Press Release - SEPTEMBER 13, 2019
AM BestTV Special: IFRS 17 and LIBOR Among Key Issues Facing Canada Market, Say AM Best Analysts
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 13, 2019
Heitlinger highlighted the overall performance of the Canadian property/casualty (P/C) segment over the past year.
“P/C insurers continued to be negatively impacted by volatile weather and other related events,” said Heitlinger. “Additionally, there is a volatile economic environment, as well as competitive and regulatory pressures, which are impacting the Canadian P/C segment’s bottom line.”
Looking forward, he said that, “So far, 2019, has proven to be another troublesome year, in terms of weather-related losses. AM Best believes that smarter underwriting and interpretation of greater data analytics would help mitigate future losses and improve overall results.”
McSwieney addressed how life insurers are faring against the backdrop of changing regulation, as the Life Insurance Capital Adequacy Test (LICAT) became effective in 2018, and IFRS 17 is expected in 2022.
“AM Best has a stable outlook on the Canadian life marketplace, which has been stable for almost a decade,” said McSwieney. “2018 proved to be a resilient year for the life segment. LICAT now is in the rear-view mirror, and can be viewed as a primer for what is coming up with IFRS 17, so from a capital regulatory structure, the industry is very strong. Premium growth also is showing improvement in core products, which is a good sign, and pre-tax income was good as well.”
To access the full copy of this market segment report, titled, “Canada Insurance: Still Profitable Amid Growing Challenges,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=289738 .
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