Top Ten Issues 2009/2010:
Chris Duffield, Swiss Reinsurance Company Limited
December 11, 2009
Chris Duffield is the vice president, Client Market, at Swiss Reinsurance Company Limited. When asked to list the top issues that shaped 2009 and to predict the top 2010 issues, Duffield offered her short list.
“Here is my list top five for 2009, and my top five for 2010 is more of the same, with a few twists,” Duffield said.
Top Five Issues of 2009
1. Global financial crisis.
Why? The crisis has had serious implications for the financial results of most insurance and reinsurance companies, especially on the investment side. It has also generated uncertainty for years to come and has triggered regulatory activity. The good news is it reinforced the message that underwriting results have to stand on their own.
2. Weather related claims, especially water claims.
Why? Losses have exceeded many primary companies' estimates and is yet another hit to the bottom line.
3. Auto results—especially Ontario.
Why? Auto insurance is a huge issue for both insurers and consumers alike—bad results impacting insurers and affordability issues impacting consumers.
4. Climate change.
Why? We know it is happening, but there is still a lot of uncertainty about specifically what it means for Canada and our industry—how much of our weather related losses are cyclical and how much are structural? More importantly, how do we respond to these changes as an industry?
5. Accounting changes.
Why? Appear to be making it more difficult to forecast and understand results. The International Financial Reporting Standard (IFRS) might also lead to reserve adjustments for some players.
Top Five Issues of 2010
6. Fallout from the global financial crisis.
Why? Although the situation won't be as extreme as 2009, uncertainty surrounding our recovery and the fallout from the crisis will remain. There will be greater focus on issues such as potential for inflation over the long run. These issues have significant implications for the financial health of our industry.
7. Market hardening.
Why? We're long overdue. Results should trigger the need to act.
8. Weather related claims, especially water claims.
Why? This is an issue that is not going to go away any time soon.
9. Auto reform.
Why? Today's headlines have indicated that the government will be taking action on some significant product reform. Auto product changes are always challenging given the diverse stakeholders involved in the process.
10. Climate Change.
Why? An ongoing issue locally and globally. The industry needs to actively contribute to the debate on climate change adaptation. |
