PACICC Research Report Launch
– How Big is Too Big? The Tipping Point to Systemic Failure
by Grant Kelly
May 12, 2021 (1:00-2:00 p.m. EDT)
You are invited to join PACICC President & CEO Alister Campbell and Chief Economist Grant Kelly for the release of PACICC’s latest research report… “How Big is Too Big? The Tipping Point for Systemic Failure.” The report updates a PACICC P&C Industry Model that established the threshold above which some form of catastrophic event (e.g. earthquake, grid failure, asteroid strike) would trigger the systemic failure of Canada’s property & casualty (P&C) insurance industry – and identified a precise “tipping point”.
PACICC is the resolution authority for Canada’s P&C insurance industry, with a mission to assist Canadian policyholders in the unlikely event that their insurance company becomes insolvent and is closed by regulators. Both previous PACICC research studies identified a catastrophic damage threshold above which Canada’s P&C insurance system would be exposed to systemic failure. Despite strong prudential regulation and the best efforts of highly capitalized private insurers to prepare for a very large catastrophic event (such as a major earthquake), there is a clear and definite limit to the capacity of Canada’s private insurance system to respond. The report puts forward a compelling case for the implementation of a federal backstop mechanism to protect Canadians from the impact of a severe “tail-risk” event.
Registration information for the event has been sent to industry stakeholders. If you were not contacted directly and would like to attend this virtual event, please contact: