Lloyd’s Canada saw premium income of $5.35 billion in 2021, representing growth of 22%, the corporation has revealed.
Canada makes up the insurance marketplace’s second international market in terms of premium volume, only behind the US.
In 2021, Lloyd’s held on to its status as the largest direct writer of commercial risks in Canada.
Globally, Lloyd’s saw gross written premium of £39.2 billion ($60.8 billion) for the year, a 10.6% increase on 2020.
“Underwriting is crucial and certain classes of business continue to see strong rate increases, whether it’s areas like cyber, cat exposed risks, certain classes of directors’ and officers’, and others are more competitive, [for example] accounts with clean loss experience, clients with best-in-class risk management practices,” said Marc Lipman, Lloyd’s Canada president.
“Pricing is certainly more competitive as the market starts transitioning to what I would term more of a true underwriting environment.”
Canada represents a “very well balanced and diverse book of business” for Lloyd’s, Lipman said, with property, casualty and financial sector coverage some of its biggest lines.
Lloyd’s provides capacity for more than half of the Canadian cyber market and expects to continue to do so for “a number of years”, according to Lipman.
In August, Lloyd’s released a mandate calling for its managing agents to tighten wordings around state-backed cyberattacks and cyber war risk.
“We continue to lead the market addressing issues like state sponsored cyberattacks, and generally making sure [the market has access to] best risk mitigation practices that our clients need to deploy in order to avoid cyber incidents right from the outset,” Lipman said.
Russia’s invasion of Ukraine is likely to spell opportunity for Canadian energy, as countries look to embargoes on Russian oil and gas.
“Canada has an opportunity to step up and fill some of the void created by that to help supplies in Europe and elsewhere,” Lipman said.
“While Lloyd’s remains absolutely committed to its ESG goals and helping our customers transition to cleaner sources of energy and better ways to reduce that energy, there’s a real opportunity to support Canadian energy production and the entire industry to help try and quell some of those challenges and volatility that’s currently out there.”
