Insurable Interest Canadian Insurance Blog

In 2025, secondary perils† – among them wildfires, severe convective storms and floods – accounted for a record 92% of total global natural catastrophe insured losses of USD 107 billion Population growth, rising asset values and elevated reconstruction costs among factors increasing exposure and insured losses over time Swiss Re’s modelling shows that in a peak-loss scenario, insured losses could reach USD 320 billion in 2026, underscoring the continued need for well-designed adaptation and risk mitigation measures Zurich, Switzerland (Mar. 19, 2026) – Secondary perils dominated natural catastrophe headlines in 2025. The LA wildfires, for example, generated record-breaking combined insured losses of around USD 40 billion. Losses from severe convective storms (SCS) remained elevated with USD 51 billion of losses. 2025 was also notable due to the absence of a major US hurricane landfall. With long-term global insurance losses from natural catastrophes continuing to follow the 5–7% annual growth rate, sustained adaptation and risk mitigation are instrumental to maintain long-term insurability and reduce protection gaps. Balz Grollimund, Head Catastrophe Perils, said: “The below-trend natural catastrophe losses seen in 2025 are the result of favourable variability rather than any easing of underlying risk. If losses return to normal long-term levels, they would total USD 148 billion...

Boston, MA (Mar. 23, 2026) — InnSure, a non-profit reimagining climate change-related insurance risk financing, is pleased to announce the nine companies comprising the second cohort of Creation Labs: 7Analytics, Aillium, Delos, EVSTAR, Fast Hazard, LocationHealth, Orbital Sentry, Tenax ai, and XyloPlan. Creation Labs is InnSure’s flagship launch and growth platform accelerating the development and deployment of new climate risk management products that address critical market gaps in U.S. communities. Companies, entrepreneurs, and innovators participating in Creation Labs gain access to resources that help them deploy and scale their products in climate-challenged markets that need affordable and creative insurance solutions. “The innovative companies joining us for this next cohort represent exactly what Creation Labs is about,” said InnSure’s Managing Director Chris Lowell. “They each bring unique, forward-thinking climate solutions to the table, and we’re excited to help them reach the communities and ecosystems that can benefit most from their products.” The Creation Labs cohort members are: 7Analytics: A flood analytics specialist empowering insurers and businesses to adapt to the climate challenges of today. By combining ultra-high geospatial resolution with AI/ML techniques and weather intel, they provide both property-level flood risk data and event impact forecasting several days ahead. Aillium: Aillium...

New York, NY (Feb. 26, 2026) – CoverGo has deployed its Intelligent Document Processing (IDP) AI Agent for Generali Hong Kong, supporting the insurer in automating its health insurance claims operations, accelerating processing times while enhancing accuracy and customer experience. The deployment supports Generali Hong Kong’s ongoing efforts to accelerate claims handling and streamline operations through AI-enabled solutions. CoverGo’s IDP AI Agent automatically processes unstructured documents – including claim forms, medical reports, invoices, and receipts – transforming them into structured, decision-ready data in real time. Combined with CoverGo’s wider claims capabilities, insurers can streamline and automate the whole claims process. By embedding AI directly into the claims workflow, Generali Hong Kong has reduced manual data entry, minimized delays, and improved overall customer experience. The IDP AI Agent extracts relevant information, identifies and maps medical diagnosis codes, including ICD and benefit codes, along with supporting claim details. “At Generali Hong Kong, we continuously explore technology that can help us improve the overall claims experience for our customers and enhance operational efficiency,” said Cecilia Chang, CEO of Generali Hong Kong. “The deployment of this solution supports our ongoing efforts to streamline claims handling through AI-enabled capabilities, reflecting our focus on driving operational...

Toronto, ON (Mar. 16, 2026) – As cross-border travel, seasonal residency, and property ownership in Mexico continue to rise among Canadians, brokers are seeing renewed attention on the insurance implications of operating vehicles and holding assets outside Canada. Industry professionals note that one of the most common misconceptions among travellers and property owners is the assumption that Canadian insurance policies extend seamlessly into Mexico. In reality, Mexican law requires certain coverages particularly auto liability to be issued by licensed Mexican insurers, creating a distinct coverage gap for individuals and businesses with exposure south of the border. In response to these evolving needs, CHES Special Risk has confirmed its capability to support brokers with access to MexiPass, a specialized Mexican insurance program designed for foreign individuals and businesses requiring locally issued coverage that aligns with North American insurance expectations/ The capability allows brokers to address a range of cross‑border scenarios, including Canadian‑registered vehicles travelling or garaged in Mexico, foreign‑owned residential properties, and commercial operations with Mexican exposures. By facilitating access to Mexican‑issued policies, brokers are better positioned to help clients remain compliant with local regulations while gaining clarity around claims handling and coverage intent. “Cross‑border risks don’t always fit neatly into...

HSB AI Liability Insurance Fills Coverage Gaps and Exclusions AI insurance protects businesses from AI lawsuits Includes bodily injury, property damage, advertising injury coverage HSB survey shows 91 percent of companies plan to use AI AI liability protection helps add certainty to an AI-driven world Toronto, ON (Mar. 18, 2026) – Specialty insurer HSB has introduced a new artificial intelligence (AI) liability insurance coverage that protects businesses from lawsuits resulting from the use of AI technologies. Designed for small and medium-sized companies, HSB AI Liability Insurance can pay for AI-related losses that some General Liability policies exclude, including bodily injury, property damage, and advertising injury for claims stemming from AI-generated advertising, marketing, blogs, and social media. “All types of businesses are using AI to do things more quickly and efficiently” said Timothy Zeilman, global head of product ownership for HSB, part of Munich Re Group. “At the same time, the AI transformation brings new legal and financial exposures. Business owners may wonder, am I protected? AI insurance helps remove that uncertainty by filling the gaps in coverage, so businesses can stay ahead of emerging risks.” Small Businesses Embrace AI, but Worry About the Risks Increasingly, smaller businesses are relying on...