June 19, 2020 by David Gambrill
Canada’s pandemic-induced economic recession is now in full swing, and although businesses are gradually starting to open up after a decline in COVID-19 infection rates, there is a great deal of speculation about insolvencies.
And that has the P&C industry talking about the importance of protecting receivables when clients around them are teetering towards bankruptcy.
Canadian Underwriter is hosting a panel of industry executives in its forthcoming webinar, COVID-19 and the Economy: Protecting Your Receivables. The webinar will air on Tuesday, June 23 at 1 p.m. ET. There is no cost to register.
Joining us on the panel will be Karen Ritchie, president of Toronto Insurance Council and vice president of Baird Macgregor Insurance Brokers LP, David Dienesch, board chair of the Receivables Insurance Association of Canada, and president and chief agent of Euler Hermes Canada, and Nancy Babeu, regional sales director of Primaco, a premium financing company.
Our panellists will discuss the implications of the current economic recession on businesses.
The National Bank of Canada, for example, uses equity market pricing as a barometer of how confident investors are feeling about companies meeting their debt obligations. In a recent report, it charted data showing that “market concerns about defaults have increased.”
Closer to the ground level, 12% of more than 4,440 Canadian small businesses surveyed by the Canadian Federation of Independent Business at the end of May agreed with the statement: “I am considering a bankruptcy/winding down my business as a result of COVID-19.”
Talk about business clients not being able to pay their bills has triggered a great deal of discussion within the Canadian P&C industry about the importance of brokerages protecting their receivables.
We will look at specific ways that brokerages and their clients can protect their receivables. And we will look at the benefits of several payment options during the economic crisis that can help clients and brokerages collect payments owed. The panellists will also look forward to the future, in the event that the economic outlook remains poor for quite some time.