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Canadian insurance market continues to show “steady growth”: CatIQ

26th May 2023 - Author: Jack Willard

Catastrophe Indices & Quantification Inc. (CatIQ), a subsidiary of Zurich-based PERILS AG, has released the annual update of its Canadian insurance Industry Exposure Database (IED).

CatIQAccording to the latest IED update, the Canadian insurance market continues to show “steady growth” for personal lines specialty perils cover in the 2022 year-end dataset.

Since the start of data collection in 2016, there has been a compound annual growth rate (CAGR) of 17% in the personal lines flood total sums insured.

According to the firm, personal flood exposure currently stands at C$6.2 trillion.

Moreover, the IED is developed with the support of the Canadian P&C industry and now contains 2022 year-end estimates of Canadian industry property sums insured.

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Laura Twidle, President and CEO of CatIQ, commented, “The significant growth in personal lines flood insurance in recent years is clearly a positive development for the market. This, in combination with the announcement from the Government of Canada relating to the creation of a national flood insurance program, will undoubtedly help to bolster the protection of Canadians’ assets. I would like to take this opportunity to thank all our participating insurers for their support in the production of this database.”

Launched in June 2018, CatIQ’s IED is based on detailed exposure submissions from the majority of the Canadian insurance market. Consistent with PERILS’ globally recognized methodology, CatIQ’s IED is updated annually from the ground-up.

The loss dataset is now comprised of eleven major events, including the 2016 Fort McMurray Wildfire, the 2018 Windstorm in Ontario and Quebec, the 2018 Ottawa and Gatineau Tornadoes, the 2020 Fort McMurray Ice Jam Flooding, both the 2020 & 2021 Calgary Hailstorm’s, the 2021 British Columbia Flooding, the 2022 Ontario and Quebec Derecho, and 2022’s Hurricane Fiona.

CatIQ also noted that both the 2022 Eastern Canada Bomb Cyclone and the 2023 Ontario & Quebec Spring Ice Storm will be available on the dataset in the near future too.

Luzi Hitz, CEO of PERILS, added: “I congratulate the CatIQ Team for the successful launch of the Canadian IED 2023. CatIQ’s high-quality market exposure and loss data not only support a range of model validation and market benchmarking activities but also facilitate risk transfer via industry loss-based re/insurance products. The industry loss data thereby serve as triggers while the exposure data enable the assessment of the expected loss costs of such transactions. In addition, structured industry loss triggers can be designed which follow the protection buyer’s portfolio and thus reduce basis risk.”

CatIQ’s IED module is available on CatIQ’s platform along with the Canadian catastrophe loss database.

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