Quality insurance: Canadian economic growth and an expanding population will benefit the industry

The Property, Casualty and Direct Insurance industry in Canada has grown steadily over the past five years and has benefited from gradual growth in Canadian disposable incomes, property values and residential values, which has enabled industry operators to charge higher premiums. Moreover, as the Canadian population has grown, aged, urbanized and gotten progressively wealthier, demand was boosted for property, casualty and direct insurance, due to an expansion in the industry's potential client base. Over the five years to 2023, the industry will continue to benefit from increased demand due to an expanding Canadian population and higher premium prices driven by anticipated growth in the household wealth and asset values...read more.

Industry Statistics & Market Size
Revenue
$58bn
Annual Growth 13-18
2.3%
Forecast Growth 18-23
Profit
Employment
124,476
Businesses
299

Industry Threats & Opportunities

  • Technological changes will enable industry operators to decrease operational expenses
  • In 2016, the industry experienced the worst year on record, due to increased claims related to the Alberta wildfires
  • A pending increase in interest and lending rates may dissuade potential homebuyers
  • Industry Report - Industry SWOT Analysis Chapter

    The Property, Casualty and Direct Insurance industry in Canada is in the mature stage of its economic life cycle, characterized by slow underlying demand growth, strong market acceptance of products and market saturation. Industry value added (IVA), which measures an industry's contribution to the overall economy, is expected to increase at an annualized rate of 2.9% over the 10 years to 2023. Conversely, Canadian GDP is projected to grow at an annualized rate of 1.9% during the same period. IVA growth that is faster than that of GDP typically indicates an industry in its growth stage. However, there are other factors that indicate this industry's maturity...purchase to read more.

    Additional Insights for the Property, Casualty and Direct Insurance Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Property, Casualty and Direct Insurance Industry are

  • Ability to effectively manage risk
  • Having a cost-effective distribution system
  • Management of a high-quality assets portfolio
  • IBISWorld analysts also discuss how external factors such as Number of motor vehicle registrations and Value of residential construction in the Property, Casualty and Direct Insurance industry impact industry performance..

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    What's in this report

    What is the Property, Casualty and Direct Insurance Industry?

    Companies in this industry are engaged in underwriting insurance policies that protect individuals, businesses and agencies against losses that occur as a result of property damage, liability or other risks. Additionally, companies in this industry provide reinsurance service, assuming all or part of the risk associated with existing insurance policies. This industry does not include insurance or reinsurance coverage for life, disability, accidental death, dismemberment or health risks.

    Industry Products
  • Auto
  • Commercial property
  • Personal property
  • Liability
  • Specialized
  • Industry Activities
  • Directly underwriting private automobile insurance
  • Directly underwriting public automobile insurance
  • Directly underwriting homeowners insurance
  • Directly underwriting title insurance
  • Directly underwriting workers' compensation insurance
  • Directly underwriting medical malpractice insurance
  • Reinsuring policies from other insurance companies
  • Automobile reinsurance
  • Surety and title reinsurance
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of motor vehicle registrations
  • Value of residential construction
  • Number of adults aged 65 and older
  • Per capita disposable income

  • Current Performance
  • Hardening pricing cycle and improved investment income
  • Consolidation in the industry
  • Chart: Revenue Growth

  • Industry Outlook
  • Ownership rates stagnate
  • Technology and consolidation
  • Global warming and natural catastrophes
  • Table: Property, Casualty and Direct Insurance Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Property, Casualty and Direct Insurance Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing In Canada
  • Retail Trade In Canada
  • Colleges & Universities in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Insurance Brokers & Agencies in Canada

  • Products & Services
  • Auto
  • Personal property
  • Commercial property
  • Liability
  • Specialized
  • Other
  • Chart: Property, Casualty and Direct Insurance Industry Products and Services Segmentation

  • Demand Determinants
  • Property and casualty insurance
  • Reinsurance demand

  • Major Markets
  • Personal
  • Commercial
  • Other
  • Chart: Major Market Segmentation for the Property, Casualty and Direct Insurance Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitClaims and loss adjustment expensesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Property, Casualty and Direct Insurance

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Property, Casualty and Direct Insurance Industry

  • Industry Globalization
    Intact Financial Corporation, Aviva Canada Inc., Desjardins Group, Co-operators Group, Lloyd's Underwriters, TD Insurance Group, Wawanesa Life Insurance Company, RSA Insurance Group,
  • Table: Intact Financial Corporation - financial performance
  • Table: Aviva Canada Inc. - financial performance
  • Table: Desjardins Group - financial performance
  • Table: Co-operators Group - financial performance
  • Table: Lloyd's Underwriters - financial performance
  • Table: TD Insurance Group - financial performance
  • Table: Wawanesa Life Insurance Company - financial performance
  • Table: RSA Insurance Group - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Property, Casualty and Direct Insurance Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Property, Casualty and Direct Insurance Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Number of Motor Vehicle Registrations (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Capacity
  • The supply of insurance or the maximum amount of insurance a company or market can underwrite, which is determined by a firm's financial strength or surplus.
  • Title Insurance
  • Indemnity insurance that protects against financial loss from defects in title to real property and from invalidity of mortgage liens.
  • Underwriting
  • The process where insurers assess the risks to insure and decide how much to charge for those risks.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Property, Casualty and Direct Insurance market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Property, Casualty and Direct Insurance:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Property, Casualty and Direct Insurance market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Property, Casualty and Direct Insurance, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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