TORONTO, May 23, 2024
/CNW/ -- Aon plc (NYSE: AON), a leading global professional
services firm, has released its Spring 2024 Canadian Insurance
Market Update. Published in support of Aon's ongoing commitment to
help Canadian clients make better decisions about risk management
and insurance programs, the report finds that a robust competition
within the Canadian insurance market is creating a more buyer
friendly market. Competition is returning as insurers look for
growth opportunities with a particular emphasis on well-performing
risks. The appetite for growth is expected to expand and evolve
with insurers competing to retain and grow their positions in the
market.
"Overall, there is an expansion in capacity and appetite
signaling that the market is transitioning into a more competitive
space. However, the focus on risk selection continues to prevail as
insurers strive to maintain profitability," said Russell Quilley, head of commercial risk and
chief broking officer for Canada
at Aon. "Underwriting remains disciplined and risk differentiation
continues to be a top priority as underwriters increasingly rely on
data, insights, and analytical tools such as modelling to support
decision making."
Other key findings include:
- As organizations seek to manage volatility in their insurance
programs, there is momentum in the market for alternative risk
solutions such as parametric solutions, structured insurance
facilities and captives.
- Many insurers returned to profitable positions in 2023, leading
to healthy competition in the marketplace.
- Insurers are managing their portfolio performance through
careful risk selection and deploying capacity strategically which
highlights the importance of quality and robust risk information
for policyholders.
- London markets are looking to
diversify their global portfolios and Canada is seen as an attractive investment due
to our relatively low catastrophic exposure.
- Following remediations to their portfolios, most domestic
insurers are targeting the manufacturing space as a growth segment
softening appetites to achieve growth ambitions and
retentions.
- In 2023, global economic losses are estimated at $380 billion while the global insured losses were
$118 billion, creating a 69% global
protection gap.
About Aon
Aon plc (NYSE: AON) exists to shape
decisions for the better — to protect and enrich the lives of
people around the world. Through actionable analytic insight,
globally integrated Risk Capital and Human Capital expertise, and
locally relevant solutions, our colleagues provide clients in over
120 countries and sovereignties with the clarity and confidence to
make better risk and people decisions that help protect and grow
their businesses.
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Media Contact
Alexandre
Daudelin
alexandre.daudelin@aon.com
+1 514 967 9330
SOURCE Aon plc