QUÉBEC AUTOMOBILE STATISTICAL PLAN Definitions

Transcription

1 QUÉBEC AUTOMOBILE STATISTICAL PLAN Definitions July 2014 N/Réf. : Groupement des assureurs automobiles acts as an authorized agency by the Autorité des marchés financiers.

2 This document presents the results of the Automobile Statistical Plan (ASP) from a general point stand. These notes will assist the reader in understanding and interpreting the exhibit. Definitions Year Indicates the year or quarter, as the case may be, for which results are provided. The results are shown on a calendar year basis. Example: 2013-Q2, results accounted for the second quarter of 2013 Written Vehicle-Years Indicates the number of vehicles insured in a given period (a year or a quarter) under an insurance policy covering the vehicle for a 12-month period. Example: If an insurance policy covers a vehicle for a six-month period, 6/12 of a written vehicle-year is recorded. 2 Earned Vehicle-Years Indicates the number of vehicles corresponding to the expired portion of the insurance policy for the period. Each insurer calculates this exposure in accordance with the earned basis used in its financial statements to determine the earned premiums. effective date is November 1 st of the current year, then 2/12 of the vehicle is recorded in the current year and 10/12 is recorded in the following year.

3 Written premiums Indicates the premiums paid or to be paid by the insured for their insurance policy issued in the period. effective date is November 1st, then the total premium is recorded in the current year. Earned Premiums Indicates the portion of the premium corresponding to the expired portion of the insurance policy for the period. Each insurer calculates the earned premium in accordance with the earned basis used in its financial statements. effective date is November 1st of the current year, then 2/12 of the premium is recorded in the current year and 10/12 is recorded in the following year. 3 Average Written Premium Indicates the written premium per written vehicle. In other words: Written premiums divided by the number of written vehicle-years. Number of Claims Indicates the number of claims, counted by coverage and kind of loss, for which an initial loss payment or external adjustment expenses have been paid in the period, or for which an initial reserve* for loss payment and/or external adjustment expenses have been established in the period. *Reserve: a reserve represents the amount potentially needed to cover a claim.

4 Incurred Loss and Loss Adjustment Expenses Indicates the loss payments and expenses related to claims settlement paid. Claim Frequency (%) Indicates the number of claims per 100 earned vehicles. In other words: Number of claims divided by the number of earned vehicleyears multiplied by 100. Claim Severity Indicates the cost of the incurred loss and loss adjustment expenses per claim. In other words : Incurred loss and loss adjustment expenses divided by the number of claims. 4 Pure Premium Indicates the amount of the incurred loss and loss adjustment expenses per earned vehicle. In other words: Incurred loss and loss adjustment expenses divided by the number of earned vehicle years. Loss Ratio (%) Indicates the ratio of the incurred and loss adjustment expenses to earned premiums. In other words: Incurred loss and loss adjustment expenses divided by earned premiums multiplied by 100.

5 Ratios at the bottom of the page (%) The ratios at the bottom of the page show, for each column where they appear, the percentage increase (decrease) of statistical results between a period of the current year and the corresponding period of the previous year. The first ratio compares the most recent quarter of the current year to the same quarter of the previous year. The other four ratios compare quarters of the current year cumulatively (the first three months, the first six months, etc.) to the corresponding period of the previous year. 5