Tag Archives: auto insurance

Canadians Paying More Insurance Premiums That Most Developed Nations

Canadian consumers and businesses pay more than $80 billion a year in property & casualty insurance premiums with an upward trend consistently in excess of our anemic GDP growth rate. The total cost is now more than 3 percent of GDP. … But how does Canada benchmark relative to its global peers?

• Canadians pay higher premiums for property and casualty insurance than citizens in many, if not most, other developed nations. This Commentary uses OECD data and private industry data to compare the national P&C insurance sector’s premiums as a percentage of Gross Domestic Product with its international peers and is an update of the findings of the author’s 2021 edition of this report.

• The Commentary focuses on liability, property and auto insurance to compare costs across nations. Then, it takes a deeper dive into the Canadian data to compare personal property and auto insurance among all provinces and territories.

When it comes to costs for property insurance, the study finds Canada is in the top ranks, paying 1.23 percent of GDP in premiums, almost double the 0.66 percent average of other G7 peers and even higher than the 0.52 percent OECD average. For automobile insurance (which here includes both personal and commercial), Canadians appear to be paying, on average, the highest premiums in the world, relative to GDP.

• Within Canada, inter-provincial benchmarking for personal property insurance shows the higher average premiums paid in Canada – relative to the rest of the developed world – appear to be shared equally by most provinces. However, province-by-province comparisons of personal auto insurance show that there are substantial differences among provinces, with four jurisdictions producing higher-than-average results. Two of the four (Saskatchewan and Manitoba) are government-monopoly jurisdictions – in fact, these are the two highest in terms of costs. The two other outliers (Ontario and Alberta) are served by a competitive private sector, but Alberta has chosen until very recently to maintain a costly tort environment and Ontario mandates particularly generous accident benefits and has experienced a plague of auto theft.

• In the case of automobile insurance, just a handful of provinces need to think harder about how to improve car insurance premiums. But to reduce the cost of living for homeowners, the solutions required must be national in scope and include public/private partnerships to share the rapidly increasing risk-transfer price of natural catastrophe events.

Read the full article by Alister Campbell via this PDF.

World Agencies Are Eradicating Car Hacking

With Cars becoming more like smartphones nowadays, we thought we’d take a look at the growing concern of Car hacking, a phenomenon that’s sending chill up motorists’ and manufacturers’ spines across the globe, more efficiently than any air-conditioning unit could ever do.

However, perhaps even more importantly, we’ll tell you what the world’s governing agencies are doing to help eradicate car hacking and what YOU can do to prevent your car from being hacked. For the Silo, Louis S. Dixon and our friends at Select Car Leasing UK.

who discovered car hacking infographic