Insurable Interest Canadian Insurance Blog

Two major private equity buyouts lifted H1’24 total deal value, but broader deal-making activity was still relatively weak, KPMG report shows Toronto, ON (Aug. 15, 2024) – Two large private equity buyouts propelled the total value of investments in Canadian fintechs to a new high in the first six months of the year amidst a broader persistent slump in Canadian and global investment, according to KPMG International’s H1’24 Pulse of Fintech report. A record US$7.8 billion was invested in Canadian fintechs in the first six months of 2024, up more than seven-fold from last year’s full-year total of US$1.1 billion. Private equity investments into two Montréal-based fintechs – Nuvei Corp. and Plusgrade Inc. – accounted for as much as 94 per cent of the total value invested in Canada – and were also among the biggest five deals globally. “These two Canadian deals – among the biggest in the world – reflect the growing fintech ecosystem in Montréal and Quebec more broadly, where the startup scene is thriving thanks to support from institutional investors, and world-class universities are providing a steady stream of talent,” says Georges Pigeon, a partner in KPMG in Canada’s deal advisory practice in Montréal who specializes...

New flood risk study reveals correlation with planned infrastructure projects Toronto, ON (Aug. 28, 2024) – Flooding has become a growing problem in Canada. According to the Insurance Bureau of Canada (IBC), severe weather in 2023 caused over $3.1 billion in insured damage nationwide. This year’s July flash floods in Toronto and southern Ontario alone caused over $940 million in insured damage. These extreme weather events reflect the increasing frequency and intensity of climate-related disasters in Canada, putting significant strain on insurers and adjusters alike. Canadian Climate Institute claims that a whopping 10% of households – 1.8 million – are currently at a very high risk of flooding. Moreover, it seems increasingly likely that the flooding trends across the country will not get any better in the next few decades. According to the most recent study from the Journal of Hydrology on flooding projections in Canada all the way into 2080, an increase in the probability of summer flooding was observed, especially in the province of Ontario. In light of this alarming trend, our team at MyChoice, a leading insurance comparison platform in Canada, has conducted a study to identify the areas in Ontario most vulnerable to flooding. Our research...

Alberta’s insurers on the ground helping residents beginning the recovery process Toronto, ON (Aug. 5, 2023) – This summer’s devastating wildfire in the Municipality of Jasper and Jasper National Park resulted in over $880 million in insured damage, according to initial estimates from Catastrophe Indices and Quantification Inc. (CatIQ). The sudden and intense wildfire, which began on July 22, damaged or destroyed a third of the community, making it the second most expensive wildfire in Alberta’s history in insured losses. “For thousands of residents in Jasper, this has been a time of hardship and heartbreak — homes and businesses lost, lives uprooted and an iconic community forever changed,” said Aaron Sutherland, Vice-President, Pacific and Western, Insurance Bureau of Canada (IBC). “Alberta’s insurers have been on the ground assisting customers with financial support and beginning the recovery process. Rebuilding will take time, and our industry will support the community every step of the way.” Given Jasper’s unique location in a federal park, multiple levels of government are overseeing recovery efforts. IBC is calling on all orders of government to adopt an expedited and coordinated approach to decision-making to ensure reconstruction efforts can begin as quickly as possible. “In an era in...

Insurity survey finds that consumers prioritize comprehensive coverage and technological capabilities over cost, and are willing to switch providers or pay higher premiums for better claims experiences during severe weather events Hartford, CT (Aug. 22, 2024) – Insurity, the leading provider of cloud-based software and analytics for insurance carriers, brokers, and MGAs, has announced findings from its 2024 Severe Weather Consumer Pulse Survey, revealing deeper insights into consumer opinions on how severe weather events influence their insurance coverage decisions. Insurity’s survey uncovered a shift in consumer priorities, emphasizing that cost is no longer the greatest driver for policy selection. The survey highlights the value consumers place on the technology their insurance providers use to offer a better experience during severe weather events. Despite 48% of Americans expressing confidence that their current insurance adequately prepares them for the potential financial impacts of severe weather events, 36% of Americans would consider switching to an insurance provider that offers more comprehensive coverage for severe weather events, even if it means paying a higher premium. Moreover, 52% of respondents indicated they were more likely to buy a policy from an insurance provider that actively invests in new technology to improve the insurance claims process...