In Partnership with
Risk mitigation for the ‘heartbeat of our economy’
Top risk navigation tips for SMEs to stay the course through pandemic-induced rocky terrain
David Williamson
Arch Insurance
Industry experts
Trevor Wall
Travelers Canada
Rob de Pruis
Insurance Bureau of Canada
Trevor Baldwin
Baldwin Risk Partners
David Williamson currently serves as vice president of programs at Arch Insurance Canada. He joined Arch in late 2009 to create the Property/Casualty Program Department. Previously, he was underwriting manager in the Program Department at AIG Canada and underwriting specialist at Intact Insurance Novex Commercial Group. Williamson began his insurance career at Sovereign General Insurance Company as a casualty underwriter. He has his CIP designation.
Arch Insurance
David Williamson
Trevor Wall is assistant vice president, small commercial at Travelers Canada. Based in Oakville, Ontario, he manages the company’s small commercial insurance business across Canada. Since joining the insurance industry in 2011, Wall has held a number of leadership roles in business development, program management and business transformation at Travelers Canada and the Dominion of Canada General Insurance Company. He is a graduate of the University of Western Ontario.
Travelers Canada
Trevor Wall
With over 25 years' experience in the insurance industry, Rob de Pruis has held various senior management roles in claims and risk management at some of Canada’s leading insurance companies. He joined IBC in May 2016 as insurance industry claims liaison, serving as the primary claims contact for the property and casualty insurance industry in the aftermath of the Fort McMurray wildfires. He was instrumental in communicating insurance information to those affected by this disaster.
In his current role as director, consumer and industry relations at IBC, de Pruis directs the activities of the company's Consumer Information Centre for the Western and Pacific regions. He liaises with IBC’s member companies and consumers to negotiate solutions to issues that affect both parties, and facilitates collaboration between the P&C insurance industry and relevant stakeholders on special projects and initiatives. De Pruis has also served as a guest lecturer at the Insurance Institute of Canada and MacEwan University.
IBC
Rob de Pruis
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partners
Trevor Baldwin
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Vault Plus Mortgage and Finance Consultancy
David Merison
“We have to remember that the insurance proposition is not a sprint, it’s a marathon. We need to be helping these businesses be set up for long-term success”
Rob De Pruis,
Insurance Bureau
of Canada
THE INSURANCE STORY has changed over the last two years. It used to be just a hardened market that insurance providers had to navigate. With an ongoing pandemic, however, the focus of the insurance narrative has shifted.
Prolonged COVID-induced economic fallout has impacted small to medium-sized enterprises across the country, so insurance providers have had to step up to the plate and not just offer an insurance game plan but provide an insurance road map to help guide businesses through the risk maze.
How best to help the SMEs most devastated by the prolonged pandemic, along with providing advice on the best risk coverage, was the topic tackled in the latest instalment of IB’s SME Executive Insight series.
“I think everybody’s heard of and knows about hospitalities [including] restaurants and bars. They [restaurants] are opening and closing and have limited capacities as well as additional costs with social distancing rules”
David Williamson, Arch insurance
“I think what’s interesting about underinsurance is that it’s not restricted to a segment or a customer profile. It’s a challenge that we’re all faced with and is an ongoing issue”
Trevor Wall,
Travelers Canada
Revenues for this event-based business have dropped as a result, sometimes to very minimal levels or even no revenue at all.
“Another area that's been hit extremely hard is kids’ sports camps and summer camps. These camps have had to close for summer sports and then opened and closed and then [had to] shift to virtual camps, virtual training and virtual workouts,” Williamson said.
He pointed out the impact COVID-19 has had on the hospitality sector, in particular hotels and restaurants.
“Traditionally, financial services have not been the first investment area for most private equity funds, but today, insurance is an attractive industry because it has been stress-tested”
Phil Trem,
MarshBerry
“The most resilient businesses, when we think about our current state right now, are really the businesses that before the pandemic took a very active approach to risk management,” he said.
