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Q: The size of the market for various insurance products in Ontario Canada ( Answered,   0 Comments )
Subject: The size of the market for various insurance products in Ontario Canada
Category: Business and Money
Asked by: doug0303-ga
List Price: $200.00
Posted: 15 Jun 2006 11:55 PDT
Expires: 15 Jul 2006 11:55 PDT
Question ID: 738463
Size of the insurance markets in Ontario.

I am interested in determining the size of the market for the
following insurance products in Ontario, Canada.

 - Life insurance policies - an estimate of the number of people
between the age of 20-50 who are covered by life insurance that they
have purchased themselves.  I would also like to have an estimate of
the number of people to whom a new or additional policy might be sold.

I would like to know the total value of insurance premiums paid for
life insurance in Ontario in the last two years.

 - Home fire insurance - I would like to know the number of dwellings 
- houses, town houses and condominiums that are covered by fire
insurance and the average cost of a policies for each.

I would also like to know the total value of premiums paid in the last
two years for home insurance policies in Ontario.

 - Auto insurance -  I would like to know how many residents of
Ontario are covered by auto insurance vs the number of drivers.

I would like to know the total value of premiums paid for auto
insurance in Ontario in the last two years.
Subject: Re: The size of the market for various insurance products in Ontario Canada
Answered By: belindalevez-ga on 19 Jun 2006 11:51 PDT
<Ontario insurance market.

Estimate of the number of people aged 20 to 50 in Ontario with
personal life insurance ? 3,345,131

Population - 12,599,364
Approximately 45% aged 20 to 50
59% with personal insurance.

An estimated 41% or 1,371,503 people could be sold a new or additional policy.
A survey has shown that between 37% and 45% of people have inadequate policies.

The latest figures that the life insurance industry has available are
for 2004 and 2003.
Life insurance coverage end of 2004. 
Individual ? $585,382 million
Group ? $493,982

Life insurance purchases 
Individual ? $74,029 million
Group ? $30,064 million

Premium income 
Individual $4,116 million
Group $1,731 million

At the end of 2004, about 6.8 million residents of Ontario owned $1.1
trillion of life insurance.

For Ontario residents with life insurance, the average amount of
coverage per insured individual was $157,900 at year end compared with
the national average of $149,400.

During 2004, $104.1 billion of life insurance was purchased in
Ontario. This represented 41.65 of the $250 billion of life insurance
purchased by all Canadians.

71% of new life insurance protection was bought on an individual
basis. Individual life insurance totalled $74 billion for the year.
During 2004, about 335,000 individual life insurance policies were
purchased in Ontario. The average size of new individual policies was

Source: The Canadian Health and Life Association.

Insurance is a $30.8 billion business in Ontario. In 2004, 43.3
percent of premium dollars went to the life insurance industry and
55.7 percent went to the property and casualty insurers.

Of the $13.3 billion spent on life insurance, 22.1 percent went to buy
annuities, 40.6 percent to purchase individual and group life coverage
and 37.3% to obtain accident and sickness insurance.

Individual life policies direct written in Ontario - $3,843 million.

In 2004, there was $3,790 million worth of  property insurance
premiums written in Ontario.

Automobile premiums were $9,699 million (56.5 percent of P&C premiums)in 2004.

This report also gives a breakdown of the value of premiums written
and claims by each insurance company in Ontario.
Source: Financial Services Commission of Ontario.

In 2003, insurance was a $31 billion business in Ontario. 45 percent
of the total preium dollar, went to the life insurance industry and
54.1%  went to the property and casualty industry. Property insurance
premiums were $4,011 million (23.9%).

$14 billion was spent on life insurance:
annuities ? 19.8%
individual and group life coverage ? 40.5%
accident and sickness insurance ? 39.7%

Automobile premiums - $9506 million ? 56.8%
Property $4,011 million ? 23.9%

Net premiums written for personal property  in 2004 - 5,079,000,000,
15.3% of total premiums. This report gives figures from 1984 to 2004.
Source: IBC.

70 percent of Canadians have life insurance. 61 percent of those
covered review it less than once a year.

