TORONTO, Oct. 7, 2024
/CNW/ -- Aon plc (NYSE: AON), a leading global professional
services firm, has released its Fall 2024 Canadian Insurance Market
Update. While a competitive atmosphere continues as insurers strive
for market share, the significant catastrophe activity Canada has faced in 2024, along with other
factors discussed in the report, may lead to a
quicker-than-anticipated shift back to a more conservative stance
characterized by stricter underwriting practices and a focused risk
selection process.
"The complexity and rapidly evolving nature of the Canadian
Property and Casualty (P&C) insurance industry makes it
extremely difficult to forecast future state. While historical
market challenges like inflation and interest rate volatility
are stabilizing and easing market conditions, catastrophic events
continue to pressure the Canadian marketplace," said Russell Quilley, Head of Commercial Risk and
Chief Broking Officer for Canada
at Aon. "As of September, 2024 is already the costliest year on
record for insured catastrophe losses in Canada with estimated total losses in excess
of $7.6 billion."
Other key findings include:
- Increased competition has moderately eased market conditions,
but auto theft and increasing cost of repairs continues to erode
insurer profits in the auto segment.
- Remediations to portfolios resulted in overall profitable
underwriting results after having reached healthy pricing levels
and focusing on risk selection, as evidenced in the Q2 2024
industry results.
- Reinsurance market conditions have stabilized in 2024 with a
selective appetite for growth and more flexibility shown by
reinsurers – but Catastrophe activity could cause challenges
heading into 2025 renewal negotiations.
- The casualty market remains moderately competitive with a
two-tiered market emerging as insurers have started to define
themselves as either primary or excess players.
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 with the clarity
and confidence to make better risk and people decisions that
protect and grow their businesses.
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Media Contact
Alexandre
Daudelin
alexandre.daudelin@aon.com
+1 514 967 9330
SOURCE Aon plc