April 3, 2018 13:30
The ceo ofIntact Insurance, Charles Brindamour, has shared his forecasts for the year 2018 in the annual report of the company. Despite a year of 2017 more difficult, he announces that the conditions of 2018 will be more favorable.
Mr. Brindamour acknowledged that the year 2017 has been difficult for the insurance industry in canada, with a rate of return on equity of a little over 6 %. He added that corrective measures are put in place in order to tighten rates.
Inflation in the costs of claims in motor insurance of individuals is attributable to damage to property, » he says. The increase in the cost of repairs of vehicles also affects the performance of the industry. Home insurance, Mr. Brindamour stresses that the industry tailors its offer and its prices to better reflect costs associated with natural disasters.
Revenue increases for 2018
Intact expects revenue growth in a few sectors. Personal insurance, among others, Intact expects growth of about 3% to 6%.
«The market for insurance companies remains highly competitive, but we are starting to see constraints in some sectors. Therefore, the rates continue to firm, » said Mr. Brindamour. The revenue growth should be around 3% to 5% in the sector.
The United States also affected
The forecast also mentioned the expansion Intact in the United States. «Even if we have to make our entry on the american market, a number of segments, in which we are active show clear signs of rate increases. We love the turn of things. «
In 2018, the rate of return on equity of the industry is expected to remain below its long-term performance. The company maintains its target of outperformance of 500 basis points relative to the industry.
Mr. Brindamour indicated that he started the year on a good basis for recalling the importance of being client-centered. The deployment of digital and artificial intelligence, cutting-edge technology, expansion of distribution, combined with the improvement of the activities of the subscriptions are also part of the priorities Intact.