March 28, 2018 07:00
Photo : Freepik
In some provinces, the rate in automobile insurance, are highly regulated. Intact financial Corporation has managed to get a few hikes in 2017. The insurer intends to take advantage of it.
In 2018, Intact has been granted a rate increase of more than 5 % in some areas, said Darren Christopher Godfrey, first vice-president, insurance sector individuals. He made the remarks during a conference call with financial analysts, during the disclosure of results for the fourth quarter of 2017 to the insurer.
Mr. Godfrey added that Intact has already applied for further increases during the year. “The increases we will give a good impetus to 2019. We have already received approval for additional increases in rates for 2018. We also have several applications already filed with regulators for approval. We will continue to evaluate and apply for further rate hikes if necessary, ” he said.
These initiatives have been adopted after the insurer has noticed a rise in total losses for vehicles in Ontario, and a tendency of growth of the cost of the repairs on a national scale. The objective of Intact is to arrive at a combined ratio at around 95 % at the end of the year 2018, while he was from 101.7 % for 2017, said Mr. Godfrey.
36 % of the portfolio Intact
During the teleconference, the chief executive officer of Intact, Charles Brindamour, has encrypted the place of auto insurance in the portfolio of the insurer. Thus, 36 % of the portfolio is occupied by the automobile insurance for individuals. Mr. Brindamour has also indicated that Intact provides a vehicle on-three in Quebec, which turns out to be a profitable market for the insurer, since the damages are generally of short duration.