Canada’s property insurance industry is concerned about the risks associated with extreme weather events and the impact of inflation on claims costs, according to an analysis report from professional services firm Aon.
This report released on Tuesday also echoes the report published last Sunday in the Vos finances section of La Presse, concerning the impact of extreme weather events and the inflation of claims costs on the increase in premiums and insurance restrictions. property insurance coverage.
“Challenges facing the property insurance market remain top of mind for insurers, primarily due to natural catastrophe concerns and reinsurance costs,” said Russell Quilley, head of commercial risk management and head of brokerage for Canada at Aon.
“Climate change concerns will weigh heavily on property insurance risk exposure, which is why insurers are equipping themselves with sophisticated risk modeling and quantification tools to better understand and manage risks . »
According to a survey carried out by the firm Aon, at the end of the second quarter of 2023 (as of June 30), Canada had recorded insured losses related to weather catastrophes worth approximately $760 million.
For property insurance clients, Aon’s analysis report notes that they should expect “insurers to manage portfolio performance through careful risk selection, which highlights the importance of reliable and good quality information on risks for policyholders. »
Therefore, Aon warns, “customers should expect (risk assessment) to be central to the renewal process” of their property insurance contract.
“The property insurance market continues to be a dynamic space given persistent rate increases and careful monitoring of valuations” of insurance contracts, according to Aon.
