Despite huge insured losses in 2017 an ongoing abundance of capital means the industry’s capacity to meet and operate profitably in the face of natural catastrophe is not only stable, but growing, according to Rohan Dixon, Executive Vice-President and Chief Broking Officer at Aon, Canada.
In its latest market report, Aon states that the Canadian insurance marketplace is becoming increasingly globalised as this sustained abundance of insurer capital leads to competitive programs and innovation.
As a result, underwriters are increasingly turning to data and analytics to identify and develop new solutions to bridge this capital with new and emerging risks.
Furthermore, Canadian insurers looking to increase written premiums are moving into new product lines as the soft market continues to provide elevated purchasing power; allowing for increases to existing limits at competitive rates, according to a market report by Aon.
Dixon believes the the industry must continue to look for such innovations and efficiencies, both in risk management and in transfer solutions.
“New industries, such as Drones or Cannabis, are creating challenges for some insurers however others are taking advantage of the pace and getting a foot hold before the rest of the market catches up,” added Dixon. “This is creating new premium and risk control opportunities for insurers.”