Canadian Underwriter

2019 Executive Outlook | Ulrich Kadow, AGCS Canada

January 3, 2019   by Canadian Underwriter

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Canadian Underwriter approached Canadian P&C industry executives with two questions:

1) What is the single most important change the industry must make looking forward into 2019?

2) How might this change be brought about?

Their answers, featured in our 2019 Executive Outlook, may provide you with insight as you set your own agenda for change.


Ulrich Kadow, CEO & Chief Agent, AGCS Canada

Adjusting to the first signs of a hardening market in Canada will be one of the changes the insurance industry needs to make as we approach 2019.

Historically, hard markets follow major catastrophe losses, resulting in insurers raising rates and limiting coverage offerings to balance the cost of claims.  There were significant catastrophic losses in 2017; during the first half of 2018, loss frequency and severity in several lines have been at historic highs.

As a result, we are seeing signs of market hardening in some areas. Markets are exiting certain classes or segments of business, adjusting risk appetites and pricing, realigning their broker strategies and streamlining new business in exchange for profitability. This is a result of carrying non-performing segments that have failed to remain competitive and/or subject to regulatory restrictions. Also, catastrophes have had an impact in 2018. Major events this year have caused a restriction in capacity in most major commercial markets.

This emerging market cycle will lead insurers to use enhanced risk mitigation and pricing tools to ensure a robust and efficient solution. Now, more than ever, a customer-centric approach, longevity and relationship management with the insurer is crucial.

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