Canadian towns and cities are evolving at a rapid rate. Increased connectivity and new technology are forcing municipalities to change their approach towards creating safe, prosperous and livable communities for current and future generations.
Growing environmental concerns, increasingly diverse constituents, fiscal constraints and crumbling infrastructure are forcing municipalities to reconsider how they prioritize the delivery of services to best meet the growing and multifaceted needs of their residents. Municipal insurance and risk mitigation are key points of consideration.
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Success in this space does not come easy. How do you prepare for something that’s not even in existence yet? JLT Canada, a member of JLT Group, is a global leader in municipal insurance. It recently held its inaugural JLT Canada Public Sector Summit to bring together Canadian municipal leaders to take an innovative look at the future of Canadian communities.
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“We want Canadian municipalities to change their focus. They need to be able to prepare and make decisions today that will have long-lasting effects for 25-50 years,” said Ron Barnes, managing director, JLT Canada.
“Connectivity is developing rapidly and new technologies are emerging all the time. We want our municipal leaders to admit they don’t know the answer to all future developments but are ready to have discussions with the right people and make strategic partnerships to make those decisions.”
Autonomous vehicles, drones and robotics are hot topics among municipalities. What sort of infrastructure needs to be put in place to manage autonomous vehicles? Will municipalities need new parking regulations, road signage and legislation?
And then there’s drones and the rapid emergence of aerial technology. There have already been instances of drones causing incidents, injuries and breaches of privacy. What’s the responsibility of the municipality when it comes to drones and what guidance should they be getting from their insurance brokers to assist them in the management of this space?
“When it comes to preparing for the future, municipalities need to be thinking about their potential risk management decisions as well as insurance products,” Barnes told Insurance Business. “Take infrastructure as an example. Infrastructure is more than just roads and sidewalks. It also includes fiber-optic lines and WiFi.
“As municipalities move into a new connected space, they need to start considering the new risks. If a city is connected by a wireless network, does that increase or decrease its cybersecurity? Hackers are changing their tune and are starting to target municipalities and public-sector entities to take control of their files and demand ransom. What happens if cyber criminals take control of a whole city’s infrastructure?”
Municipal insurance is a specialized and complex business. Municipalities can buy risk transfer products but they need to look beyond that and consider where risks are emerging, said Barnes. Insurance brokers can help by exposing municipalities to what’s coming around the corner.
