Navigating the Canadian insurance landscape in 2023

Navigating the Canadian insurance landscape in 2023

Navigating the Canadian insurance landscape in 2023

21 Mar 2023

2023 will be a difficult year for the Canadian insurance market. The uncertainty of a looming recession, sky-high interest rates, and the prevailing hard-market all point to challenging placements for local brokers.

The Canadian insurance market in 2023 is facing placement challenges in the areas of Errors & Omissions (E&O), Medical Malpractice, Commercial General Liability (CGL), and Directors & Officers (D&O) Insurance.

These challenges have been influenced by a range of factors, including changing market conditions, increased regulatory scrutiny, and emerging risks.

Below we highlight the current challenges in each insurance class:

E&O Insurance

In this class, many insurers are becoming more selective in the risks they underwrite, resulting in higher rates and reduced coverage options. This can make it challenging for local brokers to find suitable coverage for their clients, particularly for businesses that are considered higher-risk or have complex operations.

Medical Malpractice

Medical Malpractice insurance is also facing placement challenges, with insurers taking a more cautious approach to underwriting risks in this area. The increasing severity of claims and the emergence of new technologies such as telemedicine and artificial intelligence have made it more difficult to assess and price risks, leading to tighter underwriting criteria and higher rates.

CGL Insurance

Similarly, Canadian insurers are scaling back their exposure to certain risks or raising rates in response to a range of factors, including increased litigation, new risks such as cyber-attacks and data breaches, and the impact of climate change.

D&O Insurance

In D&O, insurers are becoming more selective in the risks they underwrite and raising rates in line with the current economic climate. This is partly due to the increasing frequency of claims related to securities litigation and shareholder disputes, which have put pressure on insurers to tighten underwriting criteria and increase pricing.

Despite the placement challenges in the Canadian insurance market for E&O, Medical Malpractice, CGL, and D&O insurance, there are viable options for local brokers looking to secure coverage for their clients.

Placing Perfection

At Servca, have a long history of providing specialized coverage for complex and high-risk risks and are well-equipped to handle the challenges associated with underwriting E&O, Medical Malpractice, CGL, and D&O risks. We aim to provide an efficient and communicative service for our Canadian partner brokers.

Placement statistics show that the London Market continues to play a significant role in the Canadian insurance market, particularly when it comes to placing high-value and complex risks. In 2022, the London Market accounted for 26% of Canadian commercial insurance premiums, with a significant portion of this being placed in the E&O, Medical Malpractice, CGL, and D&O segments.

Furthermore, a recent survey of Canadian insurance brokers found that 45% of respondents had used a London Market broker for at least one placement in the past year, with the majority reporting a positive experience. Brokers cited the London Market's expertise, range of underwriting options, and ability to handle complex risks as key factors in their decision to partner with a London Market broker.

Servca is an owner-managed independent Lloyd’s broker specialising in casualty lines of Insurance. We leverage our market relationships and expertise in E&O, Medical Malpractice, Cyber Liability, CGL, D&O, and Financial Institution Insurance to provide our Canadian partners with quotations that are robust in coverage.

Why not get in touch and learn more about our appetite and how we can add value to you in the placement of specialty risks into the London Market?

The Canadian insurance market in 2023 is facing placement challenges in the areas of Errors & Omissions (E&O), Medical Malpractice, Commercial General Liability (CGL), and Directors & Officers (D&O) Insurance.

These challenges have been influenced by a range of factors, including changing market conditions, increased regulatory scrutiny, and emerging risks.

Below we highlight the current challenges in each insurance class:

E&O Insurance

In this class, many insurers are becoming more selective in the risks they underwrite, resulting in higher rates and reduced coverage options. This can make it challenging for local brokers to find suitable coverage for their clients, particularly for businesses that are considered higher-risk or have complex operations.

