder Bay ON and southern and eastern Ontario Hail/windstorm/lightning/

waterApril 27–28, Ontario and Quebec Wind/thunderstormMay 14–17, Slave Lake AB Fire 742,000 783,463 June 2, Manitoba and Saskatchewan Hail/windstorm/lightning/

waterJune 7, southern Ontario Hail/windstorm/lightning/

waterJune 17–21, Weyburn and Estavan, SK Flood/waterJune 23–24, Ontario and Quebec Flood/hail/windstorm/

lightningJuly 7, Red Deer, Bergen, Olds, Bowden and Innisfail, AB Hail/windstorm/lightning/

waterJuly 18–19, Alberta, Manitoba and Saskatchewan Wind/thunderstormAugust 15, Saskatoon, Biggar and Warman, SK Flood/hail/windstorm/

lightningAug. 21, Goderich ON Wind/thunderstormAug. 28–30, New Brunswick, Quebec and Ontario Wind/thunderstorm

(remnants of Hurricane Irene)

Nov. 27, Alberta Wind/thunderstorm 238,500 251,828 Total 2011 2,044,397 2,158,638

2012March 2–3, Ontario and Quebec Windstorm/winter storm/

waterMay 26–29, Thunder Bay ON and Montreal QC Wind/thunderstorm 259,700 270,157 June 25–27, Saskatchewan Windstorm/hail/lightning/

waterJuly 11–12, Edmonton AB Wind/thunderstorm July 22–23, Hamilton and Ottawa ON and surrounding areas Wind/thunderstorm July 26, southern Alberta (Cardston to Nanton) Wind/thunderstorm Aug. 11, southern Quebec Flood/windstorm/lightning/

waterAug. 12, region around Calgary AB Wind/thunderstorm 562,000 584,628 Aug. 14, Calgary AB Hail/windstorm/lightning/

waterOct. 29–31, Ontario and Quebec Wind/thunderstorm

(remnants of Hurricane Sandy)

Total 2012 1,460,893 1,519,713

IBC Facts 2016 23

Date and place

Event type



2013April 11–14, southwestern Ontario Wind/thunderstorm May 28–June 2, parts of Ontario and Quebec Wind/thunderstorm June 19–24, southern Alberta Wind/thunderstorm 1,827,000 1,883,536 July 2, Edmonton AB Hail/windstorm/lightning/

waterJuly 8–9, Toronto and southern Ontario Wind/thunderstorm 999,500 1,030,429 July 13, Manitoba and Saskatchewan Hail/windstorm/lightning/

waterJuly 19, central and southern Ontario and southwest Quebec Wind/thunderstormJuly 19, Regina SK Hail/lightning/waterJuly 23, southern Alberta Hail/windstorm/lightning/

waterDec. 22–26, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador

Winter storm

Total 2013 3,540,388 3,649,944

2014June 17–18, southern Ontario Wind/thunderstorm June 28–July 1, southern Manitoba and Saskatchewan Wind/thunderstorm 109,400 110,623 July 5, Quebec, New Brunswick, Nova Scotia and Prince Edward Island

Windstorm/flood/water (remnants of Arthur)

July 17, Alberta and Saskatchewan Hail/windstorm/lightning/ water

Aug. 4–5, southern Ontario Wind/thunderstorm Aug. 7–8, Calgary and southern Alberta Wind/thunderstorm 568,900 575,262 Nov. 24–25, Ontario and Quebec Wind/thunderstorm Total 2014 1,013,436 1,024,769

2015June 11–12, Alberta, Saskatchewan and Manitoba Hail/windstorm/lightning/

water

June 22–23, Ontario Flood/windstorm/ lightning/water

July 21–22, Alberta and Saskatchewan Hail/windstorm/lightning/flood/water

349,410 349,410

Aug. 4–5, Alberta Hail/windstorm/flood/water

131,000 131,000

Aug. 29, British Columbia Windstorm/waterTotal 2015 602,390 602,390

Source: 1983 to 2007: IBC, PCS Canada, Swiss Re and DeloitteSource 2008: IBC, CatIQ

Source 2009, 2011, 2012: PCS Canada, CatIQSource 2010 IBC, PCS Canada, CatIQ

Source 2013 to 2015 PCS Canada, CatIQ

24 IBC Facts 2016

The federal and provincial governments regulate the P&C insurance industry. The provincial governments regulate market conduct, and the federal Office of the Superintendent of Financial Institutions (OSFI) regulates solvency.

Market conduct – going global The International Association of Insurance Supervisors’ “Insurance Core Principles” are driving regulatory activity in Canada. For instance, they are influencing the market conduct regulation governing how insurance companies treat their customers. The increased influence of international regulatory bodies means that regulation of the P&C insurance market in Canada is becoming more consistent with regulations that are working around the globe.

IBC monitors global regulations to assess their impact on Canadian insurers. This involves ensuring that international regulations are sensitive to the domestic regulatory landscape and the particulars of the P&C insurance industry in Canada. IBC also participates in the discussions led by the Global Federation of Insurance Associations, providing input into the development of many aspects of international regulations that affect P&C insurers.

While it is impossible to pinpoint exactly how much the industry pays per year to comply with regulatory requirements, it’s estimated to be hundreds of millions of dollars.

Auto insurance, in particular, is very highly regulated. The provincial governments determine claims handling, underwriting and how complaints are managed, and administer rate approval systems. To enable the industry to respond to changing market conditions, IBC is advocating for auto insurance reform in several provinces, including Alberta, Ontario, and Newfoundland and Labrador.

Through IBC, the P&C insurance industry also engages with regulators and the federal government to ensure that new regulatory initiatives balance the needs of both consumers and insurers.

Enhancing the efficiency and cost effectiveness of insurance regulation can also bring significant benefits to consumers by reducing costs that can result in lower premiums.

A major regulatory change in 2015 was OSFI’s 2015 Minimum Capital Test Guideline for covering claims as a result of an earthquake, which took effect in January following an 18-month consultation with the industry and other stakeholders.

In recent years, standards and guidelines developed by international bodies have had a greater influence on Canada’s regulatory system. This is a result of the global financial crisis of 2008, which spurred a revamping of rules worldwide.

Particularly significant is the guidance provided by the G20, a forum for the governments and central bank governors of 20 major economies; the Financial Stability Board, which monitors and makes recommendations about the global financial system;

and the International Association of Insurance Supervisors, which is leading the development of the Global Insurance Capital Standards that will be re-released for comment in mid-2016.

To better align with international trends and the evolving expectations of regulators, IBC has revised its Code of Rights and Responsibilities, and Standards of Sound Marketplace Practice. All members are urged to adopt the new voluntary code and standards, and post them on their websites.

Regulation and regulatory issues

IBC Facts 2016 25

Canada’s P&C insurance industry by line of business

2

26 Mandatory insurance26 Optional insurance27 “No-fault” insurance28 What’s mandatory where40 Premiums and claims41 Average losses42 Major issues Home insurance44 Types of coverage45 Premiums and claims45 Major issues Business insurance47 Types of coverage48 Premiums and claims48 Major issues

26 IBC Facts 2016

Mandatory insuranceThere are three kinds of mandatory coverage:

Accident benefits (AB) coverage helps people recover from injuries sustained in a collision. It pays for medical care, rehabilitation, income replacement and other benefits to aid the recovery of collision victims, including drivers, passengers and pedestrians. In the case of a death, this coverage also provides funeral expenses and survivor benefits. This insurance is mandatory in all provinces except Newfoundland and Labrador. In some provinces, it is referred to as “Section B” benefits.

Accident benefits are paid on a no-fault basis. This means that the benefits are available to anyone injured in a vehicle collision regardless of whether he or she was “at fault” for the collision. See the next page for more detail on “no-fault” insurance.

Third-party liability (TPL) coverage protects the insured driver and/or owner of the vehicle if the motor vehicle injures or kills someone or damages someone’s property through the fault of the driver. Third-party liability coverage is required by law in all provinces, and in some provinces may include direct compensation property damage (DCPD) coverage.

DCPD covers damage to an insured vehicle and to any property inside the vehicle when another motorist is responsible for the collision. It is called direct compensation because drivers collect from their own insurer, even though someone else is at fault. DCPD is mandatory in Ontario, New Brunswick, Nova Scotia and Prince Edward Island.

Uninsured auto coverage protects an insured person if he or she is injured through the fault of a driver who does not have auto insurance or is unidentified.

Optional insuranceCollision and comprehensive insurance are optional in all provinces except Saskatchewan and Manitoba, where both are mandatory.

Collision coverage pays for the cost of repairing or replacing a vehicle following a collision with another vehicle or object, such as a tree, house, guardrail or pothole. Comprehensive coverage pays for repairs to or replacement of a vehicle for damage caused by something other than a collision; for example, fire, theft, vandalism or wind.

In the event of an automobile collision, auto insurance covers the owner of the vehicle, the driver operating the vehicle with the owner’s consent, passengers, pedestrians and property. In 2014, auto insurance, which is required by law in every Canadian province and territory, accounted for approximately half the insurance written by P&C insurers.

There are about 109 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 provide the mandatory component of auto insurance in those provinces.

Auto insurance

IBC Facts 2016 27

“No-fault” insuranceThe concept of “no-fault” insurance developed over time as a way to reduce the legal and administrative costs associated with having to prove fault in a vehicle collision.

