Way back in 2020 Q1, before the world turned upside down, the Canadian property and casualty insurance results were on the rebound from a difficult prior year.
But on Mar. 11, 2020, the World Health Organization declared the novel coronavirus to be a global pandemic. Governments soon shut down non-essential businesses to slow down the spread of COVID-19, the disease caused by the virus. Canada’s economy has since plunged into an abyss, and the industry is left to guess what the resultant economic recession could mean for 2020 Q2.
Canadian Underwriter has asked a panel of industry executives to look into the crystal ball and predict how the current economic recession will affect the P&C industry moving forward into Q2.
Joining us on the panel will be Alister Campbell, president and CEO of the Canadian Property and Casualty Insurance Compensation Corporation (PACICC); Saad Mered, CEO and Chief Agent of Zurich Canada; and Roger Hacala, past president of the Toronto Insurance Council (TIC) and national practice leader of BFL Canada Risk & Insurance Services.
Our panellists will discuss the implications of enormous economic dislocation on the Canadian P&C industry. In particular, 80% of the industry’s commercial small business clients were ordered to shut down their offices, according to statistics from the Canadian Federation of Independent Business (CFIB). Recent surveys suggest about 12% of these businesses are considering bankruptcy or shutting down for good. Canada’s unemployment rate is projected to hit 13.7 in 2020 Q2%.
The panel will discuss the projected impact of the economic meltdown on commercial brokerages and insurers and their clients. Panellists will also discuss the impact of the economy on the industry’s financial position as a whole in 2020 Q2.
Emerging claims trends will play a big factor in the industry’s financial position looking forwards, and panellists will discuss how COVID-19 may impact claims.
Also, the economy is also lagging globally, not just nationally. That will affect how capital is accumulated throughout the world, and how reinsurance rates may be affected as a result.
The pandemic has also affected the economy and claims trends in the United States, and our panellists will talk about the impact of what this could mean for commercial clients who have operations on both sides of the Canadian-U.S. border.