“These are the businesses that the insurance company wants to provide coverage for because they’re taking such a proactive approach.”
2022 trends and challenges
Although hard to believe, the first fiscal quarter of 2022 is in sight, and this begs the question of just what lies ahead for the rest of the year in the insurance landscape.
The panellists agreed it was more than likely that continued inflation would impact insurance rates and lines of business moving forward.
Underinsured segments
The panellists acknowledged that there remain areas that leave SMEs vulnerable, in part, to insufficient insurance coverage.
“I think what's interesting about underinsurance is that it's not restricted to a segment or a customer profile. It’s a challenge that we’re all faced with and is an ongoing issue,” Wall said.
Cyber insurance, coverage for special weather events, hospitality coverage and condominium coverage leapt to mind for the panellists.
“When I think about the underinsurance portion, I think about the recent BC floods,” de Pruis said.
“We know that many condominiums are impacted, and overland flood coverage is optional. We also know that many of these buildings were built in flood hazard areas, and either they may not have been eligible for this coverage or that coverage just wasn’t something that the board chose to purchase."
Restaurants could also benefit from looking into changes to their risk management programs. Another area that could benefit from additional risk coverage is cryptocurrency.
“Cryptocurrency is becoming more and more prevalent all the time in our society,” Williamson said.
“At this point, there is no real market offering coverage. This is an area that is definitely underinsured and will have to be addressed by the insurance market moving forward.”
As Trevor Wall, AVP small commercial at Travelers Canada, pointed out at IB's roundtable meeting of industry experts, “these are challenging times for everybody. When we look at the small businesses in Canada, they are the heartbeat of our economy.”
Pandemic effects
Rob de Pruis, director, consumer and industry relations at IBC, agreed, saying “Canadian businesses are facing uncertain and challenging times. This pandemic has had some devasting financial impacts not only on the economy but also on these businesses."
One such impact is the ongoing reality that SMEs have been facing increased premiums. Capacity concerns rage on through some Canadian business sectors as well.
“We're definitely seeing the impacts of that [inflation] start to trickle through the Canadian economy at a rapid pace,” Wall said.
“December, for example, marked a 30-year high in inflation rates, and that poses a lot of potential challenges for small businesses across Canada.”
Other challenges are surfacing as well and directly impacting SMEs across the country.
“I think cyber insurance is one [of those challenges], especially for small businesses,” Williamson said.
“SMEs traditionally in the past have not really identified themselves as a target for cyber [attacks].
Impact of cybercrime during COVID-19
Estimated increase in the rate of cybercrime during the pandemic
Billion
12%
600%
Billion
$10.83
1%
Billion
$10.09
6%
Newcastle Permanent
Heritage Bank
Billion
$8.81
5%
People's Choice
Billion
$8.04
Teachers Mutual
14%
David Williamson, vice president programs at Arch Insurance, suggested it was valuable to look at different segments of the SME sector to help better paint an accurate fiscal picture.
“The first of the clients that we have really seen the impact on is our event and entertainment programs,” he said.
“With COVID-19 there have been no events, no social gatherings, weddings or conventions. They have not existed for two years."
“I think everybody’s heard of and knows about hospitalities [including] restaurants and bars," he said. "They [restaurants] are opening and closing and have limited capacities as well as additional costs with social distancing rules."
Positive impacts
While most of the smaller to mid-range businesses have suffered economic losses of varying scales throughout the pandemic, not all areas of business have been served an economic punch.
Wall highlighted that some trades, home improvement services and small contractors have fared very well through the pandemic, with business booming at times.
“Traditional professional services like lawyers and counsellors have also done very well for a variety of reasons throughout the pandemic,” he said.
“Another key area [that has done well] is the technology companies that have helped small businesses across the country adapt to leveraging technology and working online."
De Pruis added that the lines of business that had weathered better than others were those that were prepared for increased risks prior to the onslaught of COVID-19.
