Facts of the Property and Casualty Insurance Industry in Canada 2016 Is Published by Insurance Bureau of Canada (IBC)

of the Property and Casualty Insurance Industry Facts 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. President’s message

he time has come to get serious about earthquake symposiums – one in British Taddressing climate change in Canada. Columbia in 2014 and another in Quebec in And IBC is ready. 2015 – we’ve laid the groundwork for earthquake preparedness. For more than a decade, IBC has been reporting on a rise in claims as a result of increases in While IBC’s climate change efforts advance, some severe weather events related to climate of our auto insurance files remain a challenge. change. We shared these alarming figures We have made progress on the Ontario Auto with consumers and knocked on the doors of insurance file, but consumers in the province provincial and federal governments to alert are still paying too much for car insurance. Also politicians of the costs their constituents are in need of reform is auto insurance in Alberta. facing. We urged government officials to create The industry is working with both provincial a robust culture of resilience. governments on reforms to save drivers money. In addition, we are monitoring automobile While our reports garnered accolades from innovations and their effect on insurance. climate change experts, governments were focused on other priorities. There are certainly challenges ahead, but I remain optimistic. Canada’s P&C insurance industry is Then in May 2015, Albertans elected a new healthy and strong. Our industry is striving to government on a platform that included flood meet these new challenges with innovative new mitigation efforts. A few months later, Canadians products for our customers’ changing needs. elected a new government in Ottawa that These are exciting times! 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 Don Forgeron – flood and earthquake. We’re in discussions President and CEO, with the federal government on a collaborative Insurance Bureau of Canada national flood program. And by hosting two

IBC Facts 2016 1 Contents

Canada’s P&C insurance industry, all sectors Section one 4 Industry at a glance - updated to 2015 6 Premiums - updated to 2015 8 Insurance dollar - updated to 2015 3–24 9 Claims - updated to 2015 10 Taxes and levies 12 Operating expenses - updated to 2015 13 Profit -updated to 2015 16 Catastrophic losses - updated to 2015 24 Regulation and regulatory issues

Canada’s P&C insurance industry by line of business Section two Auto insurance 26 Mandatory insurance 26 Optional insurance 25–48 27 “No-fault” insurance 28 What’s mandatory where 40 Premiums and claims 41 Average losses 42 Major issues Home insurance 44 Types of coverage 45 Premiums and claims 45 Major issues Business insurance 47 Types of coverage 48 Premiums and claims 48 Major issues

Insurance organizations Section three 50 IBC members 55 IBC offices 56 IBC services 49–62 57 Superintendents of insurance 59 Insurance-related organizations

2 IBC Facts 2016 Canada’s P&C insurance industry, all sectors

4 Industry at a glance - updated to 2015 6 Premiums - updated to 2015 8 Insurance dollar - updated to 2015 9 Claims - updated to 2015 10 Taxes and levies 12 Operating expenses - updated to 2015 13 Profit -updated to 2015 16 Catastrophic losses - updated to 2015 24 Regulation and regulatory issues

1 IBC Facts 2016 3 Industry at a glance

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 Property claims as a invested assets in 2015 percentage of total claims have risen significantly over the In 2015, Canadian last decade insurers wrote $51.9 billion in direct written premiums for 30.9% insurance on consumers’ homes, cars and businesses $8.2 billion – the amount the P&C insurance 24.4% industry contributed in taxes and levies to federal and provincial governments in 2014

The P&C insurance industry employed 122,500 people across Canada in 2015 More than 207 private P&C insurers actively compete in Canada

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

IBC Facts 2016 5 Premiums

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 Top 20 private P&C insurers by direct written in the insurance business. Most businesses can calculate the premiums, 2015 actual costs of producing and selling a product before the Rank Company % selling price is determined. However, when setting premiums, 1 Intact Group 15.59 P&C insurance companies can only estimate the costs of the 2 Aviva Group 8.05 medical treatments, car repairs or house repairs they will have 3 Desjardins Group 8.02 to pay in the future. 4 TD Insurance Group 6.02 Consumers often find this confusing and are unsure about what 5 RSA Group 5.60 a premium represents. Many think of their premiums as a bank 6 Wawanesa Mutual Insurance Company 5.37 account – it is there just for them in case of a loss. But that’s not 7 Lloyd's Underwriters 5.28 how it works. 8 Co-operators Group 5.23 9 Economical Group 3.93 Insurance companies report premiums in two ways. Direct 10 Travelers Group 2.91 written premiums are the total amount of premiums that a P&C 11 Allstate Group 2.69 insurance company receives in one year. Net written premiums 12 Northbridge Group 2.51 are direct written premium amounts plus reinsurance written 13 AIG Insurance Company of Canada 2.27 premium amounts minus reinsurance ceded premium amounts. 14 Chubb Group 2.04 There are more than 207 private P&C insurers actively 15 RBC Group 1.84 competing in Canada to sell insurance policies on homes, cars 16 Zurich Insurance Company Ltd. 1.84 and businesses. 17 La Capitale Group 1.72 18 Genworth Financial Mortgage Insurance 1.58 In 2015, private Canadian insurers wrote $51.9 billion in direct 19 Guarantee Company of North America 0.89 written premiums ($47 billion in net written premiums) for 20 Green Shield Canada 0.89 insurance on consumers’ homes, cars and businesses. Sources: IBC, MSA

6 IBC Facts 2016 Of the $47 billion in net written premiums, 43.9% was for one Specialized lines of insurance, such as boiler and machinery, line of business: automobile, including commercial vehicle marine and aircraft, and surety and fidelity, make up about 7% insurance. (Figures do not include government-owned auto of the business. The smallest portion of the business is accident insurers in British Columbia, Saskatchewan, Manitoba and and sickness insurance, which a few P&C insurance companies Quebec, which exclusively provide the compulsory component sell. Most of this type of insurance is sold by life and health of auto insurance in those provinces.) Personal property, insurers. commercial property and liability made up most of the rest.

Net written premiums (NWP) in $000,000, 1992 to 2015 Personal Commercial Auto NWP property NWP property NWP Liability NWP Other NWP Total NWP 1992 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 Net written premiums (NWP) by line, 2015 DWP as NWP as DWP in % of total NWP in % of total Line of business $000,000 business Line of business $000,000 business Total auto 21,892 42.2 Total auto 20,630 43.9 Auto - private passenger 18,124 35.0 Auto - private passenger 16,969 36.1 Personal property 11,055 21.3 Personal property 10,187 21.7 Commercial property 7,510 14.5 Commercial property 6,656 14.2 Liability 5,972 11.5 Liability 4,988 10.6 Specialized 4,099 7.9 Specialized 3,548 7.5 Accident and sickness 1,325 2.6 Accident and sickness 999 2.1 Total business 51,852 100.0 Total business 47,009 100.0 Sources: IBC, MSA, SCOR, AMF Sources: IBC, MSA, SCOR, AMF

IBC Facts 2016 7 Insurance dollar

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 claims

Sources: 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

8 IBC Facts 2016 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. Net claims incurred (NCI) in $000,000, 1992 to 2015 Auto 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 Sources: IBC, MSA, SCOR, AMF Net claims incurred (NCI) by line, 2015 Line of business NCI in $000,000 NCI as % of total business Total auto 15,277 51.9 Auto - private passenger 12,578 42.7 Personal property 5,489 18.7 Commercial property 3,797 12.9 Liability 3,106 10.6 Specialized 1,099 3.7 Accident and sickness 662 2.2 Total business 29,431 100.0 Sources: IBC, MSA, SCOR, AMF

IBC Facts 2016 9 Taxes and levies

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.

The main taxes and levies applied to the P&C insurance Federal and provincial taxes and levies payable industry are: in $000,000, 2014 • Retail sales tax on claims and expenses. The P&C insurance Income taxes 1,375.6 industry paid more than $1.78 billion in goods and services Payroll taxes 1,406.6 tax/harmonized sales tax (GST/HST) and provincial sales Realty and business taxes 36.1 tax (PST/QST) applicable to P&C insurance claims. An Transaction taxes additional $337 million in sales taxes related to general GST on claims 745.2 and administrative expenses was incurred as part of daily PST/QST on claims 1,037.8 operations. Being a GST/HST exempt industry means these RST on operating expenses 337.1 costs are unrecoverable through input tax credits. PST on premiums (Man., Ont., Que.) 1,400.6 Insurance premium taxes 1,580.0 • Insurance premium tax. Provinces apply this tax, which Transaction subtotal 5,100.8 is included in premiums, at different rates on different Total taxes 7,919.0 insurance products. Some jurisdictions have combined this Health levies 304.4 tax with a fire tax. The fire tax is collected by some provincial Total 8,223.5 governments to be disbursed to municipalities to support Source: IBC fire services. Recent tax changes • PST/QST on premiums. This is a provincial sales tax collected from policyholders in Manitoba, Ontario and Quebec. On April 1, 2016, Alberta will increase its insurance premium tax rate from 3% to 4%. • Health care levy. This levy is paid to most provincial governments to support the health care system, particularly Canada’s Department of Finance has not made many public to pay the public health system costs for victims of announcements about the OECD’s Base Erosion and Profit automobile collisions. Health care levies are included in Shifting (BEPS) project to reform the international tax system, the industry’s total tax contribution because they are a but has made it clear that Canada will be adopting all of the mandatory payment. minimum requirements in the BEPS final report. These changes could affect Canadian insurers, particularly multinational and Excluding income taxes and the portion of payroll taxes remitted foreign-owned companies. 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.

