2011 Canadian Insurance Outlook breakfast

More than 160 of Canada’s top industry players gathered in Toronto for the 2011 Canadian Insurance Outlook breakfast, co sponsored by Swiss Re and the Insurance Bureau of Canada.

This is the 26th meeting in the annual series, which generated record attendance. C-suite executives, underwriters, claims adjudicators, actuaries, brokers, regulators and the media got their first look at the Canadian insurance industry’s 2010 results and heard from several distinguished speakers.

Swiss Re Canada President and Chief Executive Officer Sharon Ludlow welcomed guests and introduced the morning’s speakers. Sharon spoke of the recent earthquake in Japan and stated Swiss Re’s commitment to the Japanese market. She also announced an innovative transaction by Swiss Re and other partners that will provide microinsurance to small entrepreneurs in Haiti – another stricken part of the world.

Sharon introduced Christian Mumenthaler, a Member of the Swiss Re Executive Committee and Chief Marketing Officer for Reinsurance. Christian discussed industry trends, including expectations for P&C growth in the coming years, restored capital, capital and profit recovery in Life and the future for Longevity risk.

Regarding Longevity, Christian stated that Canada’s pension plans hold about Cdn 819 B in assets and with people living longer those plans will be under pressure to make payouts. He suggested reinsurance holds the key to a solution along with the capital markets.

Christian told the audience that while Japan experienced a huge economic loss from the earthquakes and tsunami, the area is generally underinsured and the industry will be able to manage the insured losses. He also said the events in Japan coupled with other knock-on events should impact insurance rates globally.

Don Forgeron, President and CEO of the Insurance Bureau of Canada (IBC), followed Christian with a talk on the state of Canada’s insurance markets. Forgeron discussed the less-than-desirable state of the Ontario Auto market and blamed those who are trying to abuse the system as the cause of extreme losses and unfavorable results. Forgeron did sound a note of hope, though, indicating that regulators fully support reforms and that elected officials are expected to enact reforms following the elections. “We welcome this alignment of the stars,” he said.

Forgeron was followed by Gregor Robinson, Senior Vice President, Policy and Chief Economist of the IBC, who unveiled the industry’s 2010 results. Said Robinson: “we’re doing a little bit better, but challenges remain.”  He noted that low interest rates, nat cat events, tort liability and Ontario Auto continue to plague the industry and prevent a full recovery. He said industry ROE is back up near the historical average and capital levels are rising. This is the third straight year that Canadian insurers have posted an underwriting loss, said Forgeron, but he noted it is smaller than in past years.

Following the speakers, attendees had an opportunity to ask questions on topics ranging from Japan quake to Solvency II to Longevity risk to capital levels in the Canadian market.

Photo Gallery

2011 Canadian Insurance Outlook

sigma 5/2016 – Strategic reinsurance...

There is a growing trend toward more holistic and customised use of reinsurance and insurance solutions.

Read the whole story

sigma 4/2016 - Mutual insurance...

Over the past few years, premiums written by mutual insurers have outpaced the growth of the wider insurance market. The sector has undergone a modest recovery but also faces new challenges.

Read the whole story