Consolidation in the Property and Casualty Insurance Industry During the 1990s
During the last decade, the Canadian property and casualty insurance industry underwent considerable consolidation, which has resulted in a smaller number of non-government companies serving a larger share of the industry's market. After describing the industry's role, characteristics, financial performance, and importance to the overall economy, this article examines motivations for and evidence of consolidation in the property and casualty insurance industry between 1988 and early 2001. Findings include moderate financial growth overall despite a steady decrease in the number of licensed companies in the industry. The overall decrease in the number of companies is due more to market exits than mergers or amalgamations. Nevertheless, ownership changes have also increased the concentration of market share under the largest groups of affiliated insurance companies.