Bardswick calls for proactive approach to reforms

During the current volatile economic environment the insurance industry needs to be more proactive with property reforms in particular water exposure to avoid political intervention like that seen with recent auto reforms, Kathy Bardswick, president and CEO of Co-Operators Group Ltd., told a crowd of delegates at the first A.M. Best Canadian Review & Preview Conference in Toronto.
My fear is that as the economics become increasingly volatile the consumer expectations and confidence will become increasingly volatile in response, Bardswick said.
As the insurance industry works through this volatility and continues to generate the returns that, we have only recently started to generate, she said that she believes those returns will be under attack.
For example, I think that one of the largest issues coming down the pipe is how well this industry responds to water exposure and the increasing frequency of storms, she said.
If the consumer gets jittery, and the politician gets jittery, and if we see increased exposure, and insurers excluding, denying or not responding appropriately in the eye of the constituents, then we will get knee jerk reactions to the industry, she suggested.
She pointed to recent auto reforms that came with heavy political intervention and public scrutiny.
I worry that given the volatility that weve seen in our industry, we have got to be anticipating much more effectively long term issues today before they become public issues.
In order to tackle the issue, she suggested that the industry work together as a committee to develop a solution to have ready to present to the regulators, rather than acting in a reactive fashion.