Canadian Motor Claims Accelerate
Contributor: Angela Chung, Senior Underwriter P&C Canada, PartnerRe; Grace Lin, Chief P&C Pricing Actuary Canada, PartnerRe
As we turn the corner into 2010, Ontario’s 1997 CAD $ 700,000 average reported large motor loss now stands at CAD $ 3.2 million; a four-fold increase over 11 years. Given such inflation and the absence of redistributory index-linked clauses, upward non-proportional reinsurance pricing adjustments are essential to avoid a future crash in capacity and healthy balance sheet for all parties.
Pricing & models