Canadian Motor Claims Accelerate

Contributor: Angela Chung, Senior Underwriter P&C Canada, PartnerRe; Grace Lin, Chief P&C Pricing Actuary Canada, PartnerRe
Date: 2/1/2010
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.
Tags: Motor, U.S., Pricing & models

Preparing for Higher Limits

Contributor: Emmanuel Becache, Senior P&C Underwriter, PartnerRe; Lea Nefussi, P&C Underwriter, PartnerRe.
Date: 10/1/2007
The current minimum statutory Motor insurance limits in the EU were set in 1984 by the 2nd EU Motor Insurance Directive (84/5/CEE). In the meantime, claims inflation and the wide range of minimum limits adopted in EU countries, have prompted a revision of the minimum limits, as outlined in the 5th EU Motor Insurance Directive (2005/14/CE). The extent to which the 5th Directive impacts a specific insurance market will depend on the current limits offered in that market: ranging from no or little impact in countries that offer unlimited coverage for bodily injury, to potentially significant impact in countries that have remained with the former minimum limits. For example, the minimum limit for combined bodily injury and property damage per event will be multiplied ten-fold, from € 600,000 to € 6 million for countries that choose the second option of the directive.
Tags: Europe, Motor, Regulation, Agriculture