“The bottom line is that there has been a perfect storm brewing for quite some time — the hard market we’re in right now is not just caused by COVID-19. In fact, a combination of extreme weather events, which have caused catastrophic losses, increased overall claims, low investment returns for insurers driven by declining bond yields, AND the pandemic — this has all led us to where we are now and resulted in challenging market conditions. We know that business owners need access to comprehensive coverage, so as an industry, we have taken steps to create resources to guide you.”
Rob De Pruis, Director, Consumer & Industry Relations, Western, IBC
On May 12, MCC hosted an informative webinar, Asked & Answered: State of the Commercial Insurance Market, featuring expert guests Rob De Pruis, Insurance Bureau of Canada, and Brett McGregor, President, Guild/HMS Insurance Group Inc. and President, Insurance Brokers Association of Manitoba (IBAM). ICYMI, here are some key take-aways from this webinar event, as well as resources to help you learn more about the global forces affecting the market and ways to improve your commercial insurability.
Take-away #1: Check out helpful IBC resources for businesses at a dedicated website: https://businessinsurancehelp.ca/ or call the business insurance help line #1-844-227-5422.
Take-away #2: According to De Pruis, we are seeing market conditions starting to stabilize in various sectors across the country, but if you’re getting ready to renew a policy, reach out to your broker or an insurance rep to discuss how your insurance could be affected. “Your business revenues could have been significantly impacted by the pandemic – make sure you discuss these changes before your next renewal so you have the right insurance coverage for your business needs.”
Take-away #3: The cost of building materials has skyrocketed in the last year due to supply shortages and increased demand. Many, but not all, homeowner policies include Guaranteed Replacement Cost endorsements which guarantee the replacement of your home with a similar home regardless of the limit you are insured for. This provides protection against fluctuations in building materials. Farm and Commercial insurance policies typically don’t include the same protection and you are restricted to the limit of insurance purchased. “With the changes in building costs, you should talk to your broker about whether your limit of insurance is high enough,” says IBAM President McGregor.
Download a Deloitte whitepaper commissioned by IBC: State of the Canadian Commercial and Property & Casualty Insurance Market.
To download the event presentation slides, click here.