Medical Malpractice

Medical Malpractice insurance is also facing placement challenges, with insurers taking a more cautious approach to underwriting risks in this area. The increasing severity of claims and the emergence of new technologies such as telemedicine and artificial intelligence have made it more difficult to assess and price risks, leading to tighter underwriting criteria and higher rates.

CGL Insurance

Similarly, Canadian insurers are scaling back their exposure to certain risks or raising rates in response to a range of factors, including increased litigation, new risks such as cyber-attacks and data breaches, and the impact of climate change.

D&O Insurance

In D&O, insurers are becoming more selective in the risks they underwrite and raising rates in line with the current economic climate. This is partly due to the increasing frequency of claims related to securities litigation and shareholder disputes, which have put pressure on insurers to tighten underwriting criteria and increase pricing.

Despite the placement challenges in the Canadian insurance market for E&O, Medical Malpractice, CGL, and D&O insurance, there are viable options for local brokers looking to secure coverage for their clients.

Placing Perfection

At Servca, have a long history of providing specialized coverage for complex and high-risk risks and are well-equipped to handle the challenges associated with underwriting E&O, Medical Malpractice, CGL, and D&O risks. We aim to provide an efficient and communicative service for our Canadian partner brokers.

Placement statistics show that the London Market continues to play a significant role in the Canadian insurance market, particularly when it comes to placing high-value and complex risks. In 2022, the London Market accounted for 26% of Canadian commercial insurance premiums, with a significant portion of this being placed in the E&O, Medical Malpractice, CGL, and D&O segments.

Furthermore, a recent survey of Canadian insurance brokers found that 45% of respondents had used a London Market broker for at least one placement in the past year, with the majority reporting a positive experience. Brokers cited the London Market's expertise, range of underwriting options, and ability to handle complex risks as key factors in their decision to partner with a London Market broker.

Servca is an owner-managed independent Lloyd’s broker specialising in casualty lines of Insurance. We leverage our market relationships and expertise in E&O, Medical Malpractice, Cyber Liability, CGL, D&O, and Financial Institution Insurance to provide our Canadian partners with quotations that are robust in coverage.

Why not get in touch and learn more about our appetite and how we can add value to you in the placement of specialty risks into the London Market?

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

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Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE



+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies

Global Headquarters

Servca Group

Dukes House

32-38 Dukes Place

5th Floor

London, EC3A 7LP

United Kingdom


+44 (0) 207 2250000

info@servca.com


Broker at Lloyd’s SLM1389

European Office

Servca Europe

Dragonara Business Centre

Dragonara Road

5th Floor

St Julian’s, STJ 3141

Republic of Malta


+356 (20) 341690

eu@servca.com


Broker at Lloyd’s (Brussels) SLM1883

Canadian Office

Servca Canada Insurance Group Inc
40 King Street West
Suite 2100
Toronto
M5H 3C2
Canada


+1 (647) 846 5555

canada@servca.com


Non-regulated servicing company

Northern Ireland

Servca Northern Ireland
River House Belfast

48-60 High Street

Belfast

BT1 2BE


+44 (0) 2895582000

ni@servca.com


Broker at Lloyd’s SLM1389

© 2024 Servca


Servca Group Ltd is a private limited company registered in England and Wales; Registered Number: 7727494; Registered Office: Dukes House, 32-38 Dukes Place, 5th Floor, London, EC3A 7LP, United Kingdom. Authorised and regulated by the Financial Conduct Authority. Servca European Insurance Brokers Ltd (a private limited company incorporated in Malta and enrolled to act as an insurance broker); Tower Business Centre, Level 3, Tower Street, Swatar, BKR, 4013, Republic of Malta. UK branch office is registered in England and Wales, authorised and regulated by the Financial Conduct Authority. Servca Canada Insurance Group Inc, a private limited company incorporated at 40 King Street West, Suite 2100, Toronto, M5H 3C2, Canada. Servca group of companies are owned and operated by Servca Group Holdings Ltd, a private limited company registered in England & Wales.

Privacy Policy

Cookies