HISTORY OF THE CANADIAN INSURANCE SECTOR

Though the history of insurance in trade and commerce can be traced back to the fourth century BC, in Canada, insurance contracts were first written through agencies of a number of British companies. The first fire insurance policies were offered in the country in 1809 while the first life insurance policies were offered in 1847 (Introduction to Canadian Financial System, p.225). In general, the primary purpose of the Canadian insurance industry is relatively straightforward. “Providing peace of mind to its policyholders is the primary purpose of Canada’s insurance industry” (Statistics

The Canadian insurance industry is segmented into two sectors. These include life insurance as well as general insurance, which is also known as property and casualty (P&C) insurance (Statistics Canada,http://142.206.72.67/03/03e /03e_001f_e.htm ). “Life insurance protects beneficiaries from the untimely death of an insured person by providing payment to beneficiaries when the insured person dies” (Introduction to Canadian Financial System, p.223). On the other hand, general insurance covers risks and losses associated with material goods and various legal issues. “General policies span a wide range of risks, including natural disasters (e.g., earthquakes and floods), unpredictable losses (e.g., automobile, marine, airplanes property), negligence and legal liability” (Introduction to Canadian Financial System, p. 223).

The top three property and casualty companies in terms of assets are ING Canada ($7.2 billion), Aviva Canada Inc. ($5.8 billion) as well as Royal & Sun Alliance ($4.0 billion). In terms of profits before tax, the top three companies are Factory Mutual Insurance ($74.4 million), Chubb Insurance of Canada ($73.5 million) and Aviva ($73.3 million) (www.cdnins.com/summary.htm). For net premiums written, the top three companies are ING ($2.0 billion), CGU Group Canada Limited ($1.8 billion) and Co-operators Group ($1.3 billion)

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