Before “no fault,” insurers required those involved in a collision to establish which driver was at fault. The insurer of the at-fault driver would be responsible for covering the losses resulting from injuries arising from the incident to those who were not at fault. This process was lengthy and required expensive investigation and often litigation.

In a pure no-fault car insurance system, if a person is injured or his or her car is damaged in a collision, the person deals directly with his or her own insurance company, regardless of who is at fault.

Every province and territory offers some degree of no-fault insurance.

l Pure no-fault systems with no right to sue

l Mix of no-fault and tort-based systems

In most provinces and territories, the person who did not cause the collision also has the right to sue the at-fault driver for damages but, in some provinces, only if his or her injuries meet a prescribed threshold.

Every province offers some degree of no-fault insurance. Two provinces – Manitoba and Quebec – have pure no-fault systems, with no right to sue respecting bodily injury or death. Other provinces use a mix of no-fault and tort-based systems. Some of them specify accident benefits limits and the right to sue for additional compensation under certain specified situations, such as when injuries are determined to be permanent and serious.

28 IBC Facts 2016

Mandatory minimum third-party liability:

$200,000 available for any one accident; however, if a claim involving both bodily injury and property damage reaches this figure, payment for property damage will be capped at $20,000

Medical payments: Up to $150,000/person

Funeral expense benefits: $2,500

Disability income benefits: 75% of gross weekly wages to maximum $300/week; 104 weeks for temporary disability, lifetime for total disability; nothing payable for the first seven days of disability; homemaker up to $145/week, maximum 104 weeks

Death benefits: Death following a collision; death of head of household $5,000, plus $145/week for 104 weeks to first survivor, plus $1,000 and $35/week for 104 weeks to each child; death of spouse/partner of head of household $2,500; death of dependent child, according to age, maximum $1,500

Impairment benefits: N/A

Right to sue for pain and suffering? Yes

Right to sue for economic loss in excess of no-fault benefits?

Yes

Administration: Government (government and private insurers compete for optional and additional coverage)

Source:ICBC Autoplan Insurance,

http://www.icbc.com/autoplan/Documents/autoplan-insurance.pdf

Auto insurance comes under provincial jurisdiction, so the rules are slightly different in each province. The following charts compare provincial regulations and have been abbreviated for space and edited for consistency and clarity.

The information is for educational purposes only; IBC recommends consulting a qualified professional for further assistance.

A note about terminology: Some provincial acts refer to “spouse” and some to “spouse/partner,” which have different definitions. Some provinces use the term “unpaid housekeeper,” which is called “homemaker” or “non-earner benefit” in other provinces. “Head of household” is usually defined as the spouse or partner with the larger income in the previous 12 months. For the full legal terminology, see the links in the Sources section at the end of each provincial chart.

Comparison of mandatory private passenger auto insurance coverage by province Quebec nwt pei yukonalberta nun

sask newf ont nb mbbc nsas of January 1, 2016British Columbia

What’s mandatory where

IBC Facts 2016 29


$200,000 is available for any one accident; however, if a claim involving both bodily injury and property damage reaches this figure, payment for property damage will be capped at $10,000

Medical payments: Up to $50,000/person


Disability income benefits: 80% of gross weekly wages to maximum $400/week; up to 104 weeks for total disability; nothing payable for the first seven days of disability; non-earner benefit (unemployed person 18 years or older) $135/week, up to 26 weeks

Death benefits: Death of head of household $10,000, plus 20% ($2,000) for each dependent survivor after first, plus additional $15,000 for first survivor and $4,000 for each remaining survivor; death of spouse/adult interdependent partner of head of household $10,000; death of dependent relative, according to age, maximum $3,000; grief counselling up to $400 per family with respect to death of any one person


Right to sue for pain and suffering? Yes. If injury is deemed “minor” under provincial legislation, maximum award is $4,956


Yes

Administration: Private insurers

Sources: Alberta Superintendent of Insurance Bulletin 11-2014,

www.finance.alberta.ca/publications/insurance/Superintendent-of-Insurance-Bulletin-11-2014.pdf;Automobile Accident Insurance Benefits Regulations,

www.qp.alberta.ca/1266.cfm?page=1972_352.cfm&leg_type=Regs&isbncln=0779751140;Alberta Standard Automobile Policy, S.P.F. No. 1,

www.finance.alberta.ca/publications/insurance/standard_automobile_policy_2013.pdf;Alberta Superintendent of Insurance Bulletin 05-2015,

http://www.finance.alberta.ca/publications/insurance/Superintendent-of-Insurance-Bulletin-05-2015.pdf

Quebec nwt pei yukonalberta nun

sask newf ont nb mbbc ns

Albertaas of January 1, 2016

30 IBC Facts 2016



If no-fault option selected: If tort option selected:

Medical payments: Up to $6,719,606 /person Up to $26,273/person for non-catastrophic injury, up to $197,056 for catastrophic injury

Funeral expense benefits: $10,078 $6,569

Disability income benefits: 90% of net wages based on gross annual income of maximum $94,539/year; nothing payable for the first seven days of disability unless catastrophically injured

Up to two years; $396/week for total disability, $198/week for partial disability; maximum $20,592/year

Death benefits: 50% of deceased’s income benefit; minimum $69,322 to spouse; 5% of calculated death benefits to each dependent child; if no spouse, $15,404 to each surviving parent or child (21 years or older), to maximum $69,322; death of dependent child $30,809

45% of deceased’s net income; minimum $59,116 to spouse; 5% of calculated death benefits to each dependent child; if no spouse or dependant, estate receives up to $13,137

Impairment benefits: Up to $192,561 /person for non-catastrophic injury, up to $235,186 for catastrophic injury

Up to $13,137/person for non-catastrophic, up to $170,783 for catastrophic injury

Right to sue for pain and suffering? Yes Yes, subject to deductible of $5,000


Yes Yes

Administration: Government (government and private insurers compete for optional and additional coverage)

Sources:SGI Canada Personal Injury Coverage,

www.sgicanada.ca/sk/individuals/autoextension/features/personalinjury.html;Your Guide to No Fault Coverage, 2016,

https://www.sgi.sk.ca/pdf/guide_nofault_2016.pdf;Your Guide to Tort Coverage, 2016,

https://www.sgi.sk.ca/pdf/guide_tort_2016.pdf;SGI Auto Pak: Policy booklet, 2016,

http://www.sgicanada.ca/sk/pdf/booklets/2016_auto_pak.pdf



Saskatchewanas of January 1, 2016

IBC Facts 2016 31



Medical payments: No time or amount limit

Funeral expense benefits: $8,301 (maximum)

Disability income benefits: 90% of net wages based on gross annual income of maximum $93,000/year; nothing is payable for the first seven days of disability

Death benefits: Death any time after injury; benefits for partners depend on wage and age of deceased and range from $60,914 to $465,000; benefits for dependent children depend on their age and range from $28,933 to $53,300; disabled dependants receive an additional $26,649; non-dependent children or parents receive $13,565

Impairment benefits: Minimum $760/week to maximum $152,281 for non-catastrophic injury; maximum $240,454 for catastrophic injury

Right to sue for pain and suffering? No


Yes

Administration: Government

Sources:Guide to Autopac,

https://www.mpi.mb.ca/en/PDFs/PolicyGuide2016.pdf; Personal Injury Protection Plan (PIPP) Guide,

www.mpi.mb.ca/en/Reg-and-Ins/Insurance/Basic-Autopac/PIPP/Pages/pipp_complete_guide.aspx;Services and Support Guide for Fatality Claims,

https://www.mpi.mb.ca/en/PDFs/SupportGuideFatalityClaims.pdf



Manitobaas of March 31, 2016

32 IBC Facts 2016



Medical payments: Up to $3,500 for minor injury; up to $65,000/person for non-minor and non-catastrophic injury for up to 5 years; up to $1 million for catastrophic injury

Funeral expense benefits: $6,000 (if optional indexation coverage is purchased, this amount may be higher)

Disability income benefits: Income Replacement Benefit: 70% of gross wages to maximum $400/week, minimum $185/week for 104 weeks (longer if victim is unable to pursue any suitable occupation); nothing is payable for the first seven days of disabilityNon-earner Benefit (disabled unemployed persons, students enrolled in education full time, or students who completed their education less than one year before the accident and are not employed): $185/week for 104 weeks; 4-week wait; limit two years. Not available if the insured is eligible for, and elects to receive, the income replacement or caregiver benefit

Death benefits: Death within 180 days of accident (or three years if continuously disabled prior to death); $25,000 minimum to spouse, $10,000 to each surviving dependant, $10,000 to each parent/guardian (if optional indexation coverage is purchased, these amounts may be higher)


Right to sue for pain and suffering? Yes, if injury meets severity test (called “threshold”), and subject to deductible. Lawsuit allowed only if injured person dies or sustains permanent and serious disfigurement and/or impairment of important physical, mental or psychological function. The court assesses damages and deducts $36,905 ($18,453 for a Family Law Act claim)


Yes. Income replacement award above no-fault benefit is based on net income after deductions for income tax, Canada Pension and Employment Insurance. Injured person may sue for 70% of net income loss before trial, 100% of gross after trial; also for medical, rehabilitation and related costs when injury meets severity test for pain and suffering claims


