Jamie Lyons, president, incoming CEO, Westland Insurance Group
Adapting and responding to unsettled economic, market and social conditions will be the most important issue facing the P&C industry next year.
On the demand side, while there is a heightened appreciation of risk, the rising costs of living and doing business mean many clients will not be able to pay more than they would otherwise for insurance. On the supply side, although carrier capacity and pricing trends are improving, inflation and changing weather patterns present very real challenges, in addition to the top-down impact of a tougher reinsurance environment.
Market conditions should continue to ease in Canada. However, brokers and carriers alike will need to manage conversations, expectations and negotiations even more skillfully, sensitively and in such a way that value propositions are understood and maximized. Broker advice, advocacy and client education are more important than ever. The importance of data insights and risk mitigation will accelerate. Across the value chain, look for a continued flight to quality products, solutions and partnerships.
The coming year will be pivotal for the industry. Despite the rising costs of capital, increasing economic headwinds and market uncertainty, companies building thoughtfully for the future will seize the opportunity to make outsized investments in business transformation, technology, data, people and processes. Consolidation will continue, since scale and relevance enable and justify such investments.
Great companies will continue to reimagine and redefine their purpose, as well as effectively communicate their core identity to clients, employees, communities and partners.