Catastrophic events continue to pressure the Canadian insurance marketplace: Aon
Aon’s Fall 2024 Update
Toronto, ON (Oct. 7, 2024) – Aon plc, a leading global professional services firm, has released its Fall 2024 Canadian Insurance Market Update. While a competitive atmosphere continues as insurers strive for market share, the significant catastrophe activity Canada has faced in 2024, along with other factors discussed in the report, may lead to a quicker-than-anticipated shift back to a more conservative stance characterized by stricter underwriting practices and a focused risk selection process.
“The complexity and rapidly evolving nature of the Canadian Property and Casualty (P&C) insurance industry makes it extremely difficult to forecast future state. While historical market challenges like inflation and interest rate volatility are stabilizing and easing market conditions, catastrophic events continue to pressure the Canadian marketplace,” said Russell Quilley, Head of Commercial Risk and Chief Broking Officer for Canada at Aon. “As of September, 2024 is already the costliest year on record for insured catastrophe losses in Canada with estimated total losses in excess of $7.6 billion.”
Other key findings include:
- Increased competition has moderately eased market conditions, but auto theft and increasing cost of repairs continues to erode insurer profits in the auto segment.
- Remediations to portfolios resulted in overall profitable underwriting results after having reached healthy pricing levels and focusing on risk selection, as evidenced in the Q2 2024 industry results.
- Reinsurance market conditions have stabilized in 2024 with a selective appetite for growth and more flexibility shown by reinsurers – but Catastrophe activity could cause challenges heading into 2025 renewal negotiations.
- The casualty market remains moderately competitive with a two-tiered market emerging as insurers have started to define themselves as either primary or excess players.
Read the full report here.
About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses. For more information, visit www.aon.com.
SOURCE: Aon plc
Tags: Aon, Catastrophe, market dynamics, Natural Catastrophes