The Ontario Broker - Volume 22, Issue 2 - 19

leadership
WHAT'S NEW
BROKER MARKET SHARE IN ONTARIO
-WHERE WE LEAD
Brett Boadway-Chief Operating Officer, IBAO
U
nderstanding the
impacts of the
pandemic on our
industry is always a
topic guaranteed to
BROKER MARKET SHARE
pique member curiosity. Certainly,
the past two years could have
been times of mass disruption.
Consumers with more time on
their hands could have considered
alternative options to place their
business and financial worries could
have prompted more shopping
activity. While it's possible that
greater amounts of churn took
place, at the aggregate level, IBAO
isn't seeing dramatic changes with
respect to broker distribution market
share in Ontario. Now that the 2021
financial statements have been
published by the insurers in Ontario,
I'm pleased to discuss the broker
market share numbers from IBAO's
vantage point.
IBAO requests quarterly
market share reports from MSA
Research, assessing market share
by distribution type. It's based on
insurers' direct written premiums
in Ontario, filtered by insurer
distribution strategies. Results
should be treated as estimates, as
some insurers file their financial
results as a single company despite
distributing direct and through
brokers (CAA Insurance is an
example-this report features them
as direct only). Some insurers with
multiple distribution strategies file
their financial results separately
(Intact Insurance/Belair Direct is
an example). And not all mutual
insurers share their financial results
with MSA and therefore aren't
included in this report.
Total Direct Written Premium
62.36% 62.92% 63.99%
Q4 2019 Q4 2020 Q4 2021
Personal Auto Direct Written Premium
46.85% 46.83% 46.35%
Q4 2019 Q4 2020 Q4 2021
Commercial Auto Direct Written
Premium
90.39% 89.51% 89.02%
Q4 2019 Q4 2020 Q4 2021
Personal Property Direct Written
Premium
50.37% 50.14%
49.82%
Q4 2019 Q4 2020 Q4 2021
BROKER MARKET SHARE GROWING
YEAR OVER YEAR
When you look at specific lines of
business (Personal Auto, Commercial Auto,
Personal Property), 2021 numbers are
slightly lower than 2020. But total direct
written premium lines indicate that overall,
broker market share increased slightly
last year. This suggests that some or all of
the lines of business that aren't included
in MSA's report (Commercial Property,
Commercial Liability, Commercial Specialty
like Surety, Marine, etc.) were higher in
2021 versus 2020 to balance the average.
This makes overall broker market share
based on direct written premium in 2021
higher than the year prior.
ONTARIO BROKERS CONTINUE TO
DOMINATE COMMERCIAL LINES
DISTRIBUTION
" The insurance
industry in Ontario
is rich in competition
and complex in its
product and carrier
options. Ontario
brokers have done
a wonderful job at
delivering value
and maintaining
a foothold in
the distribution
landscape. "
VOLUME 22 | ISSUE 2
In Ontario, there are over 120 insurers
underwriting commercial business across
the province. The top 10 commercial
underwriters in Ontario represent 60% of
the total market. Cooperators is the only
insurer on that top 10 list that is not broker
distribution based. Overall, approximately
95% of all commercial insurance products
continue to be distributed through brokers,
a line that brokers have continued to hold
steady year over year.
DATA DRIVEN PLANNING FOR FUTURE
Sharing the data depicting the current
state of the broker distribution channel
in Ontario may be helpful in formulating
strategies for your own brokerage planning.
The insurance industry in Ontario is rich in
competition and complex in its product and
carrier options. Ontario brokers have done
a wonderful job at delivering value and
maintaining a foothold in the distribution
landscape. Let's keep it up and grow it
more.
19
The Ontario Broker - Volume 22, Issue 2

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