Sources:Ontario Automobile Policy,

www.fsco.gov.on.ca/en/auto/forms/Documents/OAP-1-Application-and-Endorsement-Forms/1215E.1.pdf; Statutory Accident Benefits Schedule (SABS), Insurance Act, O. Reg. 34/10,

www.e-laws.gov.on.ca/html/regs/english/elaws_regs_100034_e.htm;Financial Services Commission of Ontario: Auto Bulletins,

www.fsco.gov.on.ca/en/auto/autobulletins/Pages/default.aspx



Ontarioas of June 1, 2016

IBC Facts 2016 33

Private Insurance

Public Insurance


$50,000 is available for any one accident; liability limits relate to property damage claims within Quebec and to personal injury and property damage claims outside Quebec

Medical payments: No time or amount limit


Disability income benefits: 90% of net wages based on gross annual income of maximum $71,500/year; nothing is payable for the first seven days of disability; indexed

Death benefits: Death any time after accident; benefits depend on gross annual income multiplied by a factor between one and five, depending on age of the victim; benefits for spouse range from $68,148 to $357,500; benefits for dependent child depend on their age and range from $32,369 to $59,631; if there is no surviving spouse/dependant, parents or estate receive $54,621

Impairment benefits: Up to $238,965

Right to sue for pain and suffering? No


No

Administration: Bodily injury: governmentProperty damage: private insurers

Sources:Quebec Auto Insurance Policy Form Q.P.F. No.1, March 1, 2014,

www.lautorite.qc.ca/files/pdf/formulaires-professionnels/assureur/automobile/qpf_1.pdf;The Insurance Policy for All Quebecers: Accident Victim,

www.saaq.gouv.qc.ca/en/accident_victim/insurance_policy/index.php;Accident Victim - Compensation Table, 2016,

http://www.saaq.gouv.qc.ca/en/accident_victim/insurance_policy/compensation_table.php; Accident Victim - Table of Death Benefits, 2016,

www.saaq.gouv.qc.ca/en/accident_victim/insurance_policy/death_table.php



Quebecas of January 1, 2016

34 IBC Facts 2016



Medical payments: Up to $50,000/person; four-year time limit


Disability income benefits: Maximum $250/week; 104 weeks for partial disability, lifetime for total disability; must be disabled for at least seven days to qualify; unpaid housekeeper $100/week, maximum 52 weeks

Death benefits: Death within 180 days (or two years if continuously disabled prior to death); death of head of household $50,000, plus $1,000 to each dependent survivor after first; death of spouse/partner $25,000; death of dependant $5,000


Right to sue for pain and suffering? Yes. If injury is deemed “minor” under provincial legislation, maximum award is $7,650.56


Yes


Sources:New Brunswick Standard Owner’s Policy N.B.P.F. No.1,

http://0101.nccdn.net/1_5/1c2/1a0/1a9/StandardOwnersPolicy.pdf (Effective October 1, 2010);Injury Regulation, NB Reg 2003-20,

www.canlii.org/en/nb/laws/regu/nb-reg-2003-20/106597/nb-reg-2003-20.html;Financial and Consumer Services Commission. Notice Re: Annual Indexation PDF,

http://0101.nccdn.net/1_5/0b5/1e0/36b/January-2016-Annual-Indexation-Notice.pdf; Financial and Consumer Services Commission: Automobile Insurance,

http://fcnb.ca/automobile-insurance.html



New Brunswickas of January 1, 2016

IBC Facts 2016 35


$500,000 is available for any one accident

Medical payments: Up to $50,000/person; four-year time limit (Consumers have option to purchase additional coverage)


Disability income benefits: Maximum $250/week; 104 weeks for partial disability; lifetime for total disability; must be disabled for at least seven days to qualify; unpaid housekeeper $100/week, maximum 52 weeks

Death benefits: Death within 180 days after accident (or two years if continuously disabled prior to death); death of head of household $25,000, plus $1,000 to each dependent survivor after first; death of spouse/partner $25,000; death of dependant $5,000


Right to sue for pain and suffering? Yes. If injury is deemed “minor” under provincial legislation, maximum award is $8,385


Yes


Sources:Nova Scotia Standard Automobile Policy NSPF No.1, 2013,

www.novascotia.ca/finance/site-finance/media/finance/SPF1-64103-01_2013.pdf;Automobile Insurance Contract Mandatory Conditions Regulations,

www.novascotia.ca/just/regulations/regs/imandcon.htm; Office of the Superintendent of Insurance: Bulletins (Nova Scotia),

http://www.novascotia.ca/finance/site-finance/media/finance/insurance/Cap_Bulletin_-_Jan_2016.pdf



Nova Scotiaas of January 1, 2016

36 IBC Facts 2016





Disability income benefits: Maximum $250/week; 104 weeks for partial disability; lifetime for total disability; must be disabled for at least seven days to qualify; unpaid housekeeper $100/week, maximum 52 weeks

Death benefits: Death within 180 days after accident (or two years if continuously disabled prior to death); death of head of household $50,000, plus $1,000 to each dependent survivor after first; death of spouse of head of household $25,000; death of dependant $5,000


Right to sue for pain and suffering? Yes. If injury is deemed “minor” under provincial regulation, maximum award is $7,455


Yes


Sources:Insurance Act, RSPEI 1988, c I-4,

www.gov.pe.ca/law/statutes/pdf/i-04.pdf;Prince Edward Island Standard Automobile Policy S.P.F. No.1, for accidents occurring on or after October 1, 2014,

www.gov.pe.ca/photos/original/ELJ_SampleAuto.pdf;Prince Edward Island Standard Automobile Policy S.P.F. No.1, for accidents occurring on or after October 1, 2015,

www.gov.pe.ca/photos/original/JPS_SampleAuto.pdf;Bill 46, An Act to Amend the Insurance Act (No. 2) (Chapter 36),

www.assembly.pe.ca/bills/onebill.php?session=4&generalassembly=64&number=46;Prince Edward Island Superintendent of Insurance – Notices, www.gov.pe.ca/jps/index.php3?number=1053687&lang=E;

October 1, 2015, Automobile Insurance Reforms,www.gov.pe.ca/photos/original/JPS_InsReform.pdf



Prince Edward Islandas of January 1, 2016

IBC Facts 2016 37



Medical payments: (Optional to buy) Up to $25,000/person; four-year time limit

Funeral expense benefits: (Optional to buy) $1,000

Disability income benefits: (Optional to buy) Maximum $140/week; 104 weeks for partial disability; lifetime for total disability; must be disabled for at least seven days to qualify; unpaid housekeeper $70/week, maximum 12 weeks

Death benefits: (Optional to buy) Death within 180 days (or two years if continuously disabled prior to death); death of head of household $10,000, plus $1,000 to each dependent survivor after first; death of spouse $10,000; death of dependant $2,000


Right to sue for pain and suffering? Yes. Awards are subject to deductible of $2,500


Yes


Sources:Automobile Insurance Act, Chapter A-22, an Act Respecting Automobile Insurance,

http://assembly.nl.ca/Legislation/sr/statutes/a22.htm;Newfoundland & Labrador Standard Automobile Policy S.P.F. No.1 (not available online)



Newfoundland and Labradoras of January 1, 2016

38 IBC Facts 2016



Medical payments: Up to $10,000/person; two-year time limit


Disability income benefits: 80% gross wages to maximum $300/week; 104 weeks for temporary or total disability; nothing is payable for the first seven days of disability; unpaid housekeeper $100/week, maximum 26 weeks

Death benefits: Death any time after accident; death of head of household $10,000, plus $2,000 to each dependent survivor other than the first, and 1% of total principal sum to each dependant/survivor after first, for 104 weeks; death of spouse of head of household $10,000; death of dependent relative, according to age, maximum $3,000




Yes


Sources:Insurance Act, O.I.C. 1988/090,

www.gov.yk.ca/legislation/regs/oic1988_090.pdf;Yukon Territories Standard Automobile Policy S.P.F. No.1 (not available online)



Yukonas of January 1, 2016

IBC Facts 2016 39





Disability income benefits: 80% of gross weekly wages to maximum $140/week; 104 weeks for temporary disability; lifetime for total disability; nothing is payable for the first seven days of disability; unpaid housekeeper $100/week, maximum 12 weeks

Death benefits: Death within 180 days after accident (or two years if continuously disabled prior to death); death of head of household $10,000, plus $1,500 to single survivor or $2,500 to each survivor after first if more than one; death of spouse of head of household $10,000; death of dependant $2,000




Yes


Sources:Northwest Territories

Insurance Act, R.S.N.W.T. 1988, c.I-4, https://www.justice.gov.nt.ca/en/files/legislation/insurance/insurance.a.pdf?t1455034045286;

Northwest Territories Standard Automobile Policy S.P.F. No.1 (not available online)Nunavut

Insurance Act, R.S.N.W.T.1988, c.I-4,http://www.gov.nu.ca/sites/default/files/gnjustice2/justicedocuments/Consolidated%20Law/Current/634975585772928750-1316283194-consRSNWT1988cI-4.pdf;

Nunavut Territories Standard Automobile Policy S.P.F. No.1 (not available online)

