Québec's automobile insurance industry continued to post significant profits in 2008

Insurance

Québec City – The Autorité des marchés financiers (AMF) has released the 2008 report on automobile insurance rates, tabled today in the Québec National Assembly by Minister of Finance Raymond Bachand.

The report notes the developments and trends in Québec’s automobile insurance industry for 2008. It is intended for both the public and professionals operating in the industry, a large segment of Québec’s insurance sector.

This year once again, the automobile insurance industry is clearly in good health. Insurance companies posted significant profits—10.9% of premiums written—thus maintaining the positive trend observed over the past eight years.

Automobile insurance products in Québec are still abundant and diversified. The underwriting capacity of insurers operating in Québec also seems more than sufficient to meet demand. Several factors indicate that this market is still competitive, including the downward movement in rates and the increase in amendments made to rate manuals. Québec-chartered insurers still dominate the Québec market, with 61% of the $3.067 billion of automobile insurance premiums written in 2008.

This situation benefits consumers. The AMF encourages consumers to act in their best interests and to not hesitate to ask for bids from different insurers and brokers in order to be in a better position to compare the proposed prices and services offered. In addition, by comparing insurance premiums and asking for additional information about the applicable terms and the services offered, consumers help maintain healthy competition in the insurance industry.

For more in-depth information about automobile insurance in Québec, the report is available (in French only) on the AMF website.

The Autorité des marchés financiers is the regulatory and oversight body for Québec's financial sector.

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