The Ontario Broker - Volume 23, Issue 3 - 41

INDUSTRY & MARKETS
Taking the Insurance Market's
Temperature, Province by Province
Brett Boadway, COO, IBAO
W
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Yukon
Nunavut
Northwest Territories
Total Carriers
Underwriting in Canada
hile it's true that the Canadian P&C insurance industry
is growing more concentrated, it's important to apply
the broader perspective. Despite consolidation,
the industry remains abundantly healthy, diverse
and competitive. To visualize this fact, we drew data from MarketSecurity
Analysis & Research Inc. (MSA Research)-a Canadian-owned,
independent and impartial analytical research firm focused on the
Canadian insurance industry-and assessed the market share of each
insurance company transacting business in each province.
This data reflects 2021 financial information relating to 95% of
Canadian insurers. The charts present market share based on the insurers'
direct written premiums, per province. Results presented in this article
should be treated as estimates given that only 95% of insurers report their
financials to MSA Research and because financial reporting processes
during insurer consolidation efforts take time to transition. For example,
in the data shown below, Intact Insurance and RSA Canada are treated as
two distinct insurers.
Number of Insurance Carriers Underwriting in Each Province
(Based on GWP in 2021)
Number of Insurance Carriers That Make Up the Top 80% of
Market Share (Based on GWP in 2021)
Personal Lines
Markets
Newfoundland
PEI
Nova Scotia
New Brunswick
Quebec
40
54
62
57
53
83
62
58
69
69
61
62
66
114
Commercial
Lines Markets
75
67
84
80
81
115
80
84
98
84
65
52
61
131
Newfoundland
PEI
Nova Scotia
New Brunswick
Quebec
Ontario
Manitoba
Saskatchewan
Alberta
British Columbia
Yukon
Nunavut
Northwest Territories
Personal Lines
Markets
7
8
9
10
7
15
8
2
11
15
5
6
6
Commercial
Lines Markets
12
11
17
16
15
26
19
17
18
20
12
11
11
As noted, not every province is the same and each market structure
presents differently depending on the province. Saskatchewan, for
example, is dominated by the Saskatchewan Auto Fund and SGI Canada,
collectively making up over 80% of the personal lines market. Compare
this against Ontario, which has 80% of the personal lines market being
serviced by 15 insurers. Clearly, the broker distribution strategies for
competing in Saskatchewan would be different than those strategizing in
Ontario.
Volume 23 | Issue 3
Overall, the Canadian insurance market structure is healthy and
competitive. It's positive that a high level of competition generally exists
between insurers across Canada. As basic economic principles suggest,
competition between companies translates into a greater quantity of
products and services, better quality of goods and lower prices. In the
end, this is what consumers are looking for, the best quality at the best
possible price.
41
The Ontario Broker - Volume 23, Issue 3

Table of Contents for the Digital Edition of The Ontario Broker - Volume 23, Issue 3
