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the floods of this summer the single largest event in Canadian industry. Clearly, we have seen the companies report their losses and results – and those losses have had an impact – but the industry is still moving along, paying its claims, and everyone is still here and the doors are open. I don’t know if they can do that year-after-year, but most of the companies have a global reach, and they have sustained larger losses to date, like earthquakes and natural catastrophes around the world. But I don’t think anyone wants to re-live an event like that from a personal or an insurance point of view!
Analysts are predicting an uptick in premiums. Can this be avoided?
SL: It is for the insurance companies to deter-
mine the appropriate premium for the risks they have. The market will come into play to determine what the rate will be. It’s not necessarily just premium that may be impacted. There are a number of factors that an insurance company would take into consideration before the final premium is set, such as changing coverage.
In conclusion… As a reinsurer, Swiss Re is actively involved in the assessment and research in the models of countries around the world. We are the only G8 country without a flood program, which makes us an anomaly. We would like to see all the stakeholders move forward to get the right solution for Canada. We are literally cherry picking the pros and cons of programs around the world, and seeing what is best for Canada.
Sharon Ludlow
OCTOBER 2013 | 31