A quick glance at the 2007 data might suggest things remain favorable for auto insurers in Canada. But a loser examination reveals some troubling signs, especially in light of the fact that Ontario accounts for more than half the private auto insurance business in the country. The price of the product remains a good news story for consumers all across the country, including Ontario. Outside of Ontario, the underwriting results remain positive. Following government reforms, auto insurance markets in Alberta and Atlantic Canada improved in 2004 and have remained stable, competitive and profitable since then. The auto insurance story for most provinces remains relatively positive, albeit less so when the effect of reserve releases is removed. The most worrisome exception, of course, is Ontario. In fact, if claims continue to grow in 2008 at the rate at which they accelerated in 2007, Ontario auto insurers could find themselves dipping into capital in order to keep the line of business afloat.

Growth rate
Underwriting
Insurance rates