10 IBC Facts 2016 Provincial premium, premium sales and premium fire tax rates, 2015 Premium tax Premium sales Premium fire rate (%) tax rate (%) 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 1.25 New Brunswick 3.00 - 1.00 Newfoundland and Labrador** 4.00 - - Northwest Territories 3.00 - 1.00 Nova Scotia 4.00 - 1.25 Nunavut 3.00 - 1.00 Ontario (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 - 1.00 Quebec*** 3.48 9.00 - Saskatchewan (auto insurance) 5.00 - - Saskatchewan (hail insurance) 3.00 - - Saskatchewan (excluding auto and hail) 4.00 - 1.00 Yukon 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

IBC Facts 2016 11 Operating expenses

Operating expenses for P&C insurers include facility Average weekly wage compared to costs, information technology, market research and benchmark industries, 2015 employee compensation. Mining and quarrying (except oil and gas) 1,700.1 Employee compensation is the largest operating expense. In Professional, Scientific & Tech. Services 1,335.7 2015, the P&C insurance industry employed 122,500 people Insurance Carriers & Related Activities 1,245.6 across Canada. Public Administration 1,226.9 Information & Cultural Industries 1,168.6 Compensation levels in the industry are relatively high Manufacturing 1,079.0 compared with most other sectors in the economy. The average Hospitals 1,068.2 weekly salary in 2015 was $1,246. This reflects the advanced skill Credit Intermediation 1,059.2 mix that employees in the P&C insurance industry possess. Educational Services 1,005.5 All Industries 952.1 Employment in the insurance industry as a whole (which Retail trade 550.6 includes life, health and medical, and P&C) grew by 9.3% Accomodation & Food Service 374.8 between 2008 and 2014, according to Statistics Canada. Source: Statistics Canada Table 281-0027

12 IBC Facts 2016 Profit

Profit or return on equity in the P&C insurance industry The P&C insurance industry is highly regulated by governments is cyclical. It has fluctuated around an average of and is required by law to invest its assets prudently. More than 10.5% since 1975. The 2015 industry return on equity 80% of invested assets are placed in bonds. was 10.0%. Of its $158.5 billion in total assets, the P&C insurance industry Return on equity comes from two revenue streams – has $114.4 billion in invested assets. This makes the Canadian underwriting and investment earnings. P&C insurance industry a major stakeholder and investor in the national economy. P&C insurers invest mainly in domestic In 2015, underwriting posted gains for the 12th consecutive government and corporate bonds, and in preferred and year. The 2014 net underwriting revenue was $1.4 billion. Before common stocks. These investments produce a steady flow 2003, underwriting posted losses for 24 years in a row. of income and balance the more variable income from the On investment, 2014 was a year of relatively low returns of 3.9%. underwriting side of the business, which tends to fluctuate Return on investment moves in lockstep with the yields for from year to year. 3- and 5-year Government of Canada bonds, which have fallen for the last two decades. Investment income for 2014 was $4.4 billion.

Investments in $000,000 as of December 31, 2015 Bonds 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% Sources: IBC, MSA, SCOR, AMF

IBC Facts 2016 13 Return on equity, return on investment and underwriting ratios, 1992 to 2015 Return on Operating Return on equity investment Earned loss ratio expense ratio Combined ratio 1992 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 Sources: IBC, MSA, SCOR, AMF

14 IBC Facts 2016 Return on equity (ROE), 1975 to 2015 (%)

11.2 9.9 10.6 8.3 20

Average ROE 10.5 10

0 1975 1980 1985 1990 1995 2000 2005 2010 2015

Excluding Lloyd’s Sources: IBC, MSA

Return on investment (ROI) compared with Government of Canada bond yield, 1989 to 2015 (%) 12

P&C ROI 8

Yield for 3–5 year Government of Canada bonds 4

0 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 20092011 2013 2015

Sources: IBC, MSA, Bank of Canada

IBC Facts 2016 15 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.

In 2015, catastrophic losses plus loss adjustment expenses Milestone losses of the past decade include the hailstorms in accounted for approximately $602 million, a welcome reduction Alberta during the summer of 2014 that cost insurers from the previous six years in a row when insured losses were $575 million in insured losses. They also include the Slave Lake close to or more than $1 billion. The year 2013 was a record- fire that ravaged a remote area of Alberta, causing more than breaker for catastrophic losses, when insurers paid out more $780 million in insured losses in the spring of 2011, and the than $3.6 billion, including $1.9 billion as a result of the floods in Toronto rains of 2005 that generated $740 million in claims. southern Alberta. As well, at the end of 2013, a massive winter (All figures in this section are in 2015 dollars.) 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.

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

3.0

2.0

1.0

0 1983 1985 1990 1995 2000 2005 2010 2015

Loss + Loss Adjustment Expenses in 2015 dollars Source: IBC, PCS Canada, CatIQ, Swiss re, Munich Re, Deloitte Estimated Trend Line

16 IBC Facts 2016 Catastrophic losses by event in $000, 1983 to 2015 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. Date Event Loss Loss and place type plus loss plus loss adjustment adjustment expenses expenses in 2015 dollars 1983 July 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 1985 May 30, Leamington ON Storm 16,390 32,936 May 31, Barrie ON Tornado 83,922 168,643 Total 1985 100,312 201,579 1986 May 29, Montreal QC Hail 45,473 87,757 Total 1986 45,473 87,757 1987 May 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 1988 June 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 1989 July 20, Harrow ON Flooding 13,807 23,368 Total 1989 13,807 23,368 1990 July 9, Calgary AB Hail 16,279 26,288 Total 1990 16,279 26,288 1991 March 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

IBC Facts 2016 17 Date Event Loss Loss and place type plus loss plus loss adjustment adjustment expenses expenses in 2015 dollars 1992 July 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 1993 March 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 1994 Jan. 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 1995 June 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 1996 July 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

18 IBC Facts 2016 Date Event Loss Loss and place type plus loss plus loss adjustment adjustment expenses expenses in 2015 dollars 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 1997 Feb. 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 1998 Jan., 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 1999 Jan., 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 2000 May 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 2001 Feb. 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

IBC Facts 2016 19 Date Event Loss Loss and place type plus loss plus loss adjustment adjustment expenses expenses in 2015 dollars 2002 Jan. 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 2003 March 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 2004 July 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 2005 June 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 2006 Feb. 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 2007 Jan. 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

20 IBC Facts 2016 Date Event Loss Loss and place type plus loss plus loss adjustment adjustment expenses expenses in 2015 dollars 2008 Jan. 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 2009 Jan. 6–8, Fraser Valley, BC Flood/water Feb. 11–13, Ontario Winter storm April 25–27, Ontario Wind/thunderstorm July 11–13, Hamilton and Ottawa ON, Montreal and Mirabel QC Wind/thunderstorm July 24–28, Ontario Wind/thunderstorm 227,900 252,204 Aug. 1–3, Alberta Wind/thunderstorm 376,300 416,430 Aug. 13–15, Manitoba Wind/thunderstorm Aug. 20, southern Ontario Wind/thunderstorm Aug. 23, New Brunswick and Newfoundland and Labrador Hurricane Bill Aug. 29, New Brunswick, Newfoundland and Labrador, Tropical Storm Danny and Quebec Total 2009 1,032,782 1,142,921 2010 March 13, Toronto and Hamilton ON Wind/thunderstorm May 28, Winnipeg, MB Flood/water June 5–6, Leamington and Windsor/Essex County ON Wind/thunderstorm 127,200 138,228 June 16–18 southern Alberta and Saskatchewan Flood/water June 29, various regions of Alberta and Saskatoon, SK Hail/flood/windstorm/ lightning July 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/ water Sept. 20–21, Newfoundland and Labrador Hurricane Igor Sept. 30–Oct. 1, Ontario and Quebec Flood/windstorm/ lightning/water (remnants of Nicole) Dec., Atlantic provinces Storm Total 2010 1,235,299 1,342,394

IBC Facts 2016 21 Date Event Loss Loss and place type plus loss plus loss adjustment adjustment expenses expenses in 2015 dollars

