2023-09-12 15:52:17
Canada’s property insurance industry is concerned regarding the risks associated with extreme weather events and the impact of inflation on claims costs, according to an analysis report from professional services firm Aon.
This report released on Tuesday also echoes the report published last Sunday in the Your Finances section of The Pressregarding the impact of extreme weather events and inflation of claims costs on the increase in premiums and coverage restrictions in property insurance.
“Challenges facing the property insurance market remain top of mind for insurers, primarily due to natural catastrophe concerns and reinsurance costs,” said Russell Quilley, head of commercial risk management and head of brokerage for Canada at Aon.
“Climate change concerns will weigh heavily on property insurance risk exposure, which is why insurers are equipping themselves with sophisticated risk modeling and quantification tools to better understand and manage risks. . »
760 million in claims
According to a survey carried out by the firm Aon, at the end of the second quarter of 2023 (as of June 30), Canada had recorded insured losses linked to weather catastrophes worth approximately $760 million.
For property insurance clients, Aon’s analysis report notes that they should expect “insurers to manage their portfolio performance [de contrats] through careful selection of risks, which highlights the importance of reliable and good quality information on risks for policyholders. »
Therefore, Aon warns, “customers should expect that [l’évaluation des risques] be at the center of the renewal process” of their property insurance contract.
“The property insurance market continues to be a dynamic space given persistent rate increases and careful monitoring of valuations” of insurance contracts, according to the firm Aon.
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