In a recent mid-year review of insurance market conditions in Canada, Aon notesthat risks associated with indigenous communities continue to be difficult to insure.
A daily news publication La Presse shone a light on the challenges of obtaining personal coverage in indigenous communities in Quebec.
For commercial lines, risk pricing is rising steadily, particularly for property insurance. However, Aon brokers describe these increases as modest compared with other segments in that category. The loss ratio for a given risk can also be a factor, they add. In many cases, deductibles and retention limits are adjusted to offset premium increases.
More difficult risks to cover
For liability risks, overall loss experience and inflation are pushing premium pricing higher. Retention limits, however, remain stable for these types of risks, Aon brokers say. Coverage extensions such as wrongful termination and abuse liability, however, pose more of an underwriting challenge.
“Within casualty, there is a restricted appetite for medical malpractice exposure, U.S. auto exposure, social housing, child and family social programs, hotels/lodges and snow removal operations,” the AON review explains.
The Aon brokers add that the London markets continue to underwrite risks for the indigenous business market in Canada. A small number of underwriting syndicates are serving this segment, they say.
Regarding liability risks associated with aboriginal communities, it is more difficult to insure risks with cannabis exposure, sawmills, fisheries, telecommunication services and renewable energy, Aon continues. Limitations are also being seen in the construction market. Vacant properties and large commercial buildings in remote locations also present underwriting challenges, Aon brokers say.
Other risks under scrutiny
Aon summarized the commercial insurance risks related to aboriginal communities that insurers are watching very closely. In property insurance, the list includes fire, including arson, water damage, vandalism, crime, flood and potential wildfires. In liability, this list includes wrongful termination, employers’ liability and personal injury.
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