2011 March 5–7, Ontario and Quebec Winter storm April 10–11, Thunder Bay ON and southern and eastern Ontario Hail/windstorm/lightning/ water April 27–28, Ontario and Quebec Wind/thunderstorm May 14–17, Slave Lake AB Fire 742,000 783,463 June 2, Manitoba and Saskatchewan Hail/windstorm/lightning/ water June 7, southern Ontario Hail/windstorm/lightning/ water June 17–21, Weyburn and Estavan, SK Flood/water June 23–24, Ontario and Quebec Flood/hail/windstorm/ lightning July 7, Red Deer, Bergen, Olds, Bowden and Innisfail, AB Hail/windstorm/lightning/ water July 18–19, Alberta, Manitoba and Saskatchewan Wind/thunderstorm August 15, Saskatoon, Biggar and Warman, SK Flood/hail/windstorm/ lightning Aug. 21, Goderich ON Wind/thunderstorm Aug. 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 2012 March 2–3, Ontario and Quebec Windstorm/winter storm/ water May 26–29, Thunder Bay ON and Montreal QC Wind/thunderstorm 259,700 270,157 June 25–27, Saskatchewan Windstorm/hail/lightning/ water July 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/ water Aug. 12, region around Calgary AB Wind/thunderstorm 562,000 584,628 Aug. 14, Calgary AB Hail/windstorm/lightning/ water Oct. 29–31, Ontario and Quebec Wind/thunderstorm (remnants of Hurricane Sandy) Total 2012 1,460,893 1,519,713

22 IBC Facts 2016 Date Event Loss Loss and place type plus loss plus loss adjustment adjustment expenses expenses in 2015 dollars 2013 April 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/ water July 8–9, Toronto and southern Ontario Wind/thunderstorm 999,500 1,030,429 July 13, Manitoba and Saskatchewan Hail/windstorm/lightning/ water July 19, central and southern Ontario and southwest Quebec Wind/thunderstorm July 19, Regina SK Hail/lightning/water July 23, southern Alberta Hail/windstorm/lightning/ water Dec. 22–26, Ontario, Quebec, New Brunswick, Nova Scotia, Winter storm Prince Edward Island and Newfoundland and Labrador Total 2013 3,540,388 3,649,944 2014 June 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 Windstorm/flood/water Prince Edward Island (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 2015 June 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/ 349,410 349,410 flood/water Aug. 4–5, Alberta Hail/windstorm/flood/ 131,000 131,000 water Aug. 29, British Columbia Windstorm/water Total 2015 602,390 602,390

Source: 1983 to 2007: IBC, PCS Canada, Swiss Re and Deloitte Source 2008: IBC, CatIQ Source 2009, 2011, 2012: PCS Canada, CatIQ Source 2010 IBC, PCS Canada, CatIQ Source 2013 to 2015 PCS Canada, CatIQ

IBC Facts 2016 23 Regulation and regulatory issues

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.

While it is impossible to pinpoint exactly how much the and the International Association of Insurance Supervisors, which industry pays per year to comply with regulatory requirements, is leading the development of the Global Insurance Capital it’s estimated to be hundreds of millions of dollars. Standards that will be re-released for comment in mid-2016.

Auto insurance, in particular, is very highly regulated. To better align with international trends and the evolving The provincial governments determine claims handling, expectations of regulators, IBC has revised its Code of Rights and underwriting and how complaints are managed, and Responsibilities, and Standards of Sound Marketplace Practice. administer rate approval systems. To enable the industry to All members are urged to adopt the new voluntary code and respond to changing market conditions, IBC is advocating for standards, and post them on their websites. auto insurance reform in several provinces, including Alberta, Ontario, and Newfoundland and Labrador. Market conduct – going global Through IBC, the P&C insurance industry also engages with regulators and the federal government to ensure that new The International Association of Insurance Supervisors’ regulatory initiatives balance the needs of both consumers “Insurance Core Principles” are driving regulatory activity in and insurers. Canada. For instance, they are influencing the market conduct regulation governing how insurance companies treat their Enhancing the efficiency and cost effectiveness of insurance customers. The increased influence of international regulatory regulation can also bring significant benefits to consumers by bodies means that regulation of the P&C insurance market in reducing costs that can result in lower premiums. Canada is becoming more consistent with regulations that are A major regulatory change in 2015 was OSFI’s 2015 Minimum working around the globe. Capital Test Guideline for covering claims as a result of an IBC monitors global regulations to assess their impact on earthquake, which took effect in January following an 18-month Canadian insurers. This involves ensuring that international consultation with the industry and other stakeholders. regulations are sensitive to the domestic regulatory landscape In recent years, standards and guidelines developed by and the particulars of the P&C insurance industry in Canada. IBC international bodies have had a greater influence on Canada’s also participates in the discussions led by the Global Federation regulatory system. This is a result of the global financial crisis of of Insurance Associations, providing input into the development 2008, which spurred a revamping of rules worldwide. of many aspects of international regulations that affect P&C insurers. 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;

24 IBC Facts 2016 Canada’s P&C insurance industry by line of business

26 Mandatory insurance 26 Optional insurance 27 “No-fault” insurance 28 What’s mandatory where 40 Premiums and claims 41 Average losses 42 Major issues Home insurance 44 Types of coverage 45 Premiums and claims 45 Major issues Business insurance 47 Types of coverage 48 Premiums and claims 48 Major issues

2 IBC Facts 2016 25 Auto insurance

In the event of an automobile collision, auto insurance Third-party liability (TPL) coverage protects the insured covers the owner of the vehicle, the driver operating the driver and/or owner of the vehicle if the motor vehicle injures vehicle with the owner’s consent, passengers, pedestrians or kills someone or damages someone’s property through the and property. In 2014, auto insurance, which is required by fault of the driver. Third-party liability coverage is required by law in every Canadian province and territory, accounted for law in all provinces, and in some provinces may include direct approximately half the insurance written by P&C insurers. compensation property damage (DCPD) coverage.

There are about 109 private P&C insurance companies DCPD covers damage to an insured vehicle and to any property competing for auto insurance business in Canada. In addition inside the vehicle when another motorist is responsible for the to these private insurers, government-owned insurers in British collision. It is called direct compensation because drivers collect Columbia, Saskatchewan, Manitoba and Quebec provide the from their own insurer, even though someone else is at fault. mandatory component of auto insurance in those provinces. DCPD is mandatory in Ontario, New Brunswick, Nova Scotia and Prince Edward Island.

Mandatory insurance Uninsured auto coverage protects an insured person if he or she is injured through the fault of a driver who does not have There are three kinds of mandatory coverage: auto insurance or is unidentified. 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 Optional insurance the recovery of collision victims, including drivers, passengers and pedestrians. In the case of a death, this coverage also Collision and comprehensive insurance are optional in all provides funeral expenses and survivor benefits. This insurance provinces except Saskatchewan and Manitoba, where both are is mandatory in all provinces except Newfoundland and mandatory. Labrador. In some provinces, it is referred to as “Section B” Collision coverage pays for the cost of repairing or replacing a benefits. vehicle following a collision with another vehicle or object, such Accident benefits are paid on a no-fault basis. This means that as a tree, house, guardrail or pothole. Comprehensive coverage the benefits are available to anyone injured in a vehicle collision pays for repairs to or replacement of a vehicle for damage regardless of whether he or she was “at fault” for the collision. caused by something other than a collision; for example, fire, See the next page for more detail on “no-fault” insurance. theft, vandalism or wind.

