AON - Robust competition is creating a more buyer friendly market: Aon's Spring 2024 Canadian Insurance Market Update

Canada NewsWire

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

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