Northwest Territories and Nunavutas of January 1, 2016





40 IBC Facts 2016

Costs of claims for private passenger auto by type of coverage in $000, 1991 to 2014 Third-party

liability (includes DCPD where

applicable) Accident benefits Collision Comprehensive Other* Total1991 1,557,223 826,630 782,701 691,504 112,617 3,970,676 1992 1,690,892 955,247 771,711 615,656 100,816 4,134,322 1993 1,891,894 1,013,499 794,386 654,682 104,268 4,458,729 1994 1,806,506 1,584,715 779,563 657,289 106,716 4,934,789 1995 1,838,017 1,462,295 742,130 667,032 146,178 4,855,652 1996 2,012,891 1,501,056 737,992 668,769 159,216 5,079,924 1997 2,368,067 1,026,325 710,880 540,848 211,225 4,857,346 1998 2,649,663 1,171,796 730,926 576,312 262,126 5,390,824 1999 3,031,026 1,365,638 824,646 537,495 279,722 6,038,526 2000 3,293,534 1,633,484 959,347 577,211 334,651 6,798,227 2001 3,467,501 1,789,874 972,123 586,260 381,821 7,197,578 2002 3,711,895 2,127,839 1,061,417 569,513 419,164 7,889,828 2003 3,523,845 1,984,773 1,005,066 540,134 417,122 7,470,940 2004 3,216,368 1,727,344 929,927 485,240 403,549 6,762,429 2005 3,239,365 1,914,067 983,808 531,962 409,110 7,078,311 2006 3,475,227 2,217,100 1,059,251 531,435 413,318 7,696,332 2007 3,818,638 2,617,557 1,240,116 635,237 449,271 8,760,819 2008 3,861,390 2,917,946 1,260,909 661,903 461,557 9,163,705 2009 4,196,290 4,014,679 1,202,946 662,685 476,486 10,553,086 2010 4,331,351 3,983,952 1,154,057 747,627 462,338 10,679,325 2011 4,271,318 2,419,589 1,232,011 641,817 467,587 9,032,322 2012 4,416,293 2,391,869 1,234,649 785,580 448,166 9,276,557 2013 4,777,995 2,612,833 1,382,151 799,126 518,987 10,091,093 2014 4,949,530 2,650,275 1,486,561 847,114 545,938 10,479,418

Sources: IBC Economic Trends, with data from GISAFigures may not add up to 100% as a result of rounding

*Includes uninsured auto, underinsured motorist, all perils and specified perils

Premiums and claimsPrivate insurers wrote insurance policies totalling $21 billion in net written premiums for auto insurance in 2014.

Automobile insurance premiums, like all insurance premiums, are determined based on risk. Insurers estimate how likely it is that a customer – and a group of customers with the same set of circumstances – will make a claim, and how much those claims will likely cost in a given year. A number of factors help to determine car insurance premiums. These include where a customer lives, the type of vehicle the customer drives, how the vehicle is used, and the customer’s driving record and driver profile. (A driver profile includes the claims history of a group of customers of the same age, for example.)

For a complete breakdown of how each dollar collected by insurers is spent, see Insurance Dollar on page 8.

In 2014, Canadian private P&C insurers paid out $15.8 billion in net 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 46.1% of all net claims incurred. The vast majority of claims – 86% – were for incidents involving private passenger vehicles.

A note about terminology: The following three tables show claims costs by accident year, which is how much insurers paid out for all claims that occurred in that year (although in some instances claims may be paid in future years).

IBC Facts 2016 41

Private passenger auto insurance claims, 2014Third-party liability (includes DCPD where

applicable) Accident benefits Collision ComprehensiveNumber of insured vehicles 10,957,686 10,943,098 7,659,560 8,697,561Number of claims 375,452 106,159 255,821 284,429Total cost of claims in $000 4,961,453 2,650,854 1,490,548 849,138

Source: 2014 GISA Automobile Insurance Experience Exhibits

Commercial auto insurance claims, 2014Third-party liability (includes DCPD where

applicable) Accident benefits Collision ComprehensiveNumber of insured vehicles 1,009,787 993,944 402,237 523,292Number of claims 21,926 2,372 8,311 10,983Total cost of claims in $000 485,514 101,552 84,630 81,088


Average lossesP&C insurers track loss amounts in two ways. They calculate the average cost per claim (severity) and the average cost per insured vehicle (loss cost).

The average cost per claim is calculated by dividing the total cost of claims by the number of claims. In 2014, the national average cost per claim for private passenger auto insurance claims was $10,498,189,803÷1,087,267= $9,656.

Average cost ($) per claim by type of coverage for private passenger automobile insurance, 2010 to 2014Type of coverage 2010 2011 2012 2013 2014Third-party liability 12,446 12,381 13,003 13,220 13,215Accident benefits 35,940 24,163 24,624 25,150 24,970Collision 5,115 5,322 5,490 5,694 5,827Comprehensive 2,879 2,290 2,650 2,853 2,985


Average cost ($) per insured vehicle by type of coverage for private passenger vehicles, 2010 to 2014Type of coverage 2010 2011 2012 2013 2014Third-party liability 425.48 412.25 417.57 443.11 452.78Accident benefits 392.20 233.72 226.05 242.06 242.24Collision 164.68 173.09 169.37 185.05 194.60Comprehensive 92.65 78.36 93.91 93.66 97.63


The average cost per insured vehicle is calculated by dividing the total cost of claims by the number of insured vehicles. In 2014, the national average cost per insured private passenger vehicle was $10,498,189,803÷10,957,686= $958.07.

42 IBC Facts 2016

Major issues - affordable, effective auto insurance

In Canada, the provincial governments regulate almost all aspects of auto insurance. IBC works closely with these governments to improve the auto insurance product and system.

A decade ago, auto insurance in Nova Scotia was in crisis, with insurers paying out more money in claims than they were collecting in premiums. As well, premiums were increasing for many drivers. Working with the industry, the government introduced reforms that reduced the average cost of auto insurance in the province by almost 25%. Today, Nova Scotia’s premiums are among the lowest in the country.

The highest premiums in Atlantic Canada are in Newfoundland and Labrador, where the average written premium was $1,110 in January 2016. The average premiums in the three other Atlantic provinces were around $800. The industry is working with the Newfoundland and Labrador government to find a solution to the pressures and increased claim costs that have forced up the province’s auto insurance premiums.

Also in Alberta, IBC is approaching the provincial government – elected in May 2015 – about that province’s urgent need for auto insurance reform.

Reform is also needed in Ontario; the province’s 9.4 million drivers pay more for auto insurance than anywhere else in Canada. The Ontario government and insurance industry are working together to affect change, and in April 2015 the government announced its Building Ontario Up budget, which contains auto insurance reforms. The budget included updating the definition of catastrophic impairment and reducing the time period to claim medical, rehabilitation and attendant care benefits from 10 years to five years, except for children or individuals suffering catastrophic impairments.

To benefit consumers, the industry has been calling for an examination of the mandate of the Financial Services Commission of Ontario (FSCO), and in March, the government announced a review. IBC filed its submission, focusing on key areas of FSCO’s oversight and consumer interests.

The government assembled an expert advisory panel to carry out the review, and in November the panel released its preliminary report, which reflects industry direction. IBC asked that the regulator’s role be restructured so it can respond in a timely fashion to the rapid changes in industry structure, technology, market demands and consumer expectations, and the report echoes this recommendation.

The proposed governance structure also appears to be largely compatible with IBC’s proposal. The panel recommends that the new regulator support a model of operational independence from government while retaining ultimate accountability to the legislature.

In other provinces – namely, British Columbia, Saskatchewan and Manitoba – the industry continues to advocate for private rather than public auto insurance. With such government-run insurance companies, there is limited choice for consumers; for example, the deductibles are fixed and there are no multi-vehicle discounts. And with a captive audience, public insurance companies have no incentive to develop new services.

In comparison, private insurers have created novel products, such as first-accident forgiveness, replacement cost coverage and roadside assistance. And while taxpayers subsidize the premiums in every province with public auto insurance, private insurance adds to communities by paying taxes and investing in the private sector through corporate shares, bonds and real estate.

In a world of rapidly changing technology that includes transportation network services (of which UberX is the most well known), private insurers are offering insurance solutions to meet evolving consumer needs. The insurance industry is also exploring the implications of autonomous vehicles and the best way to ensure consumers are well protected.

Major issues - crime, including fraudAuto insurance crime increases insurers’ claim costs, and this drives up premiums for consumers.

IBC has several initiatives to help deter insurance fraud, including a webpage and toll-free phone line that allow consumers to anonymously report fraud. IBC works with the non-profit organization CANATICS, which analyzes pooled auto insurance data to identify potential fraud. And IBC’s award-winning Provincial Auto Theft Network brings together law enforcement agencies and the insurance industry to reduce auto theft and auto insurance fraud.

A major milestone in the fight against fraud was the 2015 conviction of a Peel Regional Police constable who was involved in a staged collision ring based in Brampton, Ont. The constable was paid to provide accident reports that made the ring’s staged accidents look legitimate. In total, the ring had defrauded insurance companies of more than $900,000.

IBC Facts 2016 43

Major issues - auto theft In 2015, IBC helped recover $23.6 million in stolen automobiles, an increase from the $18.8 million in 2014.

Since auto theft defies jurisdictional, political, geographical and administrative boundaries, IBC fights auto theft with multiple partners. One partner is the Canada Border Services Agency, and in 2015 IBC and the agency seized more than $11 million in stolen cars at the Montreal and Halifax ports. Together they determined that organized crime was taking a different approach to avoiding detection when exporting stolen vehicles: The thieves were dismantling the cars and trucks and shipping parts rather than whole vehicles.

