Reported claim cost information for Canadian commercial insurers reveals a deterioration in loss ratio of 38.4% in accident year 2016 compared to the same period in 2015, according to Willis Towers Watson’s (WTW) Commercial Lines Insurance Pricing Survey – Canada (CLIPS Canada).
Released on Wednesday, CLIPS Canada summarized aggregate results for the third quarter of 2016. The most recent survey compared prices charged on policies underwritten during the third quarter of 2016 to those charged for the same coverage during the same quarter in 2015. For the most recent survey, data was contributed by six Canadian insurers/groups, representing close to 20% of the Canadian commercial insurance market, information from WTW said.
Once per quarter, participating companies provide premium volume, changes in prices for the latest quarter for each of the surveyed commercial lines of business they write, as well as their estimate of the changes in loss costs for that business.
Among the aggregate findings – which are intended to exclude catastrophes:
- Carrier estimates of the claim cost change underlying the loss ratio movement is -0.3% for accident year 2015 and 36.8% for 2016 for the aggregate of the participants.