He shared some statistics that highlight âhow difficult things have beenâ in the commercial insurance market.
âThe combined corporate liability ratio in 2020 was 113%. Specific lines such as excess liability had combined ratios greater than 100% – sometimes much greater, âhe said. “CGL had reported almost 115% combined at various times, and I’m sure there are other numbers that are much worse, but it shows the problem we had.”
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How long the hard market will last is a puzzle. Blacksmith was active in the industry during the last tough market in the early 2000s, but he said “none of us can predict” how long the current conditions will last. Some reports indicate that the price increases are not as high as they were in 2000 and that the market may stabilize in some areas, but the challenges are expected to persist for some time, especially in the hardest hit sectors like trucking. , construction, commercial property and hospitality.
âAt the very beginning of this [hard] market, the strata market has sort of become zero point for us, âForgeron noted. âHe faced considerable challenges. But there have been encouraging signs that this market is stabilizing thanks to the collective efforts of our industry, condominium and strata association stakeholders, and governments to address the underlying risk profile and claims issues. . We’re not out of the woods yet. Obviously, there is still a lot of work to be done, but it’s gratifying to see that we are making progress.
The IBC promotes and lobbies for the insurance industry to governments and the general public, and as the industry’s national trade association, it is a fundamental advocate for multi-stakeholder collaboration.
In February 2020, the IBC launched a National Commercial Insurance Working Group to assess the effects of the tightening global commercial insurance market on Canadian businesses and consumers. The working group is made up of insurers, brokers, trade groups and other key stakeholders. Notable representatives include the Condominium Institute of Canada, the Canadian Trucking Alliance, the Canadian Federation of Independent Business, the Insurance Brokers Association of Canada, and the Risk and Insurance Management Society. Together, they released a series of recommendations aimed at improving the availability and affordability of commercial insurance in Canada in the short, medium and long term.
David Yeatman, Senior Vice-President, Distribution and Communications at Chubb Canada, is the Chairman of IBC’s Standing Committee on Commercial Insurance (CLSC), whose members have been heavily involved in the National Commercial Insurance Working Group.
“[Since the start of the pandemic] The CLSC began to hold monthly meetings, which we continued this year, given the large number of issues and challenges that require the attention of the committee, âsaid Yeatman. âOver the past year, the committee has achieved many impressive accomplishments and continues to inform IBC’s advocacy and communications strategies.
âCLSC members participated in the Commercial Insurance Working Group which worked with industry stakeholders to find solutions to mitigate insurance challenges. The committee helped inform the recommendations that were included in the task force’s final report released in June of this year. The recommendations focus on reforms in areas such as condominium / strata, market, trucking, hospitality and non-profit organizations.
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Going forward, the IBC aims to continue to strengthen the relationships it has established with industry associations, NGOs and other business representatives through the Commercial Insurance Working Group and other industry supports, like its business insurance hotline, which it rolled out during the COVID era to help small businesses mitigate their risk profiles and grow stronger in the long run. term.
“We will continue to provide direct assistance through this hotline and these risk managers, and we will advance the policy recommendations of our working group where governments play a key role in implementation,” said Black-smith.
Likewise, the CLSC team will continue to respond to the challenges of the insurance sector, underlined Yeatman, by participating in the BAC’s Business Insurance and Co-Ownership action teams. He added, âWe also approved the development of a Trucking Task Force to address commercial insurance issues in the sector and help IBC advocate for reforms as well as long-term care home sector. The committee’s invaluable insight and expertise have shaped IBC’s business strategy and initiatives.
All of this meaningful collaboration is essential to pull the industry through the tough commercial market. Blacksmith commented, âThis is not the kind of challenge that is going to be solved overnight by a player or by an idea. We have to work in partnership and we have to be patient. As an industry, we have to be the leaders and we have to be seen as the leaders. As an elected official told me at the start of the pandemic: “If you are not seen as part of the solution, you will be seen as part of the problem.” We need to make sure that everyone, from our clients to our regulators to our elected officials all understands that we are doing what we can to make a positive difference during a very difficult time. “