Within the insurance claims landscape, 2023 has unfolded as a period of period of adaptation, marked by supply-chain challenges, natural catastrophes, and the ongoing repercussions of the COVID-19 pandemic.
During a recent roundtable discussion hosted by Insurance Business Canada, industry experts from CNA Canada, Desjardins General Insurance Group, and Royal Claims Services offered their insights on the trends developing in the insurance claims space.
Following the pandemic, digital transformation has continued to accelerate and open new avenues for the industry, according to Valérie Lavoie, president and COO of Desjardins General Insurance Group.
However, the shift to a post-pandemic world also introduced specific challenges, particularly in the realm of auto insurance.
“In a survey by the Traffic Injury Research Foundation, 60% of respondents cited fewer vehicles on the roads as the main reason for exceeding the speed limit, and many agreed that they would continue to speed post-pandemic, now that it has become a habit,” said Lavoie.
As for commercial insurers, Brynn Tucker, CNA Canada assistant vice president of claims, noted that the pandemic brought about a dip in property and casualty claims frequency. This trend was only disrupted by a spike in business interruption claims.
Commercial property claims have gradually returned to pre-pandemic levels, according to Tucker. Simultaneously, commercial liability payouts have decreased despite an uptick in reported claims, with litigation awards and associated costs on the rise.
Royal Claims Services, represented by president Matt Woodall, also reported a “surge” in smaller claims post-pandemic.
But one positive outcome of the pandemic is the re-evaluation of policy wordings, according to Woodall.
“The pandemic opened up a lot of questions regarding wordings and how and when they should apply,” he said. “It was similar to a situation like Fort McMurray, which was devastating for the industry and led to a revision of wordings.”
How else has the insurance claims landscape evolved this year? Learn more by taking a look at Insurance Business Canada’s today's claims trends.