26 IBC Facts 2016 “No-fault” insurance In most provinces and territories, the person who did not cause the collision also has the right to sue the at-fault driver for The concept of “no-fault” insurance developed over time as a damages but, in some provinces, only if his or her injuries meet way to reduce the legal and administrative costs associated a prescribed threshold. with having to prove fault in a vehicle collision. Every province offers some degree of no-fault insurance. Two Before “no fault,” insurers required those involved in a collision provinces – Manitoba and Quebec – have pure no-fault systems, to establish which driver was at fault. The insurer of the at-fault with no right to sue respecting bodily injury or death. Other driver would be responsible for covering the losses resulting provinces use a mix of no-fault and tort-based systems. Some from injuries arising from the incident to those who were of them specify accident benefits limits and the right to sue not at fault. This process was lengthy and required expensive for additional compensation under certain specified situations, investigation and often litigation. such as when injuries are determined to be permanent and In a pure no-fault car insurance system, if a person is injured or serious. 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

IBC Facts 2016 27 What’s mandatory where

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. Quebec alberta nun nwt pei yukon Comparison of mandatory private passenger auto insurance coverage by province

British Columbia as of January 1, 2016 sask bc ns newf ont nb mb

Mandatory minimum third-party $200,000 available for any one accident; however, if a claim involving both bodily injury liability: 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 Yes in excess of no-fault benefits? 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

28 IBC Facts 2016 Quebec alberta nun nwt pei yukon Alberta as of January 1, 2016

Mandatory minimum third-party $200,000 is available for any one accident; however, if a claim involving both bodily injury liability: and property damage reaches this figure, payment for propertysask damage will bebc capped ns newf ont nb mb at $10,000 Medical payments: Up to $50,000/person Funeral expense benefits: $5,000 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 Impairment benefits: N/A Right to sue for pain and suffering? Yes. If injury is deemed “minor” under provincial legislation, maximum award is $4,956 Right to sue for economic loss in Yes excess of no-fault benefits? 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

IBC Facts 2016 29 Quebec alberta nun nwt pei yukon

Saskatchewan as of January 1, 2016 sask bc ns newf ont nb mb

Mandatory minimum third-party $200,000 is available for any one accident; however, if a claim involving both bodily injury liability: and property damage reaches this figure, payment for property damage will be capped at $10,000 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 Up to two years; $396/week for total income of maximum $94,539/year; nothing disability, $198/week for partial disability; payable for the first seven days of disability maximum $20,592/year unless catastrophically injured Death benefits: 50% of deceased’s income benefit; minimum 45% of deceased’s net income; minimum $69,322 to spouse; 5% of calculated death $59,116 to spouse; 5% of calculated death benefits to each dependent child; if no benefits to each dependent child; if no spouse, $15,404 to each surviving parent spouse or dependant, estate receives up or child (21 years or older), to maximum to $13,137 $69,322; death of dependent child $30,809 Impairment benefits: Up to $192,561 /person for non-catastrophic Up to $13,137/person for non- injury, up to $235,186 for catastrophic injury catastrophic, up to $170,783 for catastrophic injury Right to sue for pain and suffering? Yes Yes, subject to deductible of $5,000 Right to sue for economic loss in Yes Yes excess of no-fault benefits? 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

30 IBC Facts 2016 Quebec alberta nun nwt pei yukon

Manitoba as of March 31, 2016 sask bc ns newf ont nb mb

Mandatory minimum third-party $200,000 is available for any one accident; however, if a claim involving both bodily injury liability: and property damage reaches this figure, payment for property damage will be capped at $20,000 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 Right to sue for economic loss in Yes excess of no-fault benefits? 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

IBC Facts 2016 31 Quebec alberta nun nwt pei yukon

Ontario as of June 1, 2016 sask bc ns newf ont nb mb

Mandatory minimum third-party $200,000 is available for any one accident; however, if a claim involving both bodily injury liability: and property damage reaches this figure, payment for property damage will be capped at $10,000 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 disability Non-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) Impairment benefits: N/A 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) Right to sue for economic loss in Yes. Income replacement award above no-fault benefit is based on net income after excess of no-fault benefits? 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 Administration: Private insurers 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

32 IBC Facts 2016 Quebec alberta nun nwt pei yukon Quebec as of January 1, 2016

Private Insurance sask bc ns newf ont nb mb

Mandatory minimum third-party $50,000 is available for any one accident; liability limits relate to property damage claims liability: within Quebec and to personal injury and property damage claims outside Quebec Public Insurance

Medical payments: No time or amount limit Funeral expense benefits: $5,107 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 Right to sue for economic loss in No excess of no-fault benefits? Administration: Bodily injury: government Property 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

IBC Facts 2016 33 Quebec alberta nun nwt pei yukon

New Brunswick as of January 1, 2016 sask bc ns newf ont nb mb

34 IBC Facts 2016 Quebec alberta nun nwt pei yukon

Nova Scotia as of January 1, 2016 sask bc ns newf ont nb mb

Mandatory minimum third-party $500,000 is available for any one accident liability: Medical payments: Up to $50,000/person; four-year time limit (Consumers have option to purchase additional coverage) Funeral expense benefits: $2,500 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 Impairment benefits: N/A Right to sue for pain and suffering? Yes. If injury is deemed “minor” under provincial legislation, maximum award is $8,385 Right to sue for economic loss in Yes excess of no-fault benefits? Administration: Private insurers 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

IBC Facts 2016 35 Quebec alberta nun nwt pei yukon Prince Edward Island as of January 1, 2016

Mandatory minimum third-party $200,000 is availablesask for any one accident;bc however,ns if a claim involvingnewf both bodilyont injury nb mb liability: and property damage reaches this figure, payment for property damage will be capped at $10,000 Medical payments: Up to $50,000/person; four-year time limit Funeral expense benefits: $2,500 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 Impairment benefits: N/A Right to sue for pain and suffering? Yes. If injury is deemed “minor” under provincial regulation, maximum award is $7,455 Right to sue for economic loss in Yes excess of no-fault benefits? Administration: Private insurers 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

36 IBC Facts 2016 Quebec alberta nun nwt pei yukon

Newfoundland and Labrador as of January 1, 2016 sask bc ns newf ont nb mb

IBC Facts 2016 37 Quebec alberta nun nwt pei yukon Yukon as of January 1, 2016

Mandatory minimum third-party $200,000sask is availablebc for any one accident;ns however,newf if a claim involvingont both bodilynb injury mb liability: and property damage reaches this figure, payment for property damage will be capped at $10,000 Medical payments: Up to $10,000/person; two-year time limit Funeral expense benefits: $2,000 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 Impairment benefits: N/A Right to sue for pain and suffering? Yes Right to sue for economic loss in Yes excess of no-fault benefits? Administration: Private insurers 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)

38 IBC Facts 2016 Northwest TerritoriesQuebec alberta Quebecnun albertanwt nunpei nwtyukon pei yukon and Nunavut as of January 1, 2016

Mandatory minimum third-party $200,000 is available for any one accident; however, if a claim involving both bodily injury liability: and property damagesask reaches this figure,bc paymentsaskns for propertybc damagenewf will bens cappedont newfnb ontmb nb mb at $10,000 Medical payments: Up to $25,000/person; four-year time limit Funeral expense benefits: $1,000 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 Impairment benefits: N/A Right to sue for pain and suffering? Yes Right to sue for economic loss in Yes excess of no-fault benefits? Administration: Private insurers 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)

IBC Facts 2016 39 Premiums and claims

Private insurers wrote insurance policies totalling $21 billion in For a complete breakdown of how each dollar collected by net written premiums for auto insurance in 2014. insurers is spent, see Insurance Dollar on page 8.

Automobile insurance premiums, like all insurance premiums, In 2014, Canadian private P&C insurers paid out $15.8 billion are determined based on risk. Insurers estimate how likely it in net claims incurred to policyholders for all types of auto is that a customer – and a group of customers with the same insurance coverage: third-party liability, accident benefits, set of circumstances – will make a claim, and how much those collision and comprehensive, and other coverages. Third-party claims will likely cost in a given year. A number of factors help liability claims payouts accounted for 46.1% of all net claims to determine car insurance premiums. These include where a incurred. The vast majority of claims – 86% – were for incidents customer lives, the type of vehicle the customer drives, how the involving private passenger vehicles. vehicle is used, and the customer’s driving record and driver A note about terminology: The following three tables show profile. (A driver profile includes the claims history of a group of claims costs by accident year, which is how much insurers paid customers of the same age, for example.) out for all claims that occurred in that year (although in some instances claims may be paid in future years).

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* Total 1991 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 GISA Figures may not add up to 100% as a result of rounding *Includes uninsured auto, underinsured motorist, all perils and specified perils

40 IBC Facts 2016 Private passenger auto insurance claims, 2014 Third-party liability (includes DCPD where applicable) Accident benefits Collision Comprehensive Number of insured vehicles 10,957,686 10,943,098 7,659,560 8,697,561 Number of claims 375,452 106,159 255,821 284,429 Total 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, 2014 Third-party liability (includes DCPD where applicable) Accident benefits Collision Comprehensive Number of insured vehicles 1,009,787 993,944 402,237 523,292 Number of claims 21,926 2,372 8,311 10,983 Total cost of claims in $000 485,514 101,552 84,630 81,088 Source: 2014 GISA Automobile Insurance Experience Exhibits

Average losses

P&C insurers track loss amounts in two ways. They calculate The average cost per insured vehicle is calculated by dividing the average cost per claim (severity) and the average cost per the total cost of claims by the number of insured vehicles. In insured vehicle (loss cost). 2014, the national average cost per insured private passenger vehicle was $10,498,189,803÷10,957,686= $958.07. 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 2014 Type of coverage 2010 2011 2012 2013 2014 Third-party liability 12,446 12,381 13,003 13,220 13,215 Accident benefits 35,940 24,163 24,624 25,150 24,970 Collision 5,115 5,322 5,490 5,694 5,827 Comprehensive 2,879 2,290 2,650 2,853 2,985 Source: 2014 GISA Automobile Insurance Experience Exhibits

