Catastrophes & 2015 Insurance Rates

Catastrophes & 2015 Insurance Rates

While the cold winter in Eastern Canada shatters records, businesses can look forward to competitive and stable insurance rates in 2015.

While seemingly recent, the Alberta floods and holiday ice storm that struck Southern Ontario and Atlantic Canada took place in 2013. Across North America, 2014 had fewer major disasters. In fact, “fewer catastrophic losses than anticipated meant improved combined ratios for insurers.”¹

RELATED: Following up on a 2014 commitment to provide $200 million towards a National Disaster Mitigation Program, the Government of Canada made an announcement on January 16, 2015. Major investments will be made to help reduce flood risks and move towards a proactive disaster relief model for Canadians from coast-to-coast-to-coast. Source: Public Safety Canada, 2015

Catastrophes and Business Interruption Planning

The surge of 2013 natural disasters and relative calm of 2014 had a lasting effect on Canadian business owners. As a result, the value of business interruption insurance has never been more apparent.

In addition to insurance, organizations large and small are now updating or creating business continuity plans that address a wide range of worst-case scenarios and natural catastrophes. Overall, it’s anticipated that “rates for business interruption insurance will likely remain fairly flat in 2015—perhaps rising a little—as more buyers express interest in the coverage and more insurers scramble to find solutions for insuring this risk.”²

5 Elements of a Business Risk Management Strategy

Knowing that catastrophes can strike at any time, there’s a lot you can do to protect your organization before a natural or man-made disaster leads to a business interruption situation.

Identifying and addressing risk, controlling losses and managing risk exposures are important ways you can be prepared and get the best value out of your insurance investment. When developing your business continuity plans, these five actions can help:

1. Pinpoint your exposures and cost drivers.
2. Identify the best loss control solutions to address your unique risks.
3. Create a solid business continuity plan to account for disasters and other unpredictable risks.
4. Build a company culture focused on safety.
5. Manage claims efficiently to keep costs down.

An ALIGNED Advocate can provide expert guidance about insurance and risk management best practices for your organization. Talk to one of our advocates today about how we can help you secure the best products, services and insurance solutions for your business.