When asked what they consider to be the most difficult part about
buying life insurance, Canadians with coverage offered a variety of
responses, but the most prominent relate to difficulty choosing the
right coverage and policy terms (34 per cent), which includes deciding
on the right kind of coverage (16 per cent), deciding on the amount of
coverage (11 per cent) and understanding the policy (7 per cent).

LIMRA International research found that 45 per cent of widows and 37
per cent of widowers said that the life insurance coverage their
spouse had was inadequate.

Half (48 per cent) of Canadians say they purchased life insurance on
their own, one quarter (26 per cent) say they have coverage both at
work and on their own, and 24 per cent say they only have coverage
through work.

71 percent of Ontarians have life insurance.

Source: RBC Insurance/Ipsos-Reid survey

LIMRA research shows that many people procrastinate, even when they
know they need more life insurance. In a LIMRA survey of both buyers
and nonbuyers of life insurance, 4 in 10 of the nonbuyers said they
were afraid of making the wrong decision, half said they couldn't
decide how much to buy, and 70 percent said they couldn't afford it.
Source: LIMRA

52% of retirees have life insurance.
Source: Desjardins' SOM survey

In 2004, 59% of canadians had personal life insurance compared to 63% in 2003.
Source: Desjardins' SOM survey

A study by the British Columbia government found that 96% of
homeowners have fire insurance.


In 1996, the Ontario Minister responsible for auto insurance told a
group of insurance executives that 10% to 20% of Ontario drivers don't
have insurance. At the time, an estimated 800,000 drivers out of 4
million did not have proper insurance. Because no solid numbers exist,
estimates regarding the number of uninsured drivers vary. Even the
Insurance Bureau of Canada estimated that as many as 15% of Ontario
drivers were operating without insurance.

Police in Ontario estimate anywhere between eight and thirty percent
of motorists drive uninsured.

Source: In the Public Interest ? Auto Insurance in BC. By Rudy Lawrence.

Ontario drivers pay an average annual automobile insurance rate of $2,383.
Source: Consumers Association of Canada.

The insurance Bureau of Canada disagrees saying that the average is $1,279.
Average expenditure per household in 2002.
Personal insurance payments and pension contributions - $3,415
Automobile insurance premiums - $1384, automobile insurance premiums
increased 8.4 percent from December 2002 to December 2003.
Graph showing household spending on vehicle insurance premiums 1982 to 2002.
Source: Canada?s Office of Consumer Affairs.
Ontario demographics
Population, January 1, 2006 ? 12,599,364.
Annual growth rate ? 1.1%

Age distribution:
15-24 ? 13.5%
25-44 ? 30.3%
45-64 -  25.2%
Source: Government of Ontario

Ontario population projections.


2003, Homeowners insurance premiums index for Ontario  ? 176.9
Source: Consumer Price Index December 2003.

New Brunswick ? average homeowners insurance premium - $340.
Homeowner's pricing is looked at in terms of premium per $1,000 of
coverage. In 2004, New Brunswick homeowners paid, on average, $2.70 of
premium for every $1,000 in coverage. In 2005, they paid, on average,
$2.32 per $1,000 worth of coverage, a reduction of 17.7%. This is at
about 2001 levels, when the average price was $2.33 per $1,000 of
coverage. At the same time, the average size of policy has gone up.
Due to increased building costs and content replacement costs, the
average amount of coverage has gone from $133,000 in 2004 to $146,000
in 2005.

Source: Insurance Bureau of Canada

Ottawa ? average homeowner pays between $300 and $400 for home insurance.
Source: Home insurance made easy. By Kyle Rooks.

Homeowners insurance premiums.
Source: Statistics canada.

<Additional links:>

Consumer spending growth in Ontario is expected to rise 2.6 per cent
in 2006 and 2007, and rise to 3.1% in 2008.
Total Ontario households 2003 ? 4.39 million.
Source: Statistics Canada.

Property & casualty insurance in Canada.
In depth report about the industry.
Source: Department of Finance Canada.

Private households by size.>

<Search strategy:>

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<ontario "life insurance premiums" billion "in 2004">

<"average premium in ontario">

<"average homeowner" canada insurance>

<"households"  insurance average canada>

<Hope this helps.>
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