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Property and casualty insurance

In addition to life insurance companies, there are many companies in Canada that offer property and casualty (P&C) insurance. Whereas life insurance covers risks associated with human mortality and morbidity, P&C insurance is focused on risks that result in loss to property and possessions. Some examples of this include: 

  • auto insurance, which covers losses to individuals and property due to accidents and other unforeseen events;
  • home/property insurance, which covers damages to residences and property resulting from severe weather, fire, theft and other perils as well as liability to third parties from the action of the insured;
  • catastrophe insurance, which covers the occurrence of environmental or human-made disasters (e.g., floods, earthquakes, terrorist attacks, hurricanes);
  • commercial insurance, which covers similar risks as home insurance and may also include coverages such as business interruption insurance;
  • marine insurance, which covers losses to shipping vehicles and their cargo;
  • professional liability insurance, which covers losses to a professional’s clients arising from errors or omissions; and
  • cyber insurance, which covers businesses from internet-based risks and risks relating to information technology infrastructure and activities.

Because the environment we live in is ever-changing, actuaries are heavily involved in reflecting the fast-changing dynamic in the underwriting and ratemaking functions and play prominent roles in building financial strengths and stability in the reserving and financial reporting functions. Some emerging areas for actuaries in P&C to apply their skills include:

  • claims analysis and data science;
  • developing new insurance products such as cyber and telematics;
  • pricing risks associated with a changing climate;
  • enterprise risk management; and
  • dialogue with regulators on the promotion of Canadian financial stability and fair insurance product offerings.

Curious about how actuaries help determine the insurance for your home, car or business? You may want to check out our related resources.