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Monthly Archives: March 2020

Are your commercial clients budgeting for a hard market?

Since Canadian Underwriter first raised the issue of commercial insurance rate increases at the Top Broker Summit last November, experts in the field have been giving their views on the main challenges ahead for the industry.

Albert Benmichol, the CEO of Axis Capital Holdings Ltd., expects the hard market to persist. During an earnings call this past July he stated that “even with the increases that we have seen in the last two years, many lines of business are still not at acceptable pricing.”

At the Top Broker Summit, panelists were asked when they believe the hard market will end. Carol Jardine, president of Canadian property and casualty operations at Wawanesa Mutual Insurance Company, responded “unfortunately for customers I think it’s got a long run.”

Experts agree that the key to success in 2020 will be discussing and understanding the client’s perspective, while still getting the rate they need for their shareholders.


Cyber leads global business risks for the first time

In the digital era, corporate data has become a key competitive asset. As a result, cybersecurity threats pose new global business risks.

For the first time ever, the Allianz Global Corporate & Specialty annual survey on global business risks ranked cyber incidents as the most important business risk in the world. Business interruption and changes in legislation and regulation ranked second and third, respectively.

Seven years ago, cyber ranked 15th with just 6% of responses, but today cyber incidents have become a major expense for businesses, resulting in costly lawsuits and litigation.

Climate change has also risen to its highest-ever position on the Allianz Risk Barometer. This is the result of concerns about increasing physical losses caused by rising seas, droughts, storms and flooding.