To help consumers identify if their auto is a potential target, IBC publishes an annual list of the Top 10 most frequently stolen vehicles..

The 10 most frequently stolen vehicles in Canada, 2015FORD F350 SD 4WD PU 2005

FORD F350 SD 4WD PU 2006


CADILLAC ESCALADE 4DR 4WD SUV 2006







Major issues - road safetyIBC has long advocated for safer roads, and today’s number one road safety issue is driver distraction. Texting while driving is of particular concern because drivers who text are 23 times more likely to be involved in a crash or near-crash event compared to drivers who are not texting. In February 2015, IBC launched its “Drive Now. Text Later. Live Longer.” campaign, and used social media to spark conversations about distracted driving across the country.

The SafetyMobile, an acclaimed driving simulator that IBC takes across Ontario every summer, allows consumers to experience how their reaction time slows down when using a cellphone. It also takes drivers through four staged-collision scenarios, teaching them how to detect, avoid and report them. The SafetyMobile inspired IBC’s new SafetyMobile App for smartphones, which raises awareness of staged collisions.

Major issues - adapting to technological innovation

IBC is exploring the industry’s information needs about the array of new auto technologies and how insurers can adapt to these innovations.

The year 2015 saw a significant increase in the uptake of telematics, also known as usage-based insurance (UBI). This technology provides valuable data that significantly change the way insurers see their business and how they calculate premiums. The data allow insurers to determine a customer’s individual driving behaviour, and offer him or her personalized coverage.

To record their driving information, most UBI consumers rely on a device that they’ve installed in their vehicles. But growing in popularity are the UBI apps for smartphones. The apps provide consumers with increased convenience and a daily, rather than weekly, driving report. But they provide insurers with a pressing question: If consumers can turn off their smartphones, thereby disabling their UBI apps, how reliable is the driving information that the apps provide?

In response to requests from IBC, the Canadian Council of Insurance Regulators has agreed to look into the vi-ability of electronic proof of insurance and a common regulatory approach to UBI. The council reconstituted its Electronic Commerce Committee specifically to do this work.

The Autorité des marchés financiers released its Notice Regarding UBI Programs and confirmed IBC’s position that existing legislation and regulations already adequately protect consumers.

Major issues - severe weather - hailClimate change and severe weather are affecting auto insurance. In particular, the increased incidence of hail has driven up premiums. Property Claims Services Canada reports that the 2014 hail and windstorm in Airdrie, Alta., and surrounding area caused more than $170 million of insured damages just to motor vehicles.

44 IBC Facts 2016

Types of coverageHome insurance generally covers a homeowner’s residential building, outbuildings, contents, additional living expenses (if an insured event damages the home so that it is uninhabitable during the repairs) and personal liability. Tenant’s insurance generally covers loss or damage to personal belongings, additional living expenses and personal liability.

There are various types of policies:

• An all-perils policy provides coverage for a home and its contents from loss or damage from all perils except those specifically excluded. A peril is a chance event that is unexpected and accidental. Some perils are excluded from comprehensive policies – for example, earthquakes. Coverage for this peril may be purchased as a policy add-on. However, there are some excluded perils, such as overland flooding, for which home insurance may not be available. But availability of coverage for some perils is changing. Following recent large floods, insurers have seen a higher demand for coverage. In 2015, at least two national insurers began offering coverage for overland flooding and a few others have announced they are considering offering such coverage.

• A broad-form policy provides coverage for a home from loss or damage from all perils except those specifically excluded, but only insures contents for perils that are specifically named in the policy.

• A standard, basic or named perils policy provides coverage for a home and its contents for perils specifically named in the policy.

• A no-frills policy provides very basic coverage for properties that do not meet an insurer’s normal underwriting standards.

Unlike auto insurance, home or personal property insurance is not mandatory by law. However, it provides coverage for an individual’s single largest investment – a home. In fact, most banks and mortgage holders require proof of insurance on property as security for the loan or mortgage.

As the second largest line of P&C policies 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 dependants (with age and other limits).

As with all insurance premiums, insurers consider a number of risk factors to determine the price an individual pays for home insurance. For example, insurers look at the neighbourhood and the frequency and types of past claims in that area; the cost to replace a home’s contents and restore a home to its previous condition; the condition and age of the roof; the type of heating, electrical and plumbing systems; and details about any additional structures on the property.

Insurers analyze these risks to estimate how likely it is that a policyholder, or a group of people with the same set of circumstances, will make a claim and how much that claim will cost.

Home insurance

IBC Facts 2016 45

Premiums and claimsIn 2015, private P&C insurers wrote $10.2 billion in net written premiums for personal property insurance and paid out $5.5 billion for net claims incurred.

Major issues - severe weatherClimate change is disrupting lives and destroying homes, and is a growing concern for the industry. Over the past 60 years, the weather has become wetter, with a 12% average increase in rainfall across the country, making water damage rather than fire damage today’s primary cause of home insurance losses. Compared to the 1950s, Canadians experience an additional 20 days of rain per year.

The industry has identified adaptation to severe weather as a priority issue, and IBC has responded by developing a Natural Catastrophe Strategy for Canada. The strategy encourages the industry and federal government to collaborate on two risks – flood and earthquake. The current gaps in private flood and earthquake insurance leave governments to pick up the tab for these natural catastrophes. A risk-sharing partnership with government is required for insurers to be able to offer affordable policies that protect the small percentage of Canadians who face the highest risk of earthquake and/or flood.

The strategy promotes all levels of government working with the industry to improve Canada’s resilience to natural catastrophes by updating flood mapping and investing in infrastructure and flood management. It promotes earthquake-proofing buildings and updating building codes. The strategy stresses that both the government and the industry need to educate citizens about the steps they can take to protect themselves from severe weather.

During and after a severe weather event, IBC works closely with government officials and reaches out to consumers with advice and invite them to call IBC’s toll-free Consumer Information Centre.

Major issues - flood coverage This year for the first time, a few Canadian insurers began offering overland flood insurance to homeowners in specific areas. But at the moment, flood insurance is likely unaffordable for the 10% of homeowners who need it the most: those living on floodplains and in other areas at high risk of flooding. In these neighbourhoods, floods are a frequent, predictable event. Since insurance is designed to protect against random, unpredictable risks, it isn’t designed for areas where flooding is a regular occurrence.

IBC is calling for a national flood program built on a coordinated, private-public response to the growing problem of flooding. Canada’s federal government is already paying for flood damage through the Disaster Financial Assistance Arrangements (DFAA) program. Since the 1970s, floods have been the DFAA’s biggest draw, accounting for 70% to 80% of its spending. In the first four years of this decade, the DFAA program spent a staggering $3.7 billion on flood related expenses.

In 2015, IBC published The Financial Management of Flood Risk, a review of flood insurance programs in the other G7 countries. It explores best practices and available models for addressing the economic impact of flood. It also draws out lessons for Canada’s approach to the financial management of flood risk and the role of insurance.

Canada is the only G7 country that doesn’t have a national flood program in place. But Canada cannot copy another country’s flood program and expect it to work in our vast nation.

IBC is a leading voice advocating for a flood mitigation strategy. Much of the losses from flood can be attributed to aging public infrastructure. Canada’s aging sewer and stormwater infrastructure simply cannot handle today’s increased precipitation. Infrastructure improvements are essential for increasing the availability of overland flood insurance coverage.

Governments made several encouraging announcements this year. In January 2015, the Public Safety Minister announced changes to the DFAA and Canada’s national Disaster Mitigation Strategy that included $200 million for flood mitigation projects. In the fall, the new federal Liberal government was elected on a platform based, in part, on investing $5.6 billion over the next four years in “green infrastructure,” including flood mitigation systems.

Also in the fall, Alberta’s government released its first budget, which included $8.6 billion for municipal infrastructure.

Canada’s lack of effective flood risk maps, an essential risk-assessment tool, is also limiting the industry’s ability to provide residential flood insurance. IBC took a proactive approach to the problem and formed a partnership with several firms to develop the most comprehensive and detailed Canadian flood risk maps to date.

The new maps rely on the best available local climatic and geospatial data, which was then used to build a new flood model tailored to the Canadian environment. The maps and model are state-of-the-art and current for every region of the country to support assessment of flood risk.

46 IBC Facts 2016

The maps are crucial for underwriting but can also help governments and other stakeholders. Governments can use this information for urban planning and zoning purposes. They can also use it to target investment in infrastructure and risk mitigation projects where they generate the highest return on investment. Provinces and municipalities can make use of these maps as they consider the flood risk to infrastructure.

IBC continues to advocate to the government, urging it to help create a robust culture of flood risk management in Canada. At the same time, we’re preparing imaginative solutions to help communities manage excess water.

In 2009, IBC began developing the municipal risk assessment tool (MRAT) to help communities identify at-risk sewer and stormwater infrastructure, allowing them to prioritize their infrastructure investments. IBC continues to receive positive feedback from the three pilot municipalities that employed the semi-automated statistical tool. Now IBC is taking steps to have MRAT fully automated, operationalized and distributed across Canada.

