Jeff Pearce
Marsh expects insurers to stay shy over mining, oil and gas | Canadian Insurance

Marsh expects insurers to stay shy over mining, oil and gas

Says the Canadian market will stay competitive and flexible

Marsh says mounting loss experience in mining and feared claims in oil and gas are prompting insurers “to treat these industries with scepticism.”  As the economy keeps tanking, the good news is Marsh expects cyber to stay hot (thanks to cloud tech and more sensitive data being collected) and property to remain stable. It’s made these predictions in Canada Insurance Market Report 2016.

Falling commodity prices, says Marsh, have decreased available premiums in mining and the upstream energy sectors, “and as a result, insurers are competing aggressively to hold on to what they have in the hopes that rates will begin to rise in 2016 (or more likely in 2017.)” Many insurers, it notes, are trying to make sure “at least retentions are at the correct levels for both earthquake and flood exposures even if they are unable to get the rating levels they want.”

“Overall, the Canadian insurance market remains competitive and flexible,” says the report. “Insurers are actively trying to maintain premium volumes despite the difficult trading environment.” And Marsh chimed in with the rest of the industry that we can expect to see yet more M & A where there are opportunities.

With environmental claims rising, Marsh says it’s “becoming increasingly difficult for companies to obtain coverage for more challenging environmental risks.” It also notes that “claims from weather-related events now equal and are overtaking fire damage losses in many parts of the country.”