Insurable Interest Canadian Insurance Blog

Exposure growth and inflation continue to drive increasing losses London, UK (Sept. 15, 2023) – The global modeled insured average annual loss from natural catastrophes is $133 billion, a new high captured in the latest analysis using Verisk’s extreme event solutions models. Not only should the insurance industry be prepared to experience total insured losses from natural catastrophes well in excess of $100 billion every year, but annual losses greater than $200 billion are also plausible. These values are up significantly over the decade, according to the 2023 Global Modeled Catastrophe Losses Report published by Verisk. “The growth in exposure values, driven primarily by continued construction in high-hazard areas, and rising replacement costs – largely due to inflation – are the most significant factors responsible for increasing catastrophe losses,” said Bill Churney, president of Verisk extreme event solutions. “The other significant factor is the impact of climate change, which is often cited as the primary reason for the increase in losses. But, while this plays a role, year-over-year growth of exposure and rising replacement values have a far greater short-term impact.” No longer just hurricanes and earthquakes, thunderstorms responsible for 70 percent of insured losses Losses from the hazards beyond...

Le Fonds de solidarité FTQ invests to support the next generation of this well-established industry player Montreal, QC (Sept. 15, 2023) — FORT and Gaudreau are pleased to announce their merger, establishing themselves as one of the largest independent brokerage firms in Quebec. The new entity, which will operate under the name of Fort Insurance & Group Benefits, combines a premium volume of $200 million. It solidifies its position as an independent leader in the industry with a vision for nationwide growth and service excellence. This strategic alliance, now led by CEO Vincent Gaudreau, places FORT in the top 10 damage insurance firms in Quebec. Stephan Bernatchez, who will assume the role of Chairman of the Board, expresses confidence in entrusting his team to a leader like Gaudreau: “This union naturally came together, guided by our two human-oriented DNA,” stated the former IBAC President. “Vincent will successfully carry forward our nearly century-old enterprise, enhancing the client experience while maintaining our independence.” The merged company now counts 220 employees, including 17 employee shareholders, spread across 3 offices: Westmount, St-Michel, and Quebec City. Bringing the two brokerages together not only magnifies the team’s expertise but also enables the provision of unparalleled customer...

Annual list of 100 of the world’s most innovative InsurTech companies, selected by a panel of industry experts and analysts San Francisco, CA (Sept. 20, 2023) — As InsurTech continues to become vital for the success of insurance companies, specialist research firm FinTech Global has released the sixth annual edition of its InsurTech100 list. This revered ranking celebrates the 100 ground-breaking technology companies that are helping solve the insurance industry’s most daunting challenges. A panel of analysts and seasoned industry specialists sifted through a comprehensive list of over 1,900 contenders, which had been presented by FinTech Global. The finalists of the InsurTech100 were picked based on their inventive technological applications either to solve a major industry challenge or to bolster efficiency throughout the insurance value chain. As the insurance sector pursues digitalisation strategies that keep them in line with customer demands, it has created a highly competitive market for InsurTech solutions. In fact, experts predict the sector is set to soar at a CAGR of 32.7%, estimating its worth to be $159bn by 2030. The InsurTech100 list helps decision makers identify the leaders in the market. Speaking on the latest list, FinTech Global director Richard Sachar said, “The widespread availability...

Cyber Claims Report: Mid-year update reveals overall claims frequency increased 12% in the first half of 2023, driven by spikes in ransomware and funds transfer fraud San Francisco, CA (Sept. 20, 2023) — Coalition, the world’s first Active Insurance provider designed to prevent digital risk before it strikes, has released its 2023 Cyber Claims Report: Mid-year Update, which details the evolution of cyber trends during the first half of 2023. In the face of surging attacks, Coalition’s claims data showed a 12% increase in cyber claims over the first six months of the year, driven by the notable spikes in ransomware and funds transfer fraud (FTF). The Mid-year Update found that both claims frequency and severity rose for businesses in early 2023 across all revenue bands. Companies with over $100 million in revenue saw the largest increase (20%) in the number of claims as well as more substantial losses from attacks – with a 72% increase in claims severity from 2H 2022. “The cyber threat landscape has become more volatile, and, as a result, we’ve seen claims become more severe and more common than ever,” said Chris Hendricks, Head of Coalition Incident Response. “To help prevent these costly and disruptive...