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Canada Chronicles: President's message

As I thought about what would be an appropriate theme for the President's note in this first Canada Chronicle of 2022, it was clear that the resounding return to in person meetings, attending live industry events and business travel, had to take center stage. London has been eager to re-engage with coverholders, open market correspondents and the Canadian P&C industry generally, and that is evident from the sheer number of Lloyd's underwriters and brokers that are currently visiting every corner of Canada.

For our part, the Lloyd's Canada team has been busy in the marketplace getting back to in person engagements. In April this year I attended RIMS in San Francisco, where I had the privilege of meeting with various Canadian risk managers to discuss how they utilize the Lloyd's market to address their respective organization's risk transfer needs. Closer to home, I was honoured to attend the Canadian Broker Network's Annual Presidents Dinner and be a guest speaker at their Commercial members' conference.

Also in April, Asima Zahid, our Director of National Distribution, hosted our first Lloyd's Bootcamp, a two-day program designed to provide newcomers to the P&C industry in Canada with an in-depth introduction to the Lloyd's marketplace. My special thanks go to Paul Howard, from AXA XL; John Eltham, from Miller Insurance brokers; Chris Moore, from Apollo syndicate; Evan Pollock from Beazley; Tom Hazzard, from Lloyd's Futureset; and Rosie Denie from the Lloyd's Innovation Lab. We received very positive feedback from the participants of the inaugural Bootcamp and we are pleased to confirm that planning for an enhanced, in person program for next year is already underway.

In my first trip to Western Canada since joining Lloyd's I travelled to Banff to attend the Insurance Brokers' Association of Alberta Annual Conference and then on to Calgary and Vancouver to meet with trading partners in those cities. Most recently, Lloyd's Canada was honoured to attend and be a supporter of the first in person Annual General Meeting of the Canadian Association of Managing General Agents, with our colleagues Hank Watkins, Regional President of the Americas, and Paul Brady, Head of Pollicyholder & Third Party Oversight, who delivered the keynote address to the CAMGA membership on how Lloyd's is attempting to work with syndicates to streamline delegated authority oversight (look for some big announcements over the summer).

In the first half of the year the Lloyd's Canada team has also taken some time out to give back to our communities, dedicating time at the Daily Bread Food Bank in Toronto and continuing our work with the next generation of socially conscious entrepreneurs through Enactus Canada.

I am pleased to report that Lloyd's continues to grow in Canada with the first quarter statutory returns delivering $2.5 billion of net premium written which represented 25% growth over the same quarter in 2021. In the first quarter of 2022 growth was fueled predominately by the delegated authority distribution channel. In terms of classes of business, Specialty, Casualty FinPro and Accident & Health, lead the way in growth. The combined ratio for the market was a very respectable 81.5%.

The impact of inflation, now trending close to 7% in Canada, and higher than what has been seen in over a generation, is perhaps the single largest issue that continues to drive pricing increases and attract underwriter's attention. Supply chain disruptions and labour shortages have increased the cost of claims and should be cause for policyholders and brokers to re-examine and update the stated values of insured assets.

 In Quebec Bill 96 (An Act respecting French, the official and common language of Quebec) was hurriedly enacted into law on June 1, 2022. The law reinforces the obligation to conduct business in French in the first instance, before English can be utilized. Lloyd's Canada recently issued a Bulletin providing more details on the law. Notwithstanding that the bill has been passed into law, it contains certain provisions that remain unclear, and may provide important exceptions to the "French first" rule. Lloyd's Canada is currently seeking further clarity on these provisions and will update the market when further clarity is obtained.

Lastly, as we look ahead to what will be an equally busy last six months of 2022, I want to invite all Lloyd's stakeholders (and those who are perhaps interested in learning how to start placing risks with the Lloyd's market) to attend our upcoming Canada Meet the Market, taking place on October 12th, 2022, in Toronto. This will be the first Meet the Market event in Canada since 2019 and we are expecting a strong turnout from London including representatives from multiple syndicates, Lloyd's brokers, and Lloyd's executive leadership including Patrick Tiernan, Chief of Markets. If you are interested in attending, and have not yet received an invitation, please sign up below. 

As always, I hope you find the information contained in this edition of the Lloyd’s Canada Chronicle to be useful and please continue to share feedback with us.