To move ahead, IBC went back in time to study how old-fashioned rain barrels can help communities address modern-day climate change. In September, IBC released the results of its study in Stratford, P.E.I., where extreme weather events have flooded roads and basements. For the study, IBC distributed close to 1,000 rain barrels to families, who installed the barrels under their homes’ roof downspouts to capture water during rainstorms. After a year, the barrels had the potential to reduce the flow rate to the treatment plant by as much as 4.5%, enough to prevent the stormwater system from overflowing. IBC has since launched a similar initiative in Cornwall, P.E.I.

Major issues - earthquakesMany consumers in need of earthquake insurance do not buy it, or falsely believe that quake damage will be covered by their basic home insurance policy, or that the government will pay to rebuild their homes. Over the last decade, some insurance companies have stopped providing earthquake insurance or have placed limits on coverage because of higher capital requirements from regulators and improved risk assessment. For example, in British Columbia, where it has been established that there’s a 30% chance of a destructive earthquake within the next 50 years, consumers face deductibles as high as 15% of the value of their home.

IBC continues to take a leadership approach in furthering the dialogue on Canada’s earthquake risk. In British Columbia, IBC took the “Quake Cottage,” an earthquake simulator, to high-risk communities to encourage the residents to prepare for a potential quake. Also, IBC continues to help sponsor the annual Great British Columbia ShakeOut. Launched in 2011 with 470,000 participants, the ShakeOut event this year saw a record 785,000 British Columbians go through the earthquake drill. In addition, IBC petitions the government for help in educating consumers to create a culture of earthquake preparedness.

This advocacy work has produced promising results. In March, the B.C. government released its Earthquake Preparedness Consultation Report, which recommends that the provincial and federal governments engage with the insurance industry and other stakeholders to develop a strategy on disaster resilience and increase public awareness of the need to prepare.

IBC is continuing the national dialogue on earthquake preparedness that it initiated at its Vancouver symposium in 2014. There is an active seismic region in Quebec, and in November 2015 IBC hosted a symposium on earthquake preparedness in Montreal. It focused on the physical and economic impact of a major quake in the province, and stressed the need to prepare by developing emergency plans and ensuring that buildings meet seismic requirements. IBC stressed its consumer education mandate. In Quebec, the population is generally not well informed about earthquake risk. An IBC survey found that 25% of policyholders in Quebec believed they were covered for an earthquake, when in fact only 3% actually were.

IBC Facts 2016 47

Operating a business comes with an element of risk and unpredictability. Businesses, including non-profit organizations such as charities, buy insurance as part of an effective risk management plan. In larger enterprises, risk managers evaluate any perils to the business, implement programs to reduce and manage those dangers, and buy insurance to backstop remaining exposures.

Smaller businesses without the benefit of risk managers depend more on the advice of insurance representatives to identify risks and help them choose the appropriate insurance to guard against potential losses.

Much like any other business, home-based businesses require coverage for possible business-related losses. For example, a home-based business owner may require commercial liability coverage since business risks may not be covered by the liability section of a home insurance policy.

Types of coverageThere are various types of business insurance policies:

• Commercial general liability covers a business and its employees for actions against them that result in bodily injury, property damage, personal injury, advertising injury, tenant’s legal liability, and other types of loss or damage to third parties.

• Commercial property insurance is designed to protect the physical assets of a business against loss or damage from a broad range of causes. Physical assets include: - Equipment - Inventory and supplies - Office furniture and fixtures - Computers and electronics - Personal property of employees while on-site - Customer property at your business site - Lighting systems - Windows - Outdoor signs

• Directors’ and officers’ insurance covers directors and officers of organizations for actual or alleged errors, errors or omissions, breach of duty, misleading statements and neglect in carrying out their responsibilities for the organization.

• Errors and omissions or professional liability insurance covers individuals and organizations who give professional advice (for example, consultants and financial planners). It protects them if clients claim damages as a result of inaccurate advice, misrepresentation, negligence, or violation of good faith and fair dealing.

• Business interruption insurance can cover against lost earnings during the period of a shutdown due to an event such as a fire or riot. It can cover the time the business needs to resume profitability. Some business owners buy additional insurance to cover extra operating expenses – for example, a new telephone system, extra advertising costs, rentals and moving costs – if the business must carry on at another location or outsource work during the shutdown.

Business insurance

48 IBC Facts 2016

Premiums and claimsIn 2015, private P&C insurers wrote $6.7 billion in net written premiums for commercial property insurance and paid out $3.8 billion in net claims incurred.

Also in 2015, private P&C insurers wrote $5.0 billion in net written premiums for commercial liability insurance and paid out $3.1 billion in net claims incurred.

Major issues - cyber liability While insurance for cyber liability risk is relatively new, it’s developing quickly in response to the need of businesses that engage in e-commerce and/or maintain electronic records containing customers’ personal information. Recent changes to Canadian privacy laws have increased the potential costs associated with a security or privacy breach. Over the past few years, hackers have exposed millions of people’s private information, costing millions of dollars to the companies involved.

Cyber liability coverage addresses the risks associated with e-business, in particular the risks associated with responding to a security or privacy breach that may impair internal business operations as well as cause losses for the owners of compromised personal information. In addition, cyber liability coverage may address risks associated with copyright infringement and losses resulting from computer viruses being introduced into business computer systems or networks. There is no standard cyber liability policy, and the scope, terms and conditions of each policy may vary from company to company.

Major issues - cargo theft Stealing trucks and transport trailers and then offloading the cargo to sell for a quick profit is big business in Canada. Each year, cargo theft costs the Canadian economy about $5 billion.

IBC leads a cargo theft reporting and recovery program with the Canadian Trucking Alliance. Launched in Ontario and Quebec in 2014, it brings together the insurance industry, the trucking community, law enforcement and other stakeholders to assist in the recovery of stolen goods and to raise awareness of the costs associated with this crime. Since its launch, the initiative has received more than 800 reports of cargo-related thefts, resulting in over $12 million in recoveries of stolen goods since March 2014.

In 2015, the program became national when it was launched in Atlantic and Western Canada with the cooperation of law enforcement and the provincial trucking associations.

In December 2015, IBC launched its database electronically to allow law enforcement from across Canada to access the stolen goods registry 24/7.

Major issues - preparing for natural catastrophes and climate change

IBC encourages businesses to have business-continuity and disaster-recovery plans. It also promotes minimizing risks by installing fire alarms, identifying cyber risks and having a backup power source.

Large natural disasters have a profoundly negative impact on economic conditions. Typically, a disaster lowers economic growth by around one percentage point and GDP by about 2%.

IBC Facts 2016 49

3

Insurance organizations

50 IBC members55 IBC offices56 IBC services57 Superintendents of insurance59 Insurance-related organizations

50 IBC Facts 2016

IBC members IBC services

A Alberta Motor Association Insurance Company A B * Algoma Mutual Insurance Company B * Allianz Global Risks (US) Insurance Company A * Allstate Canada Group of Companies (ACG)

Allstate Insurance Company of Canada A B * Pafco Insurance Company A B * Pembridge Insurance Company A B *

L'Alpha, compagnie d'assurance inc. B * The American Road Insurance Company B Arch Insurance Canada Ltd. A * Atlantic Insurance Company Limited A B

IBC member companies – private insurers and reinsurers – can subscribe to the following three IBC services:

IBC members and the IBC services to which they subscribe, as of March 15, 2016

AIssues ManagementThis includes policy development, communications and legal services, and services provided by regional offices.

BInvestigative ServicesThis includes crime ring investigations, auto theft and loss recovery services, information exchange, and communications and legal services, as they pertain to Investigative Services.

*Vehicle Information SuiteThis includes access to web-based business applications, the Canadian Loss Experience Automobile Rating (CLEAR) system, VINlink products, the publication “How Cars Measure Up” and other information related to automobile insurance in Canada.

IBC members

IBC Facts 2016 51


Atradius Credit Insurance N.V. A Aviva Canada Inc.

Aviva Insurance Company of Canada A B * Elite Insurance Company A B * Pilot Insurance Company A B * S & Y Insurance Company A B * Scottish & York Insurance Co. Limited A B * Traders General Insurance Company A B *

AXIS Reinsurance Company (Canadian Branch) A

B BCAA Insurance Corporation A B The Boiler Inspection and Insurance Company of Canada A B Brant Mutual Insurance Company B *

C CAA Insurance Company (Ontario) A B * Caisse Centrale de Réassurance A La Capitale Financial Group

La Capitale assurances générales inc. A B * Unica Insurance Incorporated A B * L'Unique assurances générales inc. A B *

Chubb Group of Insurance Companies Chubb Insurance Company of Canada A B * Federal Insurance Company of Canada A B * Mitsui Sumitomo Insurance Company Limited A B *

Continental Casualty Company A B * The Co-operators Group Limited

Co-operators General Insurance Company B * COSECO Insurance Company B * CUMIS General Insurance Company B * The Sovereign General Insurance Company B *

CorePointe Insurance Company B

D Desjardins General Insurance Group Inc.

