Research and Markets: Canada Insurance Report Q1 2012: an open market continues to perform strongly despite global economic downturn

DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/91d746/canada_insurance_r) has announced the addition of the "Canada Insurance Report Q1 2012" report to their offering.

Over the last two years, a recurrent theme in BMI's reports on Canada's insurance sector has been its strength in global terms. In November 2011, this strength remains evident. The sector is of sufficient size that many players can achieve economies of scale, even if they focus on particular geographic areas or product niches. The sector is completely open to foreign competition, with the result that it has access to capital and world class products. By most metrics, the sector has remained resilient in the face of the volatility in the financial markets and the recession in the US following the global financial crisis in late 2008. Despite a complex regulatory structure that involves institutions at the federal and the provincial levels, the standard of oversight is extremely good. For the most part, Canada's insurers have, and/or can obtain, the capital that they need.

Business Monitor International's Canada Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Canada's insurance industry.

The latest newsflow has, however, highlighted a number of short term challenges. In the life segment, the main problem has been the performance of financial markets, in Canada and elsewhere, through Q211. As a result of the sharp fall in equity prices, at a time that interest rates (short and long) have been falling, the life companies have had to increase their reserves. Sales of life insurance and savings products have, however, generally remained firm. In part because of specific marketing campaigns, the major life companies have achieved double digit growth in particular products relative to Q210. In the non-life segment, recent newsflow has revolved around three themes. One has been substantial claims losses arising from disasters in Canada. The tornado which struck Goderich, Ontario, in August 2011 is the latest major catastrophe. As usual, the non-life insurers moved very quickly to have staff on the ground to assist people who had lost homes and to begin processing claims. Another theme is that, as a result of marketing initiatives, particular companies are achieving growth in their businesses - or in particular lines - even at a time that the segment is hardly growing. The third theme is widespread concern over initiatives by OSFI, the regulator, to increase the capital requirements for the property & casualty insurers.

Companies Profiled:

• Canada Life
• CIBC Life
• Desjardins
• The Economical Insurance Group
• Intact Financial Corporation
• Fairfax Financial Holdings
• London Life
• RBC Life
• Scotia Life
• Wawanesa
• Aviva
• Chartis
• Manulife
• Royal & Sun Alliance
• Standard Life Canada
• State Farm
• Sun Life

For more information visit http://www.researchandmarkets.com/research/91d746/canada_insurance_r