Kenney Ratio Is The ALIGNED Term of The Day
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The Kenney Ratio is a rule of thumb developed by Roger Kenney that sets a 2-to-1 target ratio of gross premiums written to policyholder surplus. The Kenney Ratio applies to insurers that write strictly property insurance. For companies that also write liability insurance, the Kenney Ratio is 3 to 1. Such ratios provide a measure of an insurer’s financial stability and solvency.
P&C Insurance Company Financial Regulation in Canada
“The property and casualty (P&C) insurance industry in Canada provides coverage for all risks other than life, including automobile, property and liability insurance. Federal supervision encompasses insurers incorporated or continued under the Insurance Companies Act as well as foreign insurers who have been granted an order to insure in Canada risks.
In general, OSFI conducts prudential reviews of the federally regulated insurers to determine their financial soundness, while the provinces regulate the licensing of insurers operating within their jurisdictions as well as the marketing of insurance products. The industry-funded, non-profit Property and Casualty Insurance Compensation Corporation (PACICC) will respond to claims of policyholders under most policies issued by P&C insurers, in the event of an insolvency of one of its members.” Visit OSFI to learn more.
The Kenney Ratio and other ratios that measure the financial stability of an insurer are important when selecting an insurance company.
An ALIGNED Advocate can provide expert guidance about insurance and risk management best practices for your organization. Talk to one of our advocates today about how we can help you secure the best products, services and insurance solutions for your business.
ALIGNED specializes in delivering insurance and risk management solutions exclusively to Canadian businesses. Through our 18 points of differentiation and expertise, we deliver unmatched value to our growing portfolio of clients from all industries that range from small to large organizations. We offer all of the following management liability products:
- Board Insurance / Directors and Officers (D&O) Insurance
- Employment Practices Liability (EPL) Insurance
- Fiduciary Liability Insurance
- Property Insurance – including Business Interruption & Extra Expense
- Machinery Breakdown / Boiler & Machinery Insurance
- Course of Construction (COC)
- Wrap-up Liability Insurance
- Commercial General Liability / CGL Insurance
- Pollution Liability Insurance
- Commercial Automobile & Fleet Insurance
- Umbrella Liability Insurance
- Cyber, Hacking & Privacy Liability Insurance
- Crime / Fidelity / Employee Theft Insurance
- Professional Liability / Errors & Omissions (E&O) Insurance
- Kidnap & Ransom Insurance
- Representations & Warranty Insurance
- Trade Credit
- Surety & Bonding
|ALIGNED Across Canada 100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.|