Read on
“As brokers, we need to communicate to these insureds about what their exposures are and how a ransomware or cyberattack can really affect their business and shut them down for a period of time.”
Insurance professionals are also keeping an eye on the trend towards continued commoditization of the SME space and are monitoring how increased interest rates will impact insurance coverage for their insureds as the year progresses.
Arch Insurance North America is part of a global insurer offering superior coverage and service. We participate in specialty lines where the talent and knowledge of our employees are a competitive differentiator. We serve North America from offices in the United States and Canada, providing superb coverage and claims handling through careful and diligent underwriting of risks and business-friendly solutions. With 20 years of operating history and strong financial ratings, our track record remains solid.
Find out more
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
Find out more
Taking care of our customers, our communities and each other
The Travelers Canada story began more than 130 years ago. A lot has changed in the world and the insurance industry since then, but our commitment to looking out for others has not. Taking care of our customers, communities and each other – or as we refer to it, the Travelers Promise – is at the heart of everything we do.
This includes providing our customers with the security they need to invest in their families and businesses and being there to help them recover after a disaster. It means caring for the communities in which we live and work through good times and bad. And it’s about making Travelers a great place to work.
Our 1,400 employees across Canada work hard to take care of our customers, our communities and each other. It’s a responsibility and privilege we don’t take lightly, and one that’s at the heart of the Travelers Promise we make with every policy we sell – to be there when you need us.
Find out more
“I think everybody’s heard of and knows about hospitalities [including] restaurants and bars. They [restaurants] are opening and closing and have limited capacities as well as additional costs with social distancing rules”
David Williamson,
Arch insurance
In Partnership with
Risk mitigation for the ‘heartbeat of our economy’
Top risk navigation tips for SMEs to stay the course through pandemic-induced rocky terrain
Read on
Trevor Baldwin
Baldwin Risk Partners
Rob de Pruis
Insurance Bureau
of Canada
David Williamson
Arch Insurance
Trevor Wall
Travelers Canada
Industry experts
THE INSURANCE STORY has changed over the last two years. It used to be just a hardened market that insurance providers had to navigate. With an ongoing pandemic, however, the focus of the insurance narrative has shifted.
Prolonged COVID-induced economic fallout has impacted small to medium-sized enterprises across the country, so insurance providers have had to step up to the plate and not just offer an insurance game plan but provide an insurance road map to help guide businesses through the risk maze.
How best to help the SMEs most devastated by the prolonged pandemic, along with providing advice on the best risk coverage, was the topic tackled in the latest instalment of IB’s SME Executive Insight series.
As Trevor Wall, AVP small commercial at Travelers Canada, pointed out at IB's roundtable meeting of industry experts, “these are challenging times for everybody. When we look at the small businesses in Canada, they are the heartbeat of our economy.”
Pandemic effects
Rob de Pruis, director, consumer and industry relations at IBC, agreed, saying “Canadian businesses are facing uncertain and challenging times. This pandemic has had some devasting financial impacts not only on the economy but also on these businesses."
One such impact is the ongoing reality that SMEs have been facing increased premiums. Capacity concerns rage on through some Canadian business sectors as well.
David Williamson, vice president programs at Arch Insurance, suggested it was valuable to look at different segments of the SME sector to help better paint an accurate fiscal picture.
“The first of the clients that we have really seen the impact on is our event and entertainment programs,” he said.
“With COVID-19 there have been no events, no social gatherings, weddings or conventions. They have not existed for two years."
Revenues for this event-based business have dropped as a result, sometimes to very minimal levels or even no revenue at all.
“Another area that's been hit extremely hard is kids’ sports camps and summer camps. These camps have had to close for summer sports and then opened and closed and then [had to] shift to virtual camps, virtual training and virtual workouts,” Williamson said.
He pointed out the impact COVID-19 has had on the hospitality sector, in particular hotels and restaurants.
“I think everybody’s heard of and knows about hospitalities [including] restaurants and bars," he said. "They [restaurants] are opening and closing and have limited capacities as well as additional costs with social distancing rules."
