“Despite all these headwinds that companies are up against, the Canadian market is one of A.M. Best’s most stable for rating distribution,” said the agency’s chief rating officer, Stefan Holzberger, at its annual briefing.
Holzberger is by no means alone in his assessment, with all senior A.M. Best analysts using the event to reiterate the view that Canada’s market continues to be one of the most stable markets worldwide.
Part of the reason for A.M Best’s optimism has to do with the potential attached to a product brokers have struggled to make inroads with. That’s going to change.
“As for cyber risk, it is not a matter of if, but when a company will be hacked, and from an insurance perspective,” said Senior Financial Analyst Jackie Lentz., “potential premium growth could be explosive and market opportunity very expansive,”
Indeed.
Although the Canadian market has its challenges, A.M. Best is maintaining a stable outlook for the Canadian P&C and life segments.
The outlook for reinsurance is just as positive, said Senior Financial Analyst Gale Guerra. She sees positive signals in the Canadian sector as “primary companies retain more, alternative capacity continues to be provided by the capital markets and the broadening of terms and conditions, which really helps reinsurers maintain their market share and retain clients.”
Discussing the Canada life insurance sector, Senior Financial Analyst Richard McMillian noted how “Canadian life insurers are investing heavily in life management and starting new products based on the current low interest rate environment.”