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

IBC Facts 2016 41 Major issues - affordable, The proposed governance structure also appears to be largely effective auto insurance compatible with IBC’s proposal. The panel recommends that the new regulator support a model of operational independence In Canada, the provincial governments regulate almost from government while retaining ultimate accountability to the all aspects of auto insurance. IBC works closely with these legislature. governments to improve the auto insurance product and system. In other provinces – namely, British Columbia, Saskatchewan and Manitoba – the industry continues to advocate for private A decade ago, auto insurance in Nova Scotia was in crisis, with rather than public auto insurance. With such government-run insurers paying out more money in claims than they were insurance companies, there is limited choice for consumers; collecting in premiums. As well, premiums were increasing for example, the deductibles are fixed and there are no multi- for many drivers. Working with the industry, the government vehicle discounts. And with a captive audience, public insurance introduced reforms that reduced the average cost of auto companies have no incentive to develop new services. insurance in the province by almost 25%. Today, Nova Scotia’s premiums are among the lowest in the country. In comparison, private insurers have created novel products, such as first-accident forgiveness, replacement cost coverage The highest premiums in Atlantic Canada are in Newfoundland and roadside assistance. And while taxpayers subsidize the and Labrador, where the average written premium was $1,110 premiums in every province with public auto insurance, private in January 2016. The average premiums in the three other insurance adds to communities by paying taxes and investing Atlantic provinces were around $800. The industry is working in the private sector through corporate shares, bonds and real with the Newfoundland and Labrador government to find a estate. solution to the pressures and increased claim costs that have forced up the province’s auto insurance premiums. In a world of rapidly changing technology that includes transportation network services (of which UberX is the most Also in Alberta, IBC is approaching the provincial government well known), private insurers are offering insurance solutions to – elected in May 2015 – about that province’s urgent need for meet evolving consumer needs. The insurance industry is also auto insurance reform. exploring the implications of autonomous vehicles and the best Reform is also needed in Ontario; the province’s 9.4 million way to ensure consumers are well protected. 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 Major issues - crime, including fraud government announced its Building Ontario Up budget, which Auto insurance crime increases insurers’ claim costs, and this contains auto insurance reforms. The budget included updating drives up premiums for consumers. the definition of catastrophic impairment and reducing the time period to claim medical, rehabilitation and attendant IBC has several initiatives to help deter insurance fraud, care benefits from 10 years to five years, except for children or including a webpage and toll-free phone line that allow individuals suffering catastrophic impairments. consumers to anonymously report fraud. IBC works with the non-profit organization CANATICS, which analyzes pooled auto To benefit consumers, the industry has been calling for insurance data to identify potential fraud. And IBC’s award- an examination of the mandate of the Financial Services winning Provincial Auto Theft Network brings together law Commission of Ontario (FSCO), and in March, the government enforcement agencies and the insurance industry to reduce announced a review. IBC filed its submission, focusing on key auto theft and auto insurance fraud. areas of FSCO’s oversight and consumer interests. A major milestone in the fight against fraud was the 2015 The government assembled an expert advisory panel to conviction of a Peel Regional Police constable who was carry out the review, and in November the panel released its involved in a staged collision ring based in Brampton, Ont. preliminary report, which reflects industry direction. IBC asked The constable was paid to provide accident reports that made that the regulator’s role be restructured so it can respond in the ring’s staged accidents look legitimate. In total, the ring had a timely fashion to the rapid changes in industry structure, defrauded insurance companies of more than $900,000. technology, market demands and consumer expectations, and the report echoes this recommendation.

42 IBC Facts 2016 Major issues - auto theft Major issues - adapting to In 2015, IBC helped recover $23.6 million in stolen automobiles, technological innovation an increase from the $18.8 million in 2014. IBC is exploring the industry’s information needs about the array Since auto theft defies jurisdictional, political, geographical and of new auto technologies and how insurers can adapt to these administrative boundaries, IBC fights auto theft with multiple innovations. partners. One partner is the Canada Border Services Agency, The year 2015 saw a significant increase in the uptake of and in 2015 IBC and the agency seized more than $11 million telematics, also known as usage-based insurance (UBI). This in stolen cars at the Montreal and Halifax ports. Together they technology provides valuable data that significantly change the determined that organized crime was taking a different approach way insurers see their business and how they calculate premiums. to avoiding detection when exporting stolen vehicles: The The data allow insurers to determine a customer’s individual thieves were dismantling the cars and trucks and shipping parts driving behaviour, and offer him or her personalized coverage. rather than whole vehicles. To record their driving information, most UBI consumers rely on To help consumers identify if their auto is a potential target, a device that they’ve installed in their vehicles. But growing in IBC publishes an annual list of the Top 10 most frequently stolen popularity are the UBI apps for smartphones. The apps provide vehicles.. consumers with increased convenience and a daily, rather than weekly, driving report. But they provide insurers with a pressing The 10 most frequently stolen question: If consumers can turn off their smartphones, thereby disabling their UBI apps, how reliable is the driving information vehicles in Canada, 2015 that the apps provide? FORD F350 SD 4WD PU 2005 In response to requests from IBC, the Canadian Council of FORD F350 SD 4WD PU 2006 Insurance Regulators has agreed to look into the vi-ability of FORD F350 SD 4WD PU 2007 electronic proof of insurance and a common regulatory approach CADILLAC ESCALADE 4DR 4WD SUV 2006 to UBI. The council reconstituted its Electronic Commerce FORD F350 SD 4WD PU 2003 Committee specifically to do this work. FORD F250 SD 4WD PU 2006 The Autorité des marchés financiers released its Notice Regarding FORD F350 SD 4WD PU 2001 UBI Programs and confirmed IBC’s position that existing FORD F250 SD 4WD PU 2004 legislation and regulations already adequately protect consumers. FORD F250 SD 4WD PU 2007 FORD F250 SD 4WD PU 2001 Major issues - severe weather - hail Climate change and severe weather are affecting auto insurance. Major issues - road safety In particular, the increased incidence of hail has driven up IBC has long advocated for safer roads, and today’s number one premiums. Property Claims Services Canada reports that the road safety issue is driver distraction. Texting while driving is of 2014 hail and windstorm in Airdrie, Alta., and surrounding area particular concern because drivers who text are 23 times more caused more than $170 million of insured damages just to motor likely to be involved in a crash or near-crash event compared to vehicles. 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.

IBC Facts 2016 43 Home insurance

Unlike auto insurance, home or personal property Types of coverage insurance is not mandatory by law. However, it provides coverage for an individual’s single largest investment – Home insurance generally covers a homeowner’s residential a home. In fact, most banks and mortgage holders building, outbuildings, contents, additional living expenses (if require proof of insurance on property as security for the an insured event damages the home so that it is uninhabitable loan or mortgage. during the repairs) and personal liability. Tenant’s insurance generally covers loss or damage to personal belongings, As the second largest line of P&C policies after auto insurance, additional living expenses and personal liability. home or personal property insurance includes home, condominium, cottage, mobile home and tenant’s insurance. There are various types of policies: It covers the property, personal belongings and personal • An all-perils policy provides coverage for a home and liability of the policyholder and the policyholder’s spouse or its contents from loss or damage from all perils except partner, children (with age limits) and dependants (with age those specifically excluded. A peril is a chance event that and other limits). is unexpected and accidental. Some perils are excluded As with all insurance premiums, insurers consider a number of from comprehensive policies – for example, earthquakes. risk factors to determine the price an individual pays for home Coverage for this peril may be purchased as a policy add-on. insurance. For example, insurers look at the neighbourhood However, there are some excluded perils, such as overland and the frequency and types of past claims in that area; the flooding, for which home insurance may not be available. cost to replace a home’s contents and restore a home to its But availability of coverage for some perils is changing. previous condition; the condition and age of the roof; the type Following recent large floods, insurers have seen a higher of heating, electrical and plumbing systems; and details about demand for coverage. In 2015, at least two national insurers any additional structures on the property. began offering coverage for overland flooding and a few others have announced they are considering offering such Insurers analyze these risks to estimate how likely it is that coverage. a policyholder, or a group of people with the same set of circumstances, will make a claim and how much that claim • A broad-form policy provides coverage for a home from will cost. 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.

44 IBC Facts 2016 Premiums and claims IBC is calling for a national flood program built on a coordinated, private-public response to the growing problem of flooding. In 2015, private P&C insurers wrote $10.2 billion in net written Canada’s federal government is already paying for flood damage premiums for personal property insurance and paid out through the Disaster Financial Assistance Arrangements (DFAA) $5.5 billion for net claims incurred. 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 Major issues - severe weather billion on flood related expenses.