Certas Direct Insurance Company A B * Certas Home and Auto Insurance Company A B * Desjardins Assurances générales inc. A B * State Farm Fire & Casualty Company A B State Farm Mutual Automobile Insurance Company A B *The Personal Insurance Company A B *

E Ecclesiastical Insurance Office PLC A B Echelon Insurance A *

52 IBC Facts 2016


Economical Economical Mutual Insurance Company A B * Federation Insurance Company of Canada A B * The Missisquoi Insurance Company A B * Perth Insurance Company A B * Waterloo Insurance Company A B *

Electric Insurance Company A Euler Hermes American Credit Indemnity Company A Everest Insurance Company of Canada A Everest Reinsurance Company A

F Fundy Mutual Fire Insurance Company B

G General Reinsurance Corporation A Gore Mutual Insurance Company A B * Le Groupe Estrie Richelieu, compagnie d'assurance A * The Guarantee Company of North America A B *

H Hartford Fire Insurance Company A B *Heartland Farm Mutual Inc. A B * HDI-Gerling Industrial Insurance Company A Howick Mutual Insurance Company B *

I Industrielle Alliance, Assurance auto et habitation inc. A B * Intact Financial Corporation

Belair Insurance Company Inc. A B * Canadian Direct Insurance Incorporated B * Intact Insurance Company A B * JEVCO Insurance Company A B * Metro General Insurance Corporation Ltd. A *The Nordic Insurance Company of Canada A B * Novex Insurance Company A B * Trafalgar Insurance Company of Canada A B *

International Insurance Company of Hannover PLC A Ironshore Insurance Ltd. (Canada Branch) A

L Lawyers' Professional Indemnity Company A

IBC Facts 2016 53


Liberty Mutual Insurance Company A B *

M Motors Insurance Corporation B * Munich Re Group

Munich Reinsurance Company of Canada A Temple Insurance Company A

Munich Reinsurance America, Inc. A B The Mutual Fire Insurance Company of British Columbia A

NNational Bank Insurance (InnovAssur, Assurances générales inc.) A B * Northbridge Financial Corporation

Federated Insurance Company of Canada A B * Northbridge Commercial Insurance Corporation A B * Northbridge General Insurance Corporation A B * Northbridge Personal Insurance Corporation A B * Tokio Marine & Nichido Fire Insurance Co., Ltd. A B * Zenith Insurance Company A B *

North Kent Mutual Fire Insurance B *

O Odyssey America Reinsurance Corporation (Canadian Branch) A Old Republic Insurance Company of Canada A B Omega General Insurance Company A

P Partner Reinsurance Company of the U.S. A B Peace Hills General Insurance Company A B * Portage la Prairie Mutual Insurance Company B * Protective Insurance Company A

R RBC General Insurance Company A B * RSA

Ascentus Insurance Ltd. A B * Canadian Northern Shield Insurance Company A B * GCAN Insurance Company A B * Quebec Assurance Company A B *Royal & SunAlliance Insurance Company of Canada A B * Unifund Assurance Company A B *L'Union Canadienne, compagnie d'assurances A B * Western Assurance Company A B *

54 IBC Facts 2016


S SCOR Canada Reinsurance Company A * Sentry Insurance, A Mutual Company A Sirius America Insurance Company A SSQ, Société d'assurances générales inc. A B * Starr Insurance and Reinsurance Limited A Swiss Re

Swiss Reinsurance Company Canada A B Westport Insurance Corporation A B

T TD Insurance

Primmum Insurance Company A B * Security National Insurance Company A B * TD General Insurance Company A B * TD Home and Auto Insurance Company A B *

Toa Reinsurance Company of America (Canada Branch) A Travelers Canada

Travelers Insurance Company of Canada A *Trillium Mutual Insurance B * Trisura Guarantee Insurance Company A Triton Insurance Company A

W The Wawanesa Mutual Insurance Company A B * Wynward Insurance Group B

X XL Insurance Company SE A B *

IBC Facts 2016 55

Head office

Don ForgeronPresident and CEO777 Bay Street, Suite 2400P.O. Box 121Toronto, Ontario M5G 2C8

Tel: 416-362-2031Fax: 416-361-5952

Regional offices

Ottawa Craig Stewart Vice-President, Federal Affairs8 York Street, Suite 200Ottawa, Ontario K1N 5S6

Tel: 613-236-5043Fax: 613-236-5208

Western and PacificWilliam AdamsVice-President, Western and Pacific10104-103 Avenue, Suite 2603Edmonton, Alberta T5J 0H8

Tel: 780-423-2212Fax: 780-423-4796

510 Burrard Street, Suite 901Vancouver, British Columbia V6C 3A8

Tel: 604-684-3635Fax: 604-684-6235

OntarioKim DonaldsonVice-President, Ontario777 Bay Street, Suite 2400P.O. Box 121Toronto, Ontario M5G 2C8

Tel: 416-362-2031Fax: 416-644-4961

QuébecJohanne LamanqueVice-President, Quebec800, rue du Square-Victoria, bureau 2410C.P. 336, succ. Tour de la Bourse Montréal, Québec H4Z 0A2

Tel: 514-288-1563Fax: 514-288-0753

AtlanticAmanda DeanVice-President, Atlantic1969 Upper Water Street, Suite 1706Purdy’s Wharf, Tower IIHalifax, Nova Scotia B3J 3R7

Tel: 902-429-2730Fax: 902-420-0157

IBC offices

56 IBC Facts 2016

Investigative Services

British Columbia34A-2755 Lougheed Highway, Suite 571Port Coquitlam, British Columbia V3B 5Y9

Tel: 604-944-2431Fax: 604-944-1326

Prairies370, 5222-130 Avenue S.E., Suite 400Calgary, Alberta T2Z 0G4

Tel: 403-258-3677Fax: 403-255-9054

Ontario365 Evans Avenue, Suite 501Etobicoke, Ontario M8Z 1K2

Tel: 416-252-3441Fax: 416-252-6940

Québec630, boul. René-Lévesque ouest, bureau 2440Montréal, Québec H3B 1S6

Tel: 514-933-8953Fax: 514-933-7814

Atlantic1969 Upper Water Street, Suite 1706Purdy’s Wharf, Tower IIHalifax, Nova Scotia B3J 3R7

Tel: 902-429-2730Fax: 902-422-5151

Consumer Information Centres

British Columbia, Saskatchewan and Manitoba 1-844-2ask-IBC (1-844-227-5422)

Alberta1-844-2ask-IBC (1-844-227-5422)

Ontario1-844-2ask-IBC (1-844-227-5422)

Quebec1-877-288-4321

Atlantic1-844-2ask-IBC (1-844-227-5422)

IBC services

IBC Facts 2016 57

CanadaJeremy RudinSuperintendentOffice of the Superintendent of Financial Institutions Canada255 Albert StreetOttawa, Ontario K1A 0H2Tel: 613-990-7788Fax: 613-990-5591www.osfi-bsif.gc.ca

British ColumbiaCarolyn RogersSuperintendent and Chief Executive OfficerFinancial Institutions Commission of British Columbia555 West Hastings Street, Suite 2800P.O. Box 12116 Vancouver, British Columbia V6B 4N6Tel: 604-660-3555Fax: 604-660-3365Email: [email protected]

AlbertaNilam JethaSuperintendent of InsuranceAlberta Treasury Board and FinanceFinancial Sector Regulation and Policy (FSRP)9515-107 Street, Room 402Terrace BuildingEdmonton, Alberta T5K 2C3Tel: 780-427-8322Fax: 780-420-0752www.finance.alberta.ca

SaskatchewanRoger SobotkiewiczSuperintendent of InsuranceFinancial Institutions DivisionFinancial and Consumer Affairs Authority1919 Saskatchewan Drive, Suite 601Regina, Saskatchewan S4P 4H2Tel: 306-787-6700Fax: 306-787-9006Email: [email protected]

ManitobaScott MooreDeputy Superintendent of Financial Institutions - InsuranceFinancial Institutions Regulation Branch207-400 St. Mary AvenueWinnipeg, Manitoba R3C 4K5Tel: 204-945-2542Fax: 204-948-2268Email: [email protected]://www.mbfinancialinstitutions.ca

OntarioBrian MillsChief Executive Officer and Superintendent of Financial ServicesFinancial Services Commission of OntarioNorth York City Centre5160 Yonge Street, 17th FloorP.O. Box 85Toronto, Ontario M2N 6L9Tel: 416-250-7250Fax: 416-590-7070Toll-free: 1-800-668-0128www.fsco.gov.on.ca

QuébecLouis Morisset President and Chief Executive Officer Autorité des marchés financiers 800, rue de Square Victoria, 22e étageC.P. 246, Tour de la BourseMontréal, Québec H4Z 1G3Tel: 514-395-0337Fax: 514-873-3090Toll-free: 1-877-525-0337www.lautorite.qc.ca

Place de la Cité, tour Cominar 2640, boulevard Laurier, bureau 400Québec, Québec G1V 5C1Tel: 418-525-0337Fax: 418-525-9512www.lautorite.qc.ca

Superintendents of insurance as of January 1, 2016

58 IBC Facts 2016

New BrunswickAngela MazerolleSuperintendent and Director of InsuranceFinancial and Consumer Services CommissionInsurance Division225 King Street, Suite 200Fredericton, New Brunswick E3B 1E1Tel: 506-453-8959Email: [email protected]

Nova ScotiaWilliam NguActing Superintendent of Insurance Department of Finance and Treasury BoardFinancial Institutions Division1723 Hollis Street, 4th floorP.O. Box 2271Halifax, Nova Scotia B3J 3C8Tel: 902-424-2787Fax: 902-424-1298Email: [email protected]/finance

Prince Edward IslandRobert A. BradleySuperintendent of InsuranceDepartment of Justice and Public SafetyInsurance and Real Estate DivisionShaw Building, 4th Floor, South95 Rochford StreetP.O. Box 2000Charlottetown, Prince Edward Island C1A 7N8Tel: 902-368-6478Fax: 902-368-5283Email: [email protected]

