2024 Executive Outlook | Rob Wesseling, Co-operators

Rob Wesseling, President, CEO, Co-operators

The growing protection gap, the affordability of insurance, and our ability to continue providing adequate insurance protection will continue to be a critical issue in 2024. The growing risks from climate change affected Canadians from coast to coast this year, with insured losses surpassing $2 billion at the beginning of September, and we expect that number could surpass last year’s $3.4 billion total—the third worst year in Canadian history—before 2023 ends.

Inflation, supply chain issues, labour shortages and soaring interest rates are compounding the situation for insurers and reinsurers by driving up the costs to rebuild, repair, and replace damaged property and infrastructure. We expect that to continue in 2024. This is, in part, why we need a comprehensive National Adaptation Strategy, and why we are ramping up our focus on investing in climate-resilient infrastructure built to withstand the impacts of present and future climate hazards.

Rising inflation and an alarming trend of increased vehicle theft will continue putting additional pressure on the insurance industry in 2024. With persistent inflation and vehicle thefts continuing to increase at staggering rates, we’re seeing a significant impact on our claims costs and other expenses. The industry will need to balance the need to increase premiums to cover these rising costs with our clients’ need to reduce expenses in an increasingly challenging economy.

In 2024, we will need to work even harder to meet the evolving expectations of our clients. They want trusted and personal advice along with seamless, high-quality digital experiences. They want more opportunities to do business with us online, but they also want to speak to us in person when they feel the need. Simply speaking, we need to ensure we’re there when and where they need us—online, in person, or on-the-go. Last year, we refocused our digital transformation efforts on building a robust omni-channel customer experience; that work will accelerate in 2024.

Next year, as an industry, we need to do more to meet our clients where they are, by offering alternative insurance solutions — such as embedded insurance (i.e., insurance offered for a product at the point of sale, as part of a digital purchase) — in rapidly evolving contexts.