Diverse risk management strategies are key to adapting to Canada’s diverse economy

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Having spent the last few months traveling across the country to finally meet our team, our clients and our brokers in person, I have been amazed not only by the beauty of the landscape and the warmth of the people, but by the great diversity of l Canadian economy. Along with the captivating cultural experiences each province has to offer, it’s amazing to see the uniqueness of sectors and industries that all face ever-changing risks.

From the manufacturing industry of Quebec to the upper middle market of technology and services in British Columbia. From the agriculture and clean energy industries of Manitoba and Alberta to the shipping and tourism industries of Nova Scotia; Canada’s economy is as diverse as its people. And as global and local economies recover from the pandemic, C-Suites and risk managers are looking for increasingly specialized and adaptable insurance solutions.

Universal Challenges

Inflation, the talent shortage and all that these two challenges entail are at the heart of the concerns of our partners from all regions and sectors here in Canada.

After two and a half years of operating in a world of volatile logistics and rising inflation, companies are struggling to have a consistent assessment of their status with respect to supply chain, business disruptions, lead times production and shipping, etc. Our own underwriters are finding it difficult to estimate the costs of losses with the continuing evolution of changes related to inflation, covid and ongoing geopolitical conflicts.

When it comes to finding and securing human resources, everyone agrees that the competition for talent is incredible right now. Across the country, I’ve heard of companies struggling to hire for all types of positions, from construction workers to highly skilled technology professionals. Small and medium-sized businesses need to find creative ways to compete for what seems like a limited amount of demanding candidates.

Specialized solutions

As inflation and talent issues continue to evolve and impact businesses, we see these core specialty insurance coverages becoming critical:

Cyber: Cyber ​​risk remains a major concern in businesses and industries. More companies are purchasing cyber insurance for the first time and increasing their limits as they become available in the market. From cyberattacks that are making the news that we all hear about, to simple power outages that lead to data loss and negatively impact business continuity. Risk managers in businesses large and small are beginning to view cybersecurity incidents as a systematic risk.

Construction: As investment in infrastructure projects accelerates and risks posed by supply chain disruption, climate change and talent shortages continue to impact project timing; companies are looking for creative approaches to mitigate risk.

Political risk, trade credit and commercial obligations: With local and international banks and other financial institutions becoming more active, this niche coverage is gaining momentum as policyholders seek to move capital to invest overseas and protect these investments.

Cautious optimism

Despite the pressing challenges posed at all levels by inflation and the shortage of talent, my travels have highlighted the resilient nature and overall health of Canada’s entrepreneurs, investors and communities.

It’s clear to me and my team that now is the time to be in the market, making the most of our expertise and our data and analytics tools. And the way to do that is to work hand in hand with our customers and brokers to continue to evolve and adapt not only our insurance products, but also our approach to risk management. We remain optimistic about the opportunities for growth in this diverse economy and want to play an active role in helping Canadian organizations protect what matters most to them.

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