Newfoundland and LabradorJohn O’BrienDirector of Financial Services Regulation DivisionSuperintendent of Insurance, Real Estate, Mortgage Brokers, Securities and Pre-Paid FuneralsDepartment of Service NLFinancial Services Regulation Division2nd Floor West Block, Confederation BuildingPrince Philip ParkwayP.O. Box 8700St. John’s, Newfoundland and Labrador A1B 4J6Tel: 709-729-4909Fax: 709-729-3205Email: [email protected]

YukonMichael NoseworthyDirector of Professional Licensing and Regulatory AffairsMailing address: P.O. Box 2703 C5Whitehorse, Yukon Y1A 2C6

Physical address: 307 Black StreetWhitehorse, Yukon Y1A 2N1Tel: 867-393-6927Fax: 867-667-3609Email: [email protected]

Northwest TerritoriesDouglas DoakSuperintendent of InsuranceTreasury Division, Department of Finance4922-48th StreetP.O. Box 1320YK Centre, 3rd FloorYellowknife, Northwest Territories X1A 2L9Tel: 867-920-3423Fax: 867-873-0325Email: [email protected]

NunavutDan CarlsonSuperintendent of InsuranceDepartment of FinanceP.O. Box 2260Iqaluit, Nunavut X0A 0H0Tel: 867-975-6813Fax: 867-975-5845Email: [email protected]/finance

IBC Facts 2016 59

ADR Institute of Canada, Inc.234 Eglinton Avenue East, Suite 405Toronto, Ontario M4P 1K5Tel: 416-487-4733Toll-free: 1-877-475-4353Email: [email protected]

Appraisal Institute of Canada200 Catherine Street, Suite 403Ottawa, Ontario K2P 2K9Tel: 613-234-6533Email: [email protected]

Canadian Association of Direct Relationship Insurers250 Consumers Road, Suite 301Toronto, Ontario M2J 4V6Tel: 416-773-0101Email: [email protected]

Canadian Association of Financial Institutions in Insurance21 St. Clair Avenue East, Suite 802Toronto, Ontario M4T 1L9Tel: 416-494-9224Email: [email protected]

Canadian Association of Fire Investigators 310-1390 Prince of Wales DriveOttawa, Ontario K2C 3N6Tel: 613-228-1934Email: [email protected]

Canadian Association of Insurance Womenwww.caiw-acfa.com

Canadian Association of Mutual Insurance Companies311 McArthur Avenue, Suite 205Ottawa, Ontario K1L 6P1Tel: 613-789-6851www.camic.ca

Canadian Board of Marine Underwriters2233 Argentia Road, Suite 100Mississauga, Ontario L5N 2X7Tel: 905-826-4768Email: [email protected]

Canadian Boiler and Machinery Underwriters’ Associationc/o Sovereign General Insurance Company of Canada2001 avenue McGill College, bureau 1750Montréal, Québec H3A 1G1Tel: 514-798-6196www.cbmua.org

Insurance-related organizations

60 IBC Facts 2016

Canadian Council of Insurance Regulators (CCIR)CCIR Secretariat5160 Yonge StreetP.O. Box 85Toronto, Ontario M2N 6L9Tel: 416-590-7290Email: [email protected]

Canadian Fire Safety Association (CFSA)2800 14th Avenue, Suite 2010Markham, Ontario L3R 0E4Tel: 416-492-9417Email: [email protected]

Canadian Independent Adjusters’ Association (CIAA) Centennial Centre5401 Eglinton Avenue West, Suite 100Toronto, Ontario M9C 5K6Tel: 416-621-6222Toll-free: 1-877-255-5589Email: [email protected]

Canadian Institute of Actuaries360 Albert Street, Suite 1740 Ottawa, Ontario K1R 7X7Tel: 613-236-8196Email: [email protected]

Canadian Insurance Accountants Association (CIAA) c/o Base Consulting and Management Inc. 2800 14th Avenue, Suite 2010Markham, Ontario L3R 0E4Tel: 416-971-7800Email: [email protected]

Canadian Insurance Claims Managers Associationc/o Insurance Bureau of Canada777 Bay Street, Suite 2400P.O. Box 121Toronto, Ontario M5G 2C8Tel: 416-362-2031www.cicma.ca

Canadian Life and Health Insurance Association Inc.Email: [email protected] www.clhia.ca

TorontoTD South Tower79 Wellington Street West, Suite 2300Toronto, Ontario M5K 1G8Tel: 416-777-2221

Ottawa46 Elgin Street, Suite 400Ottawa, Ontario K1P 5K6Tel: 613-230-0031

Montréal1001, boulevard de Maisonneuve ouest, bureau 630Montréal, Québec H3A 3C8Tel: 514-845-9004

Centre for Study of Insurance Operations (CSIO)110 Yonge Street, Suite 500Toronto, Ontario M5C 1T4Tel: 416-360-1773Toll-free: 1-800-463-2746

1155, boulevard Robert-Bourassa, bureau 1305Montréal, Québec H3B 3A7Tel: 416-360-1773Toll-free: 1-800-463-2746

Facility Association777 Bay Street, Suite 2400P.O. Box 121Toronto, Ontario M5G 2C8Tel: 416-863-1750Toll-free: 1-800-268-9572Email: [email protected]

Fire Prevention Canada3332 McCarthy RoadP.O. Box 37009Ottawa, Ontario K1V 0W0Tel: 613-749-3844Email: [email protected]

IBC Facts 2016 61

Fire Underwriters SurveyEmail: [email protected]

Atlantic Canada238 Brownlow Avenue, Suite 300Dartmouth, Nova Scotia B3B 1Y2Tel: 1-877-634-8564

Québec255, boulevard Crémazie Est, 2e étageMontréal, Québec H2M 1M2

Tel: 1-800-263-5361

Ontario150 Commerce Valley Drive WestMarkham, Ontario L3T 7Z3Tel: 1-800-268-8080

Western Canada3999 Henning DriveBurnaby, British Columbia V5C 6P9Tel: 1-800-665-5661

General Insurance OmbudService10 Milner Business Court, Suite 701Toronto, Ontario M1B 3C6Tel: 416-299-6931Toll-free: 1-877-225-0446www.giocanada.org

General Insurance Statistical Agency5160 Yonge Street, Box 85, 16th FloorToronto ON M2N 6L9 Tel: 416 590-7526Fax: 416 590-7070Email: [email protected]

Groupement des assureurs automobiles800, rue du Square-Victoria, bureau 2410C.P. 336, succ. Tour de la BourseMontréal, Québec H4Z 0A2Tel: 514-288-4321Toll-free: 1-877-288-4321www.gaa.qc.cawww.infoinsurance.ca

Institute for Catastrophic Loss Reduction20 Richmond Street East, Suite 210Toronto, Ontario M5C 2R9Tel: 416-364-8677Email: [email protected]

Insurance Brokers Association of Canada18 King Street East, Suite 1210Toronto, Ontario M5C 1C4Tel: 416-367-1831Email: [email protected]

Insurance Bureau of Canada 777 Bay Street, Suite 2400P.O. Box 121Toronto, Ontario M5G 2C8Tel: 416-362-2031www.ibc.ca

Insurance Institute of Canada18 King Street East, 6th FloorToronto, Ontario M5C 1C4Tel: 416-362-8586Toll-free: 1-866-362-8585Email: [email protected]

Nuclear Insurance Association of Canada401 Bay Street, Suite 1600Toronto, Ontario M5H 2Y4Tel: 416-646-6232www.niac.biz

Property and Casualty Insurance Compensation Corporation 20 Richmond Street East, Suite 210Toronto, Ontario M5C 2R9Tel: 416-364-8677Email: [email protected]

Reinsurance Research Councilc/o Funnel Communications Inc.189 Queen Street East, Suite 1Toronto, Ontario M5A 1S2Tel: 416-968-0183Email: [email protected]

Risk and Insurance Management Society, Inc.66 Wellington Street WestP.O. Box 1021Toronto, Ontario M5K 1P2ontario.rims.org

62 IBC Facts 2016

Surety Association of CanadaHead Office6299 Airport Road, Suite 709Mississauga, Ontario L4V 1N3Tel: 905-677-1353Email: [email protected]

British ColumbiaTel: 778-995-6585

AlbertaTel: 403-612-4070

QuebecTel: 514-389-9595

Traffic Injury Research Foundation171 Nepean Street, Suite 200Ottawa, Ontario K2P 0B4Tel: 613-238-5235Toll-free: 1-877-238-5235Email: [email protected]

Underwriters Laboratories of CanadaCustomer service: 1-866-937-3852Email: [email protected]

Montreal area6505 Trans-Canada Highway, Suite 330St-Laurent, Quebec H4T 1S3Tel: 514-363-5941

Ottawa171 Nepean Street, Suite 400Ottawa, Ontario K2P 0B4Tel: 613-755-2729

Toronto7 Underwriters RoadToronto, Ontario M1R 3A9Tel: 416-757-3611

Vancouver area130 – 13775 Commerce ParkwayRichmond, British Columbia V6V 2V4Tel: 604-214-9555

ibc.ca@InsuranceBureau, @BAC_Quebec, @IBC_Atlantic, @IBC_Ontario, @IBC_West

416-362-2031