North America - Q1 2013


Insurance Risk/Reward Ratings

Table: Canada's Insurance Risk/Reward Rating
Insurance Ratings Data Score out of 10 Score out of 100
Rewards 76.20
Industry Rewards 75.00
Non-Life 82.5
Non-life premiums, 2012, US$mn65,696.69.0
Non-life premium increase, 2012-2016, US$mn5,624.47.0
Non-life penetration, 2012, %3.87.0
Measure of openness10.010.0
Life 67.5
Life premiums, 2012, US$mn26,944.97.0
Life premium increase, 2012-2016, US$mn3,283.56.0
Life penetration, 2012, %1.54.0
Measure of openness10.010.0
Country Rewards 78.0
GDP per capita, 2012, US$50,336.410.0
Active population, 2012, % of total68.97.0
Tax regime65.16.5
GDP volatility1.49.0
Financial infrastructure65.06.5
Risks 91.3
Regulatory Framework 100.0
Regulatory framework and development10.010.0
Regulatory framework and competitive landscape10.010.0
Country Risks 85.5
Long-term financial risk96.79.7
Long-term external risk56.75.7
Long-term policy continuity90.09.0
Legal framework92.19.2
Bureaucracy92.09.2
Insurance Risk/Reward Rating 80.7
Source: BMI

The Insurance Risk/Reward Ratings (RRRs) take into account objective measures of the current state and long-term potential of both the non-life and the life segments. It also takes into account an assessment of the openness of each segment to new entrants and economic conditions. Collectively, these measures enable an objective assessment of the limits to potential returns across all countries and over a period of time. The ratings also incorporate an objective assessment of the risks to the realisation of returns. The risk assessment is based on BMI's Country Risk Rating. It embodies a subjective assessment of the impact of the regulatory regime on the development and the competitive landscape of the insurance sector.

Table: Developed States Insurance Risk/Reward Ratings

Rewards

Risks

Overall rating
Industry Rewards - Non-life - Life Country Rewards Rewards Regulatory Framework Country Risks Risks Rating Rank
UK93.892.595.080.588.4100.078.687.287.51
US92.595.090.077.386.4100.079.587.786.82
Netherlands75.090.060.079.076.6100.085.791.484.23
France77.582.572.578.377.890.077.882.782.94
Bermuda86.395.077.564.077.495.072.781.680.85=
Germany78.890.067.576.878.090.085.687.380.85=
Canada 75.0 82.5 67.5 78.0 76.2 100.0 85.5 91.3 80.7 7
Switzerland68.870.067.587.476.290.090.290.179.38
Italy68.870.067.567.568.390.070.178.177.09
Spain66.375.057.570.267.890.073.179.974.610
Australia57.557.557.563.159.790.081.885.172.111
New Zealand43.847.540.082.759.390.087.588.567.012
Japan55.057.552.571.961.855.084.372.664.413
Scores out of 100, with 100 the best. Source: BMI
This article is tagged to:
Sector: Insurance
Geography: North America, North America, Canada, United States, North America, North America

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