Montréal - The Autorité des marchés financiers (AMF) has published its 2012 report on automobile insurance rates (pdf - 1 MB)This link will open in a new window (in French only) tabled today in the Québec National Assembly. The report highlights the developments and trends in Québec automobile insurance for 2012.
Positive trend despite lower profits than in 2011
An analysis of the rates charged by automobile insurers in 2012 shows that they posted lower profits overall than in 2011. The profits represent 9.2% of premiums written in 2012, down from 11.1% in 2011. This can be explained in part by increased payouts following occurrences suffered in 2012, while the level of premiums written remained the same as in 2011.
Despite lower profits, the results indicate that the favourable trend observed over the past decade is continuing. Insurers are maintaining results which exceed historical returns generally expected by insurers, since claim frequency remains relatively low notwithstanding the increase observed in 2012.
Good for consumers
Automobile insurance products in Québec continue to be abundant and diversified. The array of products means that consumers can meet their insurance needs. Despite an increased concentration in certain sectors, the Québec automobile insurance market remains competitive. In fact, several factors point to the competitive nature of the market, including the decrease in rates observed for a tenth consecutive year. Québec-chartered insurers still dominate the home market, grabbing 55% of the $3.1 billion of automobile insurance premiums written in 2012.
In the best interests of consumers, the AMF encourages them to ask for bids from different insurers and brokers so as to be able to compare prices and services. In addition, by comparing insurance premiums and asking for additional information about applicable terms and services offered, consumers help maintain healthy competition in the automobile insurance industry.
More information about automobile insurance in Québec is available in the report posted on the AMF website.
The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial sector.
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