About 75% of Canada’s trade involves the U.S. commercial market, and an insurer has released an offering that may help domiciled companies protect their U.S. exposures.
Aviva Canada has launched cross-border insurance coverage, for all lines of business, including domiciled Canadian companies with U.S. plated vehicles. Brokers have expressed optimism for the solution, as it grants them access to U.S. resources while allowing them to remain operating in Canada. "We can offer property, liability and automobile coverage for USA entity companies," said Vachon.
This was made possible by
Aviva Canada’s partnership with a U.S.-based carrier.
“We partnered with a company down in the United States that’s an A-rated carrier filed in all 50 states, is compliant and can be the best quality paper down there to serve as a front for us,” said Joe Vachon, executive director, large commercial and national brokers, Aviva Canada.
Argonaut Insurance Company, part of
Argo Group, aligns well with this product since it also provides property, liability and auto coverage, which Vachon says is “all within our appetite.” Brokers benefit from the group’s underwriting and claims efficiency, but retain the ability to make final decisions in the interest of their Canadian clients.
“Our underwriters are on the ground in Canada, and they’re the ones making selection and pricing decisions because we provide the capacity,” Vachon said. “Our guys are making those calls versus just sending a referral to underwriters in the U.S.”
Vachon feels that many enterprises will be able to capitalize on these policies, since market forces have made cross-border trade so appealing to Canadian enterprises.
“When a company in Canada is successful, they want to look across the border since it’s a much larger market, and one of the competitive advantages that Canada has right now is inexpensive manufacturing costs,” he said. “So any manufacturers, distributors or corporations that have any kind of commercial fleet can benefit from this coverage.”
