We are seeing strong demand for reinsurance in Canada heading into 2025. A key reason for that is the frequency and severity of natural disasters so far in 2024.
Across the country, we’ve seen severe thunderstorms with golf ball-sized hail, and we’ve had devastating flooding in areas that previously would have been considered low-risk. We’ve also witnessed massive, destructive wildfires — something that’s become all too familiar over the past few years.
Events like these lead our insurance partners to seek additional protection. We realize a high-catastrophe year in Canada affects different clients in different ways, and so we believe it’s important to take a tailored approach rather than provide a one-size-fits-all solution.
It’s not just financial protection insurers need. They are also turning to reinsurers for value-added insights that can help them better understand and mitigate these risks, unlock innovation and enhance performance.
Global losses have increased by an annual average of between 5% and 7%. That’s why you often hear the phrase ‘our new normal’ when it comes to the types of perils we are experiencing.
But there is good news as we approach 2025. Our understanding of the risks and the ways we can better protect ourselves are improving all the time.
Reinsurers provide insights and knowledge that enhance risk awareness and inform sound risk management strategies. While we are shock absorbers, we also like to think of ourselves as strategic partners offering stability and new ideas, helping our clients choose the best path forward.
Building partnerships between reinsurers, insurers, governments and non-profits is essential to creating affordable and more accessible insurance solutions in Canada. These collaborations extend critical disaster recovery financing to communities around the world, helping them recover and rebuild when it matters most – like we saw during 2024, when well in excess of 250,000 claims were paid out. Each one of them directly helps a family or business.
