Provincially regulated insurers in Alberta report claim ratio increase in 2008

Provincially regulated property and casualty insurers in Alberta wrote Cdn$8.04 billion in premium in 2008, marking an increase from 2007’s Cdn$7.5 billion, according to the Superintendent of Insurance’s Annual Report.
The direct claims ratio in 2008 rose to 61.3% from 56.9% in 2007.
The fidelity line had the highest claims ratio in 2008, at 124%, marking a dramatic increase from the 4.2% reported in 2007.
Automobile also increased year-over-year, from a 61.3% claims ratio in 2007 to 73.4% in 2008.
Property remained flat at 63.7% in 2007 to 63.4% in 2008.
Accident and sickness claims ratio decreased slightly from 52.5% in 2007 to 50.4% in 2008. Hail decreased from 120.1% to 90.9% year-over-year.
Notable increases in claims ratio included:
•    Aircraft: from 14.2% in 2007 to 69.7% in 2008;
•    Boiler and machinery: from 18.8% to 31.0%;
•    Legal expense: from 0% to 22.8%; and
•    Credit: from 0.1% to 65.8%.