January 9, 2018 07:00
Louis-Thomas Labbé | Photo : Réjean Meloche
There are several important issues to watch out for when determining the coverage for a company of average size. The two most important are cyber risks, and natural disasters.
It is important to discuss these risks with the business, despite that some may think that they will never be affected. «Companies can no longer ignore cyber risks, one hears of more and more. Cybercrime and cyber investigation make their place on the market «, said Mathieu Gagnon, broker and vice president at Vézina Assurances.
Dean Grigoruk, vice-president, Quebec and Atlantic provinces at the NAC, says. «We can compare the situation of insurance against cyber risks to the protection officers and directors 20 years ago. The companies did not see as it could apply to their situation. Today, it is unthinkable not to protect themselves of this protection. We do not see a day without an attack. In this regard, the industry generally has outreach work to do. «
Louis-Thomas Labbé, president and CEO of GPL Canada, argues that a cyber-attack proves if the product proposed by the broker is good. «The insurance cyber and is very sharp. The real problem is after an attack. It is at this time that we see if the product is good and if the computer systems are sound. «
In addition, the increase in the number of natural disasters is significant enough for that brokers and insurers mention as one of the issues to watch. «We saw it with the hurricanes of the last few months. The total costs of the damages are enormous, both for individuals and for businesses, » says Mr. Labbé.
In addition, the medium-sized companies who often have international ambitions, the risks that they incur outside of the country are to be considered.
«Insurers have to offer products and services that can adapt to the changes and the growth constants of the medium-sized companies, particularly when these businesses are growing outside of the country. The multinational companies of average size have unique risks arising from their international activities and the management of their supply chains, » says for its part Janik Lachance, assistant vice-president, director, financial risks and major accounts at Chubb.
The international dimension of business of mid-market raises an important need for brokers and insurers. They must have a thorough knowledge of the markets where these companies are located in order to adequately protect.
«A practice which may be perfectly legal here may be illegal elsewhere, confirms Mr. Labbé. It is necessary to consider the laws of other countries for exporting companies. It is for this reason that it is important to have a team for the identification and assessment of risks. »