June 20, 2018 by Staff
Auto physical damage (PD) losses were on the rise in the first quarter of 2018—particularly in Ontario.
According to MSA Research’s latest Quarterly Outlook Report, the overall private passenger PD direct loss ratio hit 106.1% in the province in Q1.
While the Greater Toronto Area did experience more snow in the first quarter of 2018—21 cm more compared to Q1 2017—MSA also points to the rising cost of repairs, distracted driving and repair shop fraud as other contributing factors.
Most insurers experienced worse results in Q1 2018 compared to Q1 2017, and those that saw improvements still had high loss ratios. Notably:
MSA suggests that offering a premium discount to drivers who agree to be restricted to preferred shops for auto repairs—a measure that might require regulatory changes—could help reduce fraud.
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This story was originally published by Canadian Insurance Top Broker.