Insurable Interest Canadian Insurance Blog

2024 was a loss-heavy year for the insurance market, with natural disasters causing US$140bn in insured losses; since 1980, only two years have been more expensive Weather catastrophes were dominant, with powerful hurricanes, severe thunderstorms and floods driving the losses 2024 will replace 2023 as the hottest year to date, with temperatures around 1.5°C higher than in the pre-industrial era Morristown, NJ (May 1, 2025) – Worldwide, natural disasters caused losses of US$ 320bn in 2024 (2023, adjusted for inflation: US$ 268bn), of which around US$ 140bn (US$ 106bn) were insured. The overall losses and, even more so, the insured losses were considerably higher than the inflation-adjusted averages of the past ten and 30 years (total losses: US$ 236/181bn; insured losses: US$ 94/61bn). In terms of insured losses, it was the third most expensive year; in terms of total losses, 2024 ranks fifth on the cost scale since 1980. One record-breaking high after another – the consequences are devastating. The destructive forces of climate change are becoming increasingly evident, as backed up by science. Societies need to prepare for more severe weather catastrophes. Accordingly, Munich Re is expanding and adapting its risk models to address these developments. This allows us...

Toronto, ON (Apr. 29, 2025) – CSIO is pleased to announce that Northbridge Insurance has attained Certification for CSIO’s JavaScript Object Notation (JSON) Application Programming Interface (API) Standards. Northbridge was awarded this Certification for implementing JSON API Data Standards for First Notice of Loss (FNOL) use cases. These Standards are published by CSIO’s INNOTECH API Implementation Working Groups to facilitate seamless integration for insurers and vendors. JSON enables real-time data exchange between insurer systems and broker management systems (BMS). As a result, brokers receive data directly in their BMS, rather than logging into portals or contacting insurers for client information. BMS vendors that deploy JSON API Data Standards for FNOL APIs into production enable brokers to instantly set up FNOL claims with Northbridge. “We are proud to provide proactive and responsive service that ensures our valued broker partners are able to instantly send claims information to customers through their BMS,” said Chris Harness, Chief Information Officer at Northbridge Insurance. “This Certification validates our use of Data Standards to help brokers respond quickly when policyholders report a claim.” “Northbridge’s latest CSIO Certification reflects their commitment to Standards excellence, enabling brokers to conduct business with speed and efficiency,” said Kathryn Sinclair, Interim...

Toronto, ON (Apr. 17, 2025) – Long-term small business confidence gained 9.3 index points in April, reaching 34.8, up from the record low level of 25.0 points recorded in March, finds the latest Canadian Federation of Independent Business (CFIB)’s Monthly Business Barometer® survey. “The long-term outlook has slightly recovered, but it’s still at abysmal levels. In fact, it’s only reached the March 2020 level of optimism. So, while the business sentiment trended in the right direction this month, partly due to the elimination of the federal carbon tax, small businesses are still feeling worried and uncertain about the future,” said Andreea Bourgeois, CFIB’s director of economics. “We’ve only gone from an extremely pessimistic outlook to just pessimistic.” Business owners are forecasting price increases of an average of 3.5% and plan to raise wages by an average of 2.2% over the next few months. Weak demand continues to plague over half (55%) of small firms. While hiring intentions slightly improved in April, they are still below their historical averages for this time of year, with 14% of firms looking to hire and 17% planning to lay off in the next few months. All provinces maintained their very low optimism levels. Businesses in...

Natural hazards, equipment failure and supply chain strains weigh on energy providers, lenders and investors Johnston, RI (Apr. 16, 2025) – Renewable energy projects and the global transition to green power will hinge on resilience – the ability to protect against natural hazards, equipment failure and business interruption – according to new research from commercial property insurer FM. With global demand for electricity expected to double by 2050, much is riding on the energy sector’s ability to expand and transition to wholesale production of sustainable renewable energy. The International Energy Agency (IEA) predicts the world will add more than 5,500 gigawatts of new renewable energy capacity between 2024 and 2030, almost three times the increase seen from 2017 to 2023. Yet this progress and the related climate benefits could be hindered by hail, fire, wind and engineering flaws that cause equipment to fail. As a result, renewable energy providers will need to demonstrate resilience in their projects to attract financing, secure insurance coverage against breakdowns and operate profitably, according to FM’s survey of 650 renewable energy executives and financiers. According to the survey: There’s a strong appetite to build and invest in renewable energy infrastructure. 97% of solar energy providers...