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Executive Outlook 2020 | Nick Creatura, CNA Canada


December 17, 2019   by Canadian Underwriter


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Nick Creatura, President, CEO, CNA Canada

Within commercial insurance, 2020 is expected to herald a continuation of the current transitional market as industry participants seek out a new equilibrium. Shifts in carrier appetites, more intentional deployment of capacity, and increased differentiation in rates and terms will continue, spurred by a tightening retrocessional reinsurance market and continued sub-target returns for many insurers and reinsurers.

This dynamic is playing out over the backdrop of an increasingly interconnected world wherein few organizations are insulated from events and developments in other parts of the world, be they political, economic or technological in nature.

Tangible and intangible risks continue to proliferate, and the inter-connectivity of risks is creating a daunting new risk landscape. For example, an increase in technology dependency is linked to cyberattacks, data fraud, and critical infrastructure breakdown.

Heightened cyber and technological threats have been identified as a major potential blind spot. It likely that we have not yet fully comprehended the vulnerability of networked societies.

If we are to navigate the new tangled web of interconnected risks (both tangible and intangible), insurers, brokers and risk managers will need to work more closely together to build appropriate resilience into assets, processes, and systems.

Insurance business models must evolve from protecting against downside financial risk to proactively adding value through risk prevention and loss mitigation services. A great example is cyber insurance, where pre- and post-breach services have become an essential part of the insurance offering.

A healthy tripartite relationship between insurance broker, carrier and client is essential to leverage the carrier’s insurance knowledge and expertise, the broker’s advice and advocacy, and the client’s organizational knowledge and stewardship. This requires more dialogue and greater collaboration among all parties.

This very same dialogue and collaboration are essential to navigate this transitional market effectively. Timely, relevant and high-quality information — delivered with transparency — will benefit all players as we work towards finding the new market equilibrium.


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