Auto loss ratios increased 2.6% in 2006

Loss ratios on the auto side for Canada’s Top 100 auto insurers collectively increased 2.6% in 2006, according to a report released by A.M. Best.

In its statistical study, Canada Auto, 2006 Direct Premiums Written, A.M. Best notes that even though 2006 direct written premiums for Canada’s Top 100 auto insurers amounted to Cdn$19.5 billion in total (a 5.2% increase over the previous year), net loss ratios inched up from 68.9% in 2005 to 71.5% in 2006.

Across all lines, including auto, A.M. Best’s study shows direct premiums written in 2006 for Canada’s Top 100 property and casualty companies amounted to Cdn$38.6 billion. Again in terms of all lines, the total net loss ratio for Canada’s Top 100 P&C insurance companies represented in the A.M. Best study was 62.4%.

A.M. Best’s figures show the top 25 Canadian auto insurance writers accounted for 63.5% of the share of 2006 DPW. The remaining 75 auto insurers in the study accounted for 36.5% of the DPW.