Insurance Against Losses From Natural Disasters

Insurance for Loss from Natural Disasters

Insurance Industry Trends: How To Prepare For Natural Disasters

Two of the ten costliest natural disasters in recorded history struck Canada in 2022: Hurricane Fiona ($660 million) in Atlantic Canada and the Ontario and Quebec Windstorm ($875 million).

According to the Insurance Bureau of Canada, $2 billion in catastrophe insurance losses are now the norm for Canada as a result of the intensity and frequency of natural catastrophes and other extreme weather events which are highly contributing in continuous climate change.

What Is A Severe Weather Loss?

Damage to your business or personal property and assets caused by natural catastrophes, including : 
• Floods
• Wind storms (hurricanes, derechos etc.)
• Convective storms (causing hail, water and wind damage)
• Wildfires
• Earthquakes

The Current Market Scenario That’s Affecting Your Insurance Policy

1.  Reinsurance 
The businesses that insure your insurance company to help pay out the losses—are entering the hardest market seen in the past 20 years.
In recent research, it’s been warned that if reinsurers begin to "retreat" from reinsuring catastrophe exposures, this will leave a protection gap in an already competitive market. Reinsurers are currently contending with rising interest rates, an impending recession, economic volatility, and escalating losses.

2.  Insurance Against Earthquake
Montreal, Ontario, and British Columbia have the highest exposure levels of earthquakes. Homeowners looking to purchase or renew earthquake insurance may face greater earthquake deductibles, higher rates, and uncertainty as a result of the tightening reinsurance market. The hope is that reinsurers will be able to plug the gap in 2023, which is why brokers are scurrying to assist their clients in finding the insurance coverage they require.

Coverage That Really Counts

It might be more challenging to find the right insurance as insurance firms may interrogate you extensively and demand justification for taking on your risk as well as evidence of your effective risk management. There are a few advises that you can follow :

1.  Get started early
Speak with your insurance broker well in advance of the renewal of your insurance to provide them with the finest information available to assist you with your renewal. Your business and personal property can be safeguarded with the assistance of A-Kan Insurance by coming up with novel, imaginative solutions.

2.  Develop a strong risk management strategy
Do your due diligence to improve your risk profile. Your broker can assist you in managing your exposures and risk management strategy.

3.  Be willing to compromise
Discuss with your broker what your priorities are with regard to your insurance policy. There will be some compromise required, so assess the advantages and disadvantages of a greater deductible v/s a higher premium.

Natural Disasters are ought to be uncertain, but you can certainly make your future secure with A-Kan Insurance.


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