Canda

Insurance market. Report

Why CANADA ?
Canada has the 1th (nominal) or 15th-largest (PPP) economy in the
world (measured in US dollars at market exchange rates), is one of the
world's wealthiest nations, and is a member of the Organisation for
Economic Co-operation and Development (OECD) and Group of
Seven (G7). As with other developed nations, the Canadian economy is
dominated by the service industry, which employs about three quarters
of Canadians. Canada is unusual among developed countries in the
importance of the primary sector, with the logging and oil industries being
two of Canada's most important. Canada also has a sizable manufacturing
sector, based in Central Canada, with the automobile industry and aircraft
industry being especially important. With a long coastline, Canada has the
8th largest commercial fishing and seafood industry in the world.[ Canada
is one of the global leaders of the entertainment software industry.

Purpose of Insurance
What is insurance and why is it important?
The major function of P&C insurance... is simply to restore your property and
possessions or business to the point it was before the insurable incident occurred, to reestablish normalcy in your life. The economic structure of the insurance industry is built
around a system in which the cost of the losses of the few is shared among the many.
Insurance can be viewed as a large pot into which all premiums are placed. The pot has to
provide for payment of the losses of those who have claims, the cost of running the
business, plus a reasonable profit for the provider.

Insurance is all about managing risk and providing financial

compensation in the event of a loss. Generally, the risks people
face fall into the following categories:

Personal risk
People are their own greatest asset. Financial loss will almost always accompany the loss
of ones health or life.

Property risk
People will incur a financial loss when owned property is destroyed or damaged.

Liability risk
When peoples action result in injury or damage to others, the law generally provides that
they be held financially responsible.

In Canada, an insurance policy can be purchased directly from a

company, from an insurance agent of a company, or from an
insurance broker who advises you on your appropriate coverage
and shops on your behalf among a choice of recommended
providers.

Types of Insurance
What is property & casualty insurance?
Property and casualty (P&C) or general insurance involves all types of insurance other
than life and health insurance. It includes:

Automobile insurance
Automobile insurance premiums represent more than fifty percent (50%) of all
property and casualty premiums in Canada.
All vehicles by law have to be insured for third party liability at a minimum. Most
drivers also insure themselves against damage to their vehicle or loss to theft or fire.
In B.C., Saskatchewan and Manitoba automobile insurance is government owned and
administered through broker agencies. Private automotive insurance companies
operate in the balance of Canada.

Property insurance
Personal and business properties represent the second largest source of premiums to
insurers.
Home owners with mortgages are legally required to insure their property against loss or
injury to others. Most owners also protect their belongings, both in and out of the house,
with additional contents insurance.
Personal property insurance refers to insurance policies provided for property having a
personal or non-business use. Types of personal property policies includes:
Tenants insurance;
Homeowners insurance;
Mobile home insurance;
Condominium unit owner insurance;
Secondary dwelling insurance;
Seasonal dwelling insurance.

Business Insurance
Commercial property insurance refers to insurance policies provided for property having a
business use. In addition to providing coverage for loss, damage and liability issues, on
both the premises and contents, business owners buy protection for the indirect loss of
business costs associated with having to suspend operations while recovering from an
incident.

Liability insurance
Liability insurance provides protection when the policy holder is financially responsible
for injury or damage they cause to others. Premiums from liability insurance represent the
third major source of income to insurers.

In Canada are :

2 main categories of
Life Insurance TERM
PERMANENT

TERM
NO CASH VALUE
YEARS BEFORE
RENEWAL
(10, 20, 30)
EXPIRES AT
AGE OF 80 OR 85

You can also choose :

TERM 100
LEVEL PREMIUM
NO CASH VALUE
NEVER ENDS

PERMANENT Life Insurance

Has again 2 main categories :

WHOLE LIFE
UNIVERSAL LIFE

PERMANENT
Universal Life
Broken Policy
Life insurance and investments are separated into
different parts.
Returns are fixed to the stock and bond markets
More risk and potentially higher returns

PERMANENT
Whole Life
More secure and guaranteed
Managed by the insurancecompany
Dividends are paid
Its guaranteed and you will never lose money!

The Canadian government regulate the Insurance Companies and the Insurance policy
is regulated also by the government contract , called Assuris .
Insurance Companies in Canada . Have been around since 1870 . There is Longest
Running and Largest Companies in Canada . There are Liquid and Secure and there
pay Claims when you need.

The 5 Biggest Canadian Insurance Companies

1. Manulife Financial Corp.

2. Power Financial
3. Sun Life Financial, Inc.
4. Fairfax Financial
5. Industrial Alliance Insurance