Climate change is disrupting lives and destroying homes, and is In 2015, IBC published The Financial Management of Flood Risk, a a growing concern for the industry. Over the past 60 years, the review of flood insurance programs in the other G7 countries. It weather has become wetter, with a 12% average increase in explores best practices and available models for addressing the rainfall across the country, making water damage rather than economic impact of flood. It also draws out lessons for Canada’s fire damage today’s primary cause of home insurance losses. approach to the financial management of flood risk and the role Compared to the 1950s, Canadians experience an additional of insurance. 20 days of rain per year. Canada is the only G7 country that doesn’t have a national flood The industry has identified adaptation to severe weather as a program in place. But Canada cannot copy another country’s priority issue, and IBC has responded by developing a Natural flood program and expect it to work in our vast nation. Catastrophe Strategy for Canada. The strategy encourages the industry and federal government to collaborate on two IBC is a leading voice advocating for a flood mitigation strategy. risks – flood and earthquake. The current gaps in private flood Much of the losses from flood can be attributed to aging and earthquake insurance leave governments to pick up the public infrastructure. Canada’s aging sewer and stormwater tab for these natural catastrophes. A risk-sharing partnership infrastructure simply cannot handle today’s increased with government is required for insurers to be able to offer precipitation. Infrastructure improvements are essential for affordable policies that protect the small percentage of increasing the availability of overland flood insurance coverage. Canadians who face the highest risk of earthquake and/or flood. Governments made several encouraging announcements this The strategy promotes all levels of government working year. In January 2015, the Public Safety Minister announced with the industry to improve Canada’s resilience to natural changes to the DFAA and Canada’s national Disaster Mitigation catastrophes by updating flood mapping and investing in Strategy that included $200 million for flood mitigation projects. infrastructure and flood management. It promotes earthquake- In the fall, the new federal Liberal government was elected on proofing buildings and updating building codes. The strategy a platform based, in part, on investing $5.6 billion over the next stresses that both the government and the industry need four years in “green infrastructure,” including flood mitigation to educate citizens about the steps they can take to protect systems. themselves from severe weather. Also in the fall, Alberta’s government released its first budget, During and after a severe weather event, IBC works closely which included $8.6 billion for municipal infrastructure. with government officials and reaches out to consumers Canada’s lack of effective flood risk maps, an essential risk- with advice and invite them to call IBC’s toll-free Consumer assessment tool, is also limiting the industry’s ability to provide Information Centre. 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 Major issues - flood coverage risk maps to date. This year for the first time, a few Canadian insurers began The new maps rely on the best available local climatic and offering overland flood insurance to homeowners in specific geospatial data, which was then used to build a new flood areas. But at the moment, flood insurance is likely unaffordable model tailored to the Canadian environment. The maps and for the 10% of homeowners who need it the most: those model are state-of-the-art and current for every region of the living on floodplains and in other areas at high risk of flooding. country to support assessment of flood risk. 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 Facts 2016 45 The maps are crucial for underwriting but can also help IBC continues to take a leadership approach in furthering the governments and other stakeholders. Governments can use dialogue on Canada’s earthquake risk. In British Columbia, IBC this information for urban planning and zoning purposes. They took the “Quake Cottage,” an earthquake simulator, to high- can also use it to target investment in infrastructure and risk risk communities to encourage the residents to prepare for a mitigation projects where they generate the highest return on potential quake. Also, IBC continues to help sponsor the annual investment. Provinces and municipalities can make use of these Great British Columbia ShakeOut. Launched in 2011 with maps as they consider the flood risk to infrastructure. 470,000 participants, the ShakeOut event this year saw a record 785,000 British Columbians go through the earthquake drill. In IBC continues to advocate to the government, urging it to help addition, IBC petitions the government for help in educating create a robust culture of flood risk management in Canada. At consumers to create a culture of earthquake preparedness. the same time, we’re preparing imaginative solutions to help communities manage excess water. This advocacy work has produced promising results. In March, the B.C. government released its Earthquake Preparedness In 2009, IBC began developing the municipal risk assessment Consultation Report, which recommends that the provincial and tool (MRAT) to help communities identify at-risk sewer and federal governments engage with the insurance industry and stormwater infrastructure, allowing them to prioritize their other stakeholders to develop a strategy on disaster resilience infrastructure investments. IBC continues to receive positive and increase public awareness of the need to prepare. feedback from the three pilot municipalities that employed the semi-automated statistical tool. Now IBC is taking steps to have IBC is continuing the national dialogue on earthquake MRAT fully automated, operationalized and distributed across preparedness that it initiated at its Vancouver symposium Canada. in 2014. There is an active seismic region in Quebec, and in November 2015 IBC hosted a symposium on earthquake To move ahead, IBC went back in time to study how old- preparedness in Montreal. It focused on the physical and fashioned rain barrels can help communities address modern- economic impact of a major quake in the province, and stressed day climate change. In September, IBC released the results of the need to prepare by developing emergency plans and its study in Stratford, P.E.I., where extreme weather events have ensuring that buildings meet seismic requirements. IBC stressed flooded roads and basements. For the study, IBC distributed its consumer education mandate. In Quebec, the population close to 1,000 rain barrels to families, who installed the barrels is generally not well informed about earthquake risk. An IBC under their homes’ roof downspouts to capture water during survey found that 25% of policyholders in Quebec believed rainstorms. After a year, the barrels had the potential to reduce they were covered for an earthquake, when in fact only 3% the flow rate to the treatment plant by as much as 4.5%, actually were. enough to prevent the stormwater system from overflowing. IBC has since launched a similar initiative in Cornwall, P.E.I.

Major issues - earthquakes Many 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.

46 IBC Facts 2016 Business insurance

Operating a business comes with an element of risk • Commercial property insurance is designed to protect and unpredictability. Businesses, including non-profit the physical assets of a business against loss or damage organizations such as charities, buy insurance as from a broad range of causes. Physical assets include: part of an effective risk management plan. In larger - Equipment enterprises, risk managers evaluate any perils to the - Inventory and supplies business, implement programs to reduce and manage - Office furniture and fixtures those dangers, and buy insurance to backstop remaining - Computers and electronics exposures. - Personal property of employees while on-site - Customer property at your business site Smaller businesses without the benefit of risk managers depend - Lighting systems more on the advice of insurance representatives to identify - Windows risks and help them choose the appropriate insurance to guard - Outdoor signs against potential losses. • Directors’ and officers’ insurance covers directors and Much like any other business, home-based businesses require officers of organizations for actual or alleged errors, errors coverage for possible business-related losses. For example, a or omissions, breach of duty, misleading statements home-based business owner may require commercial liability and neglect in carrying out their responsibilities for the coverage since business risks may not be covered by the liability organization. section of a home insurance policy. • Errors and omissions or professional liability insurance covers individuals and organizations who give professional Types of coverage advice (for example, consultants and financial planners). It protects them if clients claim damages as a result of There are various types of business insurance policies: inaccurate advice, misrepresentation, negligence, or • Commercial general liability covers a business and its violation of good faith and fair dealing. employees for actions against them that result in bodily • Business interruption insurance can cover against lost injury, property damage, personal injury, advertising injury, earnings during the period of a shutdown due to an event tenant’s legal liability, and other types of loss or damage to such as a fire or riot. It can cover the time the business third parties. 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.

IBC Facts 2016 47 Premiums and claims Major issues - cargo theft In 2015, private P&C insurers wrote $6.7 billion in net written Stealing trucks and transport trailers and then offloading the premiums for commercial property insurance and paid out cargo to sell for a quick profit is big business in Canada. Each $3.8 billion in net claims incurred. year, cargo theft costs the Canadian economy about $5 billion.

Also in 2015, private P&C insurers wrote $5.0 billion in net IBC leads a cargo theft reporting and recovery program with written premiums for commercial liability insurance and paid the Canadian Trucking Alliance. Launched in Ontario and out $3.1 billion in net claims incurred. 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 Major issues - cyber liability raise awareness of the costs associated with this crime. Since its launch, the initiative has received more than 800 reports of While insurance for cyber liability risk is relatively new, it’s cargo-related thefts, resulting in over $12 million in recoveries developing quickly in response to the need of businesses that of stolen goods since March 2014. engage in e-commerce and/or maintain electronic records containing customers’ personal information. Recent changes In 2015, the program became national when it was launched to Canadian privacy laws have increased the potential costs in Atlantic and Western Canada with the cooperation of law associated with a security or privacy breach. Over the past enforcement and the provincial trucking associations. few years, hackers have exposed millions of people’s private In December 2015, IBC launched its database electronically to information, costing millions of dollars to the companies allow law enforcement from across Canada to access the stolen involved. goods registry 24/7. 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 Major issues - preparing for natural internal business operations as well as cause losses for the catastrophes and climate change owners of compromised personal information. In addition, cyber liability coverage may address risks associated with IBC encourages businesses to have business-continuity and copyright infringement and losses resulting from computer disaster-recovery plans. It also promotes minimizing risks by viruses being introduced into business computer systems or installing fire alarms, identifying cyber risks and having a backup networks. There is no standard cyber liability policy, and the power source. scope, terms and conditions of each policy may vary from Large natural disasters have a profoundly negative impact on company to company. economic conditions. Typically, a disaster lowers economic growth by around one percentage point and GDP by about 2%.

