After a few years of addressing past unprofitability and managing higher-than-normal inflation, we’ve seen the commercial market stabilize in 2024. We remain cautiously optimistic about market conditions looking ahead.
However, we’re also aware of factors that could lead to some uncertainty, such as a continued increase in catastrophic weather events, more regulation, and an uncertain political climate. We saw, for instance, the most destructive season in Canadian history this past summer with initial estimates from Catastrophe Indices and Quantification Inc. citing more than $7 billion in insured losses due to severe weather. We’re also seeing a shift in consumer expectations as they look for greater value and cost savings.
With all of this in mind, it’s more important than ever for commercial insurers to focus on delivering exceptional service, consistency and value.
To do this, we believe it’s important to prioritize meaningful versus transactional relationships. Close collaboration, mutual understanding, and aligned objectives with our broker partners enable them to confidently advocate for customers, knowing they have a reliable, solution-oriented ally who prioritizes customer needs.
For us, consistency of underwriting appetite and a focus on exceptional broker service are also critical. We strive to maintain a stable and predictable approach to underwriting with robust catastrophe (Cat) modelling, which in turn leads to fewer unexpected shifts in policy terms or coverage availability.
Specialization also enables further differentiation, which we find allows us to offer more tailored, customer-centric solutions. This deep understanding helps us, with our broker partners, create greater value by helping customers understand their business risks and providing relevant risk management advice to help keep them safer.
Ultimately, a company’s success is determined by how it can adapt to the needs of the environment, its customers and its partners. As we move into 2025, now is the time to keep an eye on the factors influencing market trends, and double down on delivering exceptional service and stable value to commercial customers.
