The Canadian Insurance Market
 Canada is the second largest country in the world, a land of vast distances and rich natural resources. It became a self-governing dominion with parliamentary democracy in 1867 retaining ties to the British crown. Also Canada economically and technologically developed in parallel with states in many respects, including its economy; social, political, legal and healthcare systems; natural disasters and claims philosophy.
Among long term concerns are the relationship with Quebec, French-speaking province of unique culture, and the flow south to the United States of professionals lured by higher pay, lower taxes, and the rich high-tech infrastructure.
It is interesting that fresh water makes up over 10 percent of the total area, and the coastline is the longest the world (273,792 km) and nearly all population (about 90 percent) of 30 million people is concentrated within 160 the near the United States / Canada border.
Economy
Canada closely resembles today the United States with its affluent, high-tech industrial society, market-oriented economic system, pattern of production, and high living standards. Since 1993 real rates of grows of Canada have averaged nearby 3 percent, unemployment is falling, and government budget surpluses are being partially devoted to reducing the large public sector debt.
The trade and economic integration of Canada with the United States have dramatically increased after approving the 1989 U.S. – Canada Free Trade Agreement and 1994 North America Free Trade agreements. Since then Canada enjoys stable economic development due to its great natural resources, skilled labor force, and modern capital plant.
There are about 230 actively competing private property and casualty insurers in Canada, along with 27 providers of sickness, life and accident. The compulsory auto insurance is provided exclusively by government owned auto insurers in Manitoba, Saskatchewan and British Columbia. The bodily injury part of automobile insurance in Quebec is also provided by government-owned insures.
The following table presents net premiums list by line of business.
| 1999 (Can $000,000) |
| 36.73 % |
10.206 |
Auto (including commercial |
| 8.82 % |
2.450 |
Commercial Property |
| 6.43 % |
1.788 |
Commercial Liability |
| 12.75 % |
3.544 |
Personal Property |
| 3.33 % |
925 |
Other |
| 31.93 % |
8.873 |
Accident, Sickness |
| |
Can $ 27.786 |
Total |
Automobile insurance is the largest single class of genetic insurance in Canada. Total premiums for automobile insurance exceed all other classes total, then ranks property insurance, followed by liability one.
The federal or provincial governments supervise general insurance companies operating in Canada. About 100.000 people are employed by private property and Casualty insurance in Canada, including independent brokers, actuaries and adjusters. Many others get income from the payment of insurance claims, such as car repair, construction, low, medicine and accounting.
There in no rule as to which currency must be selected to pay premium, and most international commercial policies are written in the United State dollars.
The Canadian Insurance industry is a major part of the social and economic activity of Canada with registered sales over CAN $18.7 billion in 1999 and assets of CAN $59.4 billion.
The smooth running of the industry is ensured by the close cooperation of insurers and government.
Both federal and provincial governments supervise and regulate the conduct of the general insurance business in Canada. The solvency and stability of registered insurance companies are supervised by the federal Office of the Superintendent of Financial Institutions. The activities of P&C insurance are governed by the Office of the Superintendent of Financial Institutions Act and the insurance Companies Act. The supervision of the terms and conditions of insurance contracts and the licensing of companies, agents, brokers, and adjusters is predominated by provincial authorities.
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