Annual Report 2016-2017

​​Superintendent's Report on Insurance 2016

TABLE OF CONTENTS

LETTER TO MINISTER OF FINANCE

The Honourable Charles Souza

Minister of Finance

7 Queen's Park Crescent

Toronto, ON M7A 1Y7

 

Dear Minister,

 

I am pleased to present the 138th annual report under section 36 of the Insurance Act for the year ended December 31, 2016. Prior to the creation of the Financial Services Commission of Ontario, this report was issued by the Superintendent of Insurance.

 

In addition to the information contained in this report, a listing of all licensed insurers is published in each July in The Ontario Gazette. This list contains the names of the insurers, their addresses, telephone numbers, chief agents, and the classes for which they are licensed. During the year, information concerning newly licensed insurers and changes to existing licences is also published in Bulletins issued by the Financial Services Commission of Ontario. Any broker or member of the public can verify whether a particular insurer is licensed by calling our offices at 416-250-7250 or checking our website at www.fsco.gov.on.ca.

 

News releases and warning notices containing other information of public interest are made throughout the year. These announcements effectively reach a large number of Ontario residents. Information is also supplied to industry trade associations for inclusion in their publications to reach more specialized audiences. The Financial Services Commission of Ontario issues Bulletins as required to provide information to insurers and other individuals interested in the insurance industry.

 

Yours, sincerely,

Signature of Brian Mills, Chief Executive Officer and superintendent of Financial Services 

Brian Mills

Chief Executive Officer and

Superintendent of Financial Services

 

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SUMMARY FINANCIAL INFORMATION

Summary of Companies Licensed by Type of Business Activity

As of December 31, 2016

 

Business TypeTotal 2015AdditionsWithdrawalsTotal
2016
OntarioExtra ProvincialFederal
Property & Casualty Companies2022101944715132
Life Insurance Companies67126601452
Reinsurance Companies3322331131
Reciprocal Exchanges110110730
Fraternal Societies1400141013
Totals 327               5               15 317 56 33 228

Notes:

1. Companies writing both property and casualty and life business are listed under Life in the above summary. Their financial performance is shown separately by business type in the following report.

2. Branch operations are included in the Federal totals.

3. The Superintendent’s Report 2016 records figures as of the end of the calendar year (December 31, 2016), based on the companies’ annual filings. The Financial Services Commission of Ontario Annual Report 2016-2017 records figures as of the end of the fiscal year (March 31, 2017).

 

INSURER STATISTICS

FSCO calculates how many companies represent 80 percent of the market for key products to gauge the level of competition. These figures are based on individual companies rather than groups of affiliated companies.

 

2016 Property and Casualty Insurers

Number of companies representing 80 per cent of the Ontario market share

 

2016 Property and Casualty Insurers – Number of companies representing 80% of the Ontario market share 

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2016 Life Insurers

Number of companies representing 80 per cent of the Ontario market share

2016 Life Insurers - number of companies representing 80 per cent of the Ontario market share 

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Insurance is a $48 billion business in Ontario. In 2016, of the total premium dollar volume, 50.3 per cent went to the property and casualty (including automobile) insurance industry, and 48.9 per cent went to the life insurance industry. 

 

PREMIUM STATISTICS

2016 Direct Written Premium Volume in Ontario

Total $48,061 (in millions)

 

2016 Direct Premium Volume in Ontario 

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2016 Property and Casualty Insurance Companies, Direct Written Premiums in Ontario

Total $24,194 (in millions)

 

2016 Property and Casualty Insurance Companies, Direct Written Premiums in Ontario  

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Property and Casualty insurers received $24.2 billion in premiums in 2016. The split among automobile, property and liability insurance remained constant compared to 2015. 

 

 

2016 Life Companies, Direct Written Premiums in Ontario

Total Premiums Written $23,497 (in millions)

 

 

 

2016 Life Companies, Direct Written Premiums in Ontario 

 

Description of 2016 Life Companies, Direct Written Premiums in Ontario image [New Window]

 

The broad pattern among life insurance companies likewise remained constant. Of the $23.5 billion spent on premiums, 43.3 per cent went towards the purchase of accident and sickness coverage, 40.9 per cent towards the purchase of individual and group life coverages and 15.8 per cent towards annuities.

 

 

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Property and Casualty Companies [New Window]

 

Life Insurance Companies [New Window]

 

Reinsurance Companies[New Window]

 

Fraternal Societies[New Window]

 

Reciprocal or Interinsurance Exchanges[New Window]

 

FINANCIAL SUMMARY NOTES

 

  1. The company's licence is limited to automobile risks of Toronto Transit Commission.
  2. No financial information was received from Canadian Farm Insurance Corporation in 2016.
  3. No financial information was received from The Mutual Fire Insurance Company of British Columbia 2016.
  4. Licence is subject to the condition that the company shall not undertake or renew contracts of insurance, except the company shall be permitted to issue lien bonds in connection with existing policies in order to satisfy existing claims under these policies.
  5. No financial information was reported for International Insurance Company of Hannover SE in 2016.
  6. The former name of Petline Insurance Company was Western Financial Insurance Company.
  7. No financial information was reported for Safety National Casualty Corporation in 2016.
  8. Condition in licence that Reliance Insurance Company shall not undertake or renew insurance contracts in Ontario from August 2001.
  9. No financial information was reported for State Farm Fire and Casualty Company in 2016.  The company has terminated insurance businesses in Canada.
  10. No financial information was reported for State Farm Mutual Automobile Insurance Company. The company has terminated insurance businesses in Canada.
  11. The Shipowners' Mutual Protection and Indemnity Association (Luxembourg)'s licence is limited to the servicing of existing policies.
  12. No financial information was reported for XL Insurance Company SE in 2016. The company has ceased operations in Canada.
  13. No financial information was reported for Phoenix Life Insurance Company in 2016.
  14. No financial information was reported for Principal Life Insurance Company in 2016.
  15. No financial information was reported for State Farm International Life Insurance Company Ltd. in 2016.
  16. The former name of PartnerRe Life Reinsurance Company Of Canada was Aurigen Reinsurance Company.
  17. No financial information was reported for Ukrainian Fraternal Society Of Canada in 2016.
  18. No financial information was reported for Canadian Egg Industry Reciprocal Alliance in 2016. 

 

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