Market Trends of Property and Casualty Insurance Industry
This section covers the major market trends shaping the Canada Property & Casualty Insurance Market according to our research experts:
Increase in Adoption of Artificial Intelligence in Property and Casualty Insurance
Non-life insurers increasingly use AI and machine learning across customer-facing and back-end applications. The objective is to assess risks in underwriting better, strengthen fraud detection, improve customer experiences, and reduce operating overhead. While P&C insurers have been slower to digitize, telematics use has picked up sharply. Similarly, mobile applications and web portals are more commonly used by brokers and consumers for efficient claims submission and processing. Ultimately, these technologies help reduce administrative overhead and improve the customer experience.
Year-on-Year Increase in Net Written Premium
Net written premium is increasing Y-o-Y. Most of the premium was received from auto insurance, which nearly contributed 43.3% to the net written premium. This factor is expected to increase further in the coming years. The government is planning to change the auto insurance policies, as vehicles with fully automated capabilities are anticipated to launch in Canada. In 2019, out of the total net premium written, personal property's share was 22.3%, commercial property was 14.6%, liability was 10.1%, specialized was 7.4%, and accident and sickness was 2.3%.
