Lisa Giannone, president, COO, BFL Canada
If we thought 2023 was a year of uncertainty faced with challenges — including transitioning market cycles, inflationary effects on the supply chain, geopolitical risks, climate change-fuelled losses and increased cybersecurity threats — we should prepare to face similar challenges in 2024, coupled with a slowing down of economic growth.
Some key trends in the P&C commercial landscape going forward include market cycles, digitization and automation, data analytics, innovative capacity deployment in insurtechs, clients’ increased service expectations, and investment in talent (people), among others.
Many signs suggest the commercial market is stabilizing on property, and even softening on casualty and executive lines, based on industry and client risk exposures. As we move into reinsurance treaty renewals, we’ll understand how catastrophic climate-related capacity as well as coverage changes will impact clients. It’ll be instrumental to advise clients on loss prevention/control and mitigation plans.
As we continue to witness consolidation and aggregation to achieve scale, our challenge with retaining people will continue. Prospective talent seeks to identify and commit to an organization’s culture, which evolves after an acquisition. Culture, alongside the business model, remains the core foundation of any organization. We remain a people’s business, in which trusted relationships coupled with in-depth technical and industry knowledge are key differentiators. And so, we must continue to invest in talent.
Clients need and want specialized and customized service. They want advice on how to protect their balance sheets for longer periods than one year. Secondary perils and alternative risk transfer programs are becoming more important than ever.
Artificial intelligence and machine learning will deliver real-time data analysis, making risk underwriting easier and more precise. It also enables more sophisticated pricing and claims handling while simultaneously enhancing the client experience. Digital platforms are already streamlining the client experience. Clients now enjoy the convenience of purchasing insurance digitally; however, for brokers, articulating options and advising on coverage remain key.
P&C insurers who de-commoditize their capital offering and align with brokers by offering broader risk management and loss prevention strategies for clients will ultimately be preferred as price competition increases in 2024.
Focusing on technology and innovation will be pivotal in attracting new talent to our industry in 2024. Investment in people and talent will continue to be a priority since the P&C insurance sector’s value proposition remains an enigma to fresh graduates. Branding should continue to include an emphasis on dynamic career paths, while fostering a culture of innovation.