48 IBC Facts 2016 Insurance organizations

50 IBC members 55 IBC offices 56 IBC services 57 Superintendents of insurance 59 Insurance-related organizations

3 IBC Facts 2016 49 IBC members

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

Issues Management This includes policy development, communications and legal services, A and services provided by regional offices. Investigative Services This includes crime ring investigations, auto theft and loss recovery services, information exchange, and communications and legal services, as they pertain B to Investigative Services. Vehicle Information Suite This 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 and the IBC services to which they subscribe, as of March 15, 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

50 IBC Facts 2016 IBC members IBC services 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 *

IBC Facts 2016 51 IBC members IBC services 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

52 IBC Facts 2016 IBC members IBC services 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 N National 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 *

IBC Facts 2016 53 IBC members IBC services 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 *

54 IBC Facts 2016 IBC offices

Head office

Don Forgeron President and CEO 777 Bay Street, Suite 2400 P.O. Box 121 Toronto, Ontario M5G 2C8

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

Regional offices Ontario Kim Donaldson Ottawa Vice-President, Ontario Craig Stewart 777 Bay Street, Suite 2400 Vice-President, Federal Affairs P.O. Box 121 8 York Street, Suite 200 Toronto, Ontario M5G 2C8 Ottawa, Ontario K1N 5S6 Tel: 416-362-2031 Tel: 613-236-5043 Fax: 416-644-4961 Fax: 613-236-5208 Québec Western and Pacific Johanne Lamanque William Adams Vice-President, Quebec Vice-President, Western and Pacific 800, rue du Square-Victoria, bureau 2410 10104-103 Avenue, Suite 2603 C.P. 336, succ. Tour de la Bourse Edmonton, Alberta T5J 0H8 Montréal, Québec H4Z 0A2

Tel: 780-423-2212 Tel: 514-288-1563 Fax: 780-423-4796 Fax: 514-288-0753

510 Burrard Street, Suite 901 Atlantic Vancouver, British Columbia V6C 3A8 Amanda Dean Vice-President, Atlantic Tel: 604-684-3635 1969 Upper Water Street, Suite 1706 Fax: 604-684-6235 Purdy’s Wharf, Tower II Halifax, Nova Scotia B3J 3R7

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

IBC Facts 2016 55 IBC services

Investigative Services Consumer Information Centres British Columbia British Columbia, 34A-2755 Lougheed Highway, Suite 571 Saskatchewan and Manitoba Port Coquitlam, British Columbia V3B 5Y9 1-844-2ask-IBC (1-844-227-5422)

Tel: 604-944-2431 Alberta Fax: 604-944-1326 1-844-2ask-IBC (1-844-227-5422)

Prairies Ontario 370, 5222-130 Avenue S.E., Suite 400 1-844-2ask-IBC (1-844-227-5422) Calgary, Alberta T2Z 0G4 Quebec Tel: 403-258-3677 1-877-288-4321 Fax: 403-255-9054 Atlantic Ontario 1-844-2ask-IBC (1-844-227-5422) 365 Evans Avenue, Suite 501 Etobicoke, Ontario M8Z 1K2

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

Québec 630, boul. René-Lévesque ouest, bureau 2440 Montréal, Québec H3B 1S6

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

Atlantic 1969 Upper Water Street, Suite 1706 Purdy’s Wharf, Tower II Halifax, Nova Scotia B3J 3R7

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

56 IBC Facts 2016 Superintendents of insurance as of January 1, 2016

Canada Manitoba Jeremy Rudin Scott Moore Superintendent Deputy Superintendent of Financial Institutions - Insurance Office of the Superintendent of Financial Institutions Canada Financial Institutions Regulation Branch 255 Albert Street 207-400 St. Mary Avenue Ottawa, Ontario K1A 0H2 Winnipeg, Manitoba R3C 4K5 Tel: 613-990-7788 Tel: 204-945-2542 Fax: 613-990-5591 Fax: 204-948-2268 www.osfi-bsif.gc.ca Email: [email protected] http://www.mbfinancialinstitutions.ca British Columbia Carolyn Rogers Ontario Superintendent and Chief Executive Officer Brian Mills Financial Institutions Commission of British Columbia Chief Executive Officer and Superintendent of Financial Services 555 West Hastings Street, Suite 2800 Financial Services Commission of Ontario P.O. Box 12116 North York City Centre Vancouver, British Columbia V6B 4N6 5160 Yonge Street, 17th Floor Tel: 604-660-3555 P.O. Box 85 Fax: 604-660-3365 Toronto, Ontario M2N 6L9 Email: [email protected] Tel: 416-250-7250 Fax: 416-590-7070 Alberta Toll-free: 1-800-668-0128 Nilam Jetha www.fsco.gov.on.ca Superintendent of Insurance Alberta Treasury Board and Finance Québec Financial Sector Regulation and Policy (FSRP) Louis Morisset 9515-107 Street, Room 402 President and Chief Executive Officer Terrace Building Autorité des marchés financiers Edmonton, Alberta T5K 2C3 800, rue de Square Victoria, 22e étage Tel: 780-427-8322 C.P. 246, Tour de la Bourse Fax: 780-420-0752 Montréal, Québec H4Z 1G3 www.finance.alberta.ca Tel: 514-395-0337 Fax: 514-873-3090 Saskatchewan Toll-free: 1-877-525-0337 Roger Sobotkiewicz www.lautorite.qc.ca Superintendent of Insurance Place de la Cité, tour Cominar Financial Institutions Division 2640, boulevard Laurier, bureau 400 Financial and Consumer Affairs Authority Québec, Québec G1V 5C1 1919 Saskatchewan Drive, Suite 601 Tel: 418-525-0337 Regina, Saskatchewan S4P 4H2 Fax: 418-525-9512 Tel: 306-787-6700 www.lautorite.qc.ca Fax: 306-787-9006 Email: [email protected] IBC Facts 2016 57 New Brunswick Yukon Angela Mazerolle Michael Noseworthy Superintendent and Director of Insurance Director of Professional Licensing and Regulatory Affairs Financial and Consumer Services Commission Mailing address: P.O. Box 2703 C5 Insurance Division Whitehorse, Yukon Y1A 2C6 225 King Street, Suite 200 Fredericton, New Brunswick E3B 1E1 Physical address: 307 Black Street Tel: 506-453-8959 Whitehorse, Yukon Y1A 2N1 Email: [email protected] Tel: 867-393-6927 www.fcnb.ca Fax: 867-667-3609 Email: [email protected] Nova Scotia www.gov.yk.ca William Ngu Acting Superintendent of Insurance Northwest Territories Department of Finance and Treasury Board Douglas Doak Financial Institutions Division Superintendent of Insurance 1723 Hollis Street, 4th floor Treasury Division, Department of Finance P.O. Box 2271 4922-48th Street Halifax, Nova Scotia B3J 3C8 P.O. Box 1320 Tel: 902-424-2787 YK Centre, 3rd Floor Fax: 902-424-1298 Yellowknife, Northwest Territories X1A 2L9 Email: [email protected] www.novascotia.ca/finance Tel: 867-920-3423 Fax: 867-873-0325 Prince Edward Island Email: [email protected] Robert A. Bradley www.fin.gov.nt.ca Superintendent of Insurance Department of Justice and Public Safety Nunavut Insurance and Real Estate Division Dan Carlson Shaw Building, 4th Floor, South Superintendent of Insurance 95 Rochford Street Department of Finance P.O. Box 2000 P.O. Box 2260 Charlottetown, Prince Edward Island C1A 7N8 Iqaluit, Nunavut X0A 0H0 Tel: 902-368-6478 Tel: 867-975-6813 Fax: 902-368-5283 Fax: 867-975-5845 Email: [email protected] Email: [email protected] www.gov.pe.ca gov.nu.ca/finance Newfoundland and Labrador John O’Brien Director of Financial Services Regulation Division Superintendent of Insurance, Real Estate, Mortgage Brokers, Securities and Pre-Paid Funerals Department of Service NL Financial Services Regulation Division 2nd Floor West Block, Confederation Building Prince Philip Parkway P.O. Box 8700 St. John’s, Newfoundland and Labrador A1B 4J6 Tel: 709-729-4909 Fax: 709-729-3205 Email: [email protected] www.gov.nl.ca

