December 28, 2020 by Adam Malik
It has been a memorable year for all of us as 2020 has been particularly eventful for those of us in the insurance industry. We’re used to dealing with floods, fires, storms, and other unexpected natural catastrophes. Still, this year, in addition to these somewhat familiar challenges, we have faced a global pandemic and a record number of hurricanes and tropical storms, all in the midst of a transitioning insurance market.
I’m very proud of how Marsh responded to the global pandemic, transforming our business virtually overnight to work remotely while continuing to support our clients’ evolving strategic and operational needs during this uncertain time. It is a testament to the strength and resilience of our people. We have also been working with industry leaders and governments in Canada and around the world to develop public-private pandemic risk solutions to accelerate economic recovery and provide much-needed protection against future pandemic risks.
If 2020 has taught us anything, it is the importance of corporate resilience. To survive and thrive in today’s global economy, Canadian business leaders need to have a clear understanding of the risks — and related opportunities — their organizations are facing in the short and long-term. More importantly, to develop appropriate mitigation strategies, they need to move beyond addressing individual risks to focus on the interconnectivity of the risks.
We expect current market conditions will continue into 2021. The low-interest-rate environment, combined with the impact of losses related to COVID-19, wildfires, and the Atlantic hurricane season, will challenge insurers’ profitability, driving up rates for some coverages and industries. No doubt, 2021 will be another challenging year for many of our clients. Our job as brokers is to ensure our clients are prepared so that they will have choices and options regardless of the market conditions.