58 IBC Facts 2016 Insurance-related organizations

ADR Institute of Canada, Inc. Canadian Association of Fire Investigators 234 Eglinton Avenue East, Suite 405 310-1390 Prince of Wales Drive Toronto, Ontario M4P 1K5 Ottawa, Ontario K2C 3N6 Tel: 416-487-4733 Tel: 613-228-1934 Toll-free: 1-877-475-4353 Email: [email protected] Email: [email protected] www.cafi.ca www.adrcanada.ca Canadian Association of Insurance Women Appraisal Institute of Canada www.caiw-acfa.com 200 Catherine Street, Suite 403 Ottawa, Ontario K2P 2K9 Canadian Association of Mutual Insurance Companies Tel: 613-234-6533 311 McArthur Avenue, Suite 205 Email: [email protected] Ottawa, Ontario K1L 6P1 www.aicanada.ca Tel: 613-789-6851 www.camic.ca Canadian Association of Direct Relationship Insurers Canadian Board of Marine Underwriters 250 Consumers Road, Suite 301 2233 Argentia Road, Suite 100 Toronto, Ontario M2J 4V6 Mississauga, Ontario L5N 2X7 Tel: 416-773-0101 Tel: 905-826-4768 Email: [email protected] Email: [email protected] www.cadri.com www.cbmu.com

Canadian Association of Canadian Boiler and Machinery Financial Institutions in Insurance Underwriters’ Association 21 St. Clair Avenue East, Suite 802 c/o Sovereign General Insurance Company of Canada Toronto, Ontario M4T 1L9 2001 avenue McGill College, bureau 1750 Tel: 416-494-9224 Montréal, Québec H3A 1G1 Email: [email protected] Tel: 514-798-6196 www.cafii.com www.cbmua.org

IBC Facts 2016 59 Canadian Council of Insurance Regulators (CCIR) Canadian Life and Health Insurance Association Inc. CCIR Secretariat Email: [email protected] 5160 Yonge Street www.clhia.ca P.O. Box 85 Toronto Toronto, Ontario M2N 6L9 TD South Tower Tel: 416-590-7290 79 Wellington Street West, Suite 2300 Email: [email protected] Toronto, Ontario M5K 1G8 www.ccir-ccrra.org Tel: 416-777-2221

Canadian Fire Safety Association (CFSA) Ottawa 2800 14th Avenue, Suite 2010 46 Elgin Street, Suite 400 Markham, Ontario L3R 0E4 Ottawa, Ontario K1P 5K6 Tel: 416-492-9417 Tel: 613-230-0031 Email: [email protected] Montréal www.canadianfiresafety.com 1001, boulevard de Maisonneuve ouest, bureau 630 Montréal, Québec H3A 3C8 Canadian Independent Adjusters’ Association (CIAA) Tel: 514-845-9004 Centennial Centre 5401 Eglinton Avenue West, Suite 100 Centre for Study of Insurance Operations (CSIO) Toronto, Ontario M9C 5K6 110 Yonge Street, Suite 500 Tel: 416-621-6222 Toronto, Ontario M5C 1T4 Toll-free: 1-877-255-5589 Tel: 416-360-1773 Email: [email protected] Toll-free: 1-800-463-2746 www.ciaa-adjusters.ca 1155, boulevard Robert-Bourassa, bureau 1305 Canadian Institute of Actuaries Montréal, Québec H3B 3A7 360 Albert Street, Suite 1740 Tel: 416-360-1773 Ottawa, Ontario K1R 7X7 Toll-free: 1-800-463-2746 Tel: 613-236-8196 Email: [email protected] Facility Association www.cia-ica.ca 777 Bay Street, Suite 2400 P.O. Box 121 Canadian Insurance Accountants Association (CIAA) Toronto, Ontario M5G 2C8 c/o Base Consulting and Management Inc. Tel: 416-863-1750 2800 14th Avenue, Suite 2010 Toll-free: 1-800-268-9572 Markham, Ontario L3R 0E4 Email: [email protected] Tel: 416-971-7800 www.facilityassociation.com Email: [email protected] www.ciaa.org Fire Prevention Canada 3332 McCarthy Road Canadian Insurance Claims Managers Association P.O. Box 37009 c/o Insurance Bureau of Canada Ottawa, Ontario K1V 0W0 777 Bay Street, Suite 2400 Tel: 613-749-3844 P.O. Box 121 Email: [email protected] Toronto, Ontario M5G 2C8 www.fiprecan.ca Tel: 416-362-2031 www.cicma.ca

60 IBC Facts 2016 Fire Underwriters Survey Insurance Brokers Association of Canada Email: [email protected] 18 King Street East, Suite 1210 www.fireunderwriters.ca Toronto, Ontario M5C 1C4 Atlantic Canada Tel: 416-367-1831 238 Brownlow Avenue, Suite 300 Email: [email protected] Dartmouth, Nova Scotia B3B 1Y2 www.ibac.ca Tel: 1-877-634-8564 Insurance Bureau of Canada Québec 777 Bay Street, Suite 2400 e 255, boulevard Crémazie Est, 2 étage P.O. Box 121 Montréal, Québec H2M 1M2 Toronto, Ontario M5G 2C8 Tel: 1-800-263-5361 Tel: 416-362-2031 Ontario www.ibc.ca 150 Commerce Valley Drive West Markham, Ontario L3T 7Z3 Insurance Institute of Canada Tel: 1-800-268-8080 18 King Street East, 6th Floor Toronto, Ontario M5C 1C4 Western Canada Tel: 416-362-8586 3999 Henning Drive Toll-free: 1-866-362-8585 Burnaby, British Columbia V5C 6P9 Email: [email protected] Tel: 1-800-665-5661 www.insuranceinstitute.ca

General Insurance OmbudService Nuclear Insurance Association of Canada 10 Milner Business Court, Suite 701 401 Bay Street, Suite 1600 Toronto, Ontario M1B 3C6 Toronto, Ontario M5H 2Y4 Tel: 416-299-6931 Tel: 416-646-6232 Toll-free: 1-877-225-0446 www.niac.biz www.giocanada.org Property and Casualty Insurance General Insurance Statistical Agency Compensation Corporation 5160 Yonge Street, Box 85, 16th Floor 20 Richmond Street East, Suite 210 Toronto ON M2N 6L9 Toronto, Ontario M5C 2R9 Tel: 416 590-7526 Tel: 416-364-8677 Fax: 416 590-7070 Email: [email protected] Email: [email protected] www.pacicc.ca www.gisa.ca Reinsurance Research Council Groupement des assureurs automobiles c/o Funnel Communications Inc. 800, rue du Square-Victoria, bureau 2410 189 Queen Street East, Suite 1 C.P. 336, succ. Tour de la Bourse Toronto, Ontario M5A 1S2 Montréal, Québec H4Z 0A2 Tel: 416-968-0183 Tel: 514-288-4321 Email: [email protected] Toll-free: 1-877-288-4321 www.rrccanada.org www.gaa.qc.ca www.infoinsurance.ca Risk and Insurance Management Society, Inc. 66 Wellington Street West Institute for Catastrophic Loss Reduction P.O. Box 1021 20 Richmond Street East, Suite 210 Toronto, Ontario M5K 1P2 Toronto, Ontario M5C 2R9 ontario.rims.org Tel: 416-364-8677 Email: [email protected] www.iclr.org

IBC Facts 2016 61 Surety Association of Canada Head Office 6299 Airport Road, Suite 709 Mississauga, Ontario L4V 1N3 Tel: 905-677-1353 Email: [email protected] www.surety-canada.com British Columbia Tel: 778-995-6585 Alberta Tel: 403-612-4070 Quebec Tel: 514-389-9595

Traffic Injury Research Foundation 171 Nepean Street, Suite 200 Ottawa, Ontario K2P 0B4 Tel: 613-238-5235 Toll-free: 1-877-238-5235 Email: [email protected] www.tirf.ca

Underwriters Laboratories of Canada Customer service: 1-866-937-3852 Email: [email protected] www.ulc.ca Montreal area 6505 Trans-Canada Highway, Suite 330 St-Laurent, Quebec H4T 1S3 Tel: 514-363-5941 Ottawa 171 Nepean Street, Suite 400 Ottawa, Ontario K2P 0B4 Tel: 613-755-2729 Toronto 7 Underwriters Road Toronto, Ontario M1R 3A9 Tel: 416-757-3611 Vancouver area 130 – 13775 Commerce Parkway Richmond, British Columbia V6V 2V4 Tel: 604-214-9555

62 IBC Facts 2016 ibc.ca

@InsuranceBureau, @BAC_Quebec, @IBC_Atlantic, @IBC_Ontario, @IBC_West 416-362-2031