Positive impacts
While most of the smaller to mid-range businesses have suffered economic losses of varying scales throughout the pandemic, not all areas of business have been served an economic punch.
Wall highlighted that some trades, home improvement services and small contractors have fared very well through the pandemic, with business booming at times.
“Traditional professional services like lawyers and counsellors have also done very well for a variety of reasons throughout the pandemic,” he said.
“Another key area [that has done well] is the technology companies that have helped small businesses across the country adapt to leveraging technology and working online."
De Pruis added that the lines of business that had weathered better than others were those that were prepared for increased risks prior to the onslaught of COVID-19.
“The most resilient businesses, when we think about our current state right now, are really the businesses that before the pandemic took a very active approach to risk management,” he said.
“These are the businesses that the insurance company wants to provide coverage for because they’re taking such a proactive approach.”
2022 trends and challenges
Although hard to believe, the first fiscal quarter of 2022 is in sight, and this begs the question of just what lies ahead for the rest of the year in the insurance landscape.
The panellists agreed it was more than likely that continued inflation would impact insurance rates and lines of business moving forward.
“We're definitely seeing the impacts of that [inflation] start to trickle through the Canadian economy at a rapid pace,” Wall said.
“December, for example, marked a 30-year high in inflation rates, and that poses a lot of potential challenges for small businesses across Canada.”
Other challenges are surfacing as well and directly impacting SMEs across the country.
“I think cyber insurance is one [of those challenges], especially for small businesses,” Williamson said.
“SMEs traditionally in the past have not really identified themselves as a target for cyber [attacks].
“As brokers, we need to communicate to these insureds about what their exposures are and how a ransomware or cyberattack can really affect their business and shut them down for a period of time.”
Insurance professionals are also keeping an eye on the trend towards continued commoditization of the SME space and are monitoring how increased interest rates will impact insurance coverage for their insureds as the year progresses.
Underinsured segments
The panellists acknowledged that there remain areas that leave SMEs vulnerable, in part, to insufficient insurance coverage.
“I think what's interesting about underinsurance is that it's not restricted to a segment or a customer profile. It’s a challenge that we’re all faced with and is an ongoing issue,” Wall said.
Cyber insurance, coverage for special weather events, hospitality coverage and condominium coverage leapt to mind for the panellists.
“When I think about the underinsurance portion, I think about the recent BC floods,” de Pruis said.
“We know that many condominiums are impacted, and overland flood coverage is optional. We also know that many of these buildings were built in flood hazard areas, and either they may not have been eligible for this coverage or that coverage just wasn’t something that the board chose to purchase."
Restaurants could also benefit from looking into changes to their risk management programs. Another area that could benefit from additional risk coverage is cryptocurrency.
“Cryptocurrency is becoming more and more prevalent all the time in our society,” Williamson said.
“At this point, there is no real market offering coverage. This is an area that is definitely underinsured and will have to be addressed by the insurance market moving forward.”
Insurance moves
With so much at stake and a market that's constantly changing, it's up to insurance providers collectively to guide SMEs down the best risk mitigation path.
“We have to remember that the insurance proposition is not a sprint, it’s a marathon. We need to be helping these businesses be set up for long-term success,” de Pruis said.
“You need loyalty and a consistent approach."
When it comes to valuable traits that insurance providers can offer their insureds, topping the list is actively keeping the channels of communication open.
“Communication is key, not only from the insured to the broker but from the broker to the insured,” Williamson said.
Trevor Wall is assistant vice president, small commercial at Travelers Canada. Based in Oakville, Ontario, he manages the company’s small commercial insurance business across Canada. Since joining the insurance industry in 2011, Wall has held a number of leadership roles in business development, program management and business transformation at Travelers Canada and the Dominion of Canada General Insurance Company. He is a graduate of the University of Western Ontario.
Travelers Canada
Trevor Wall
David Williamson currently serves as vice president of programs at Arch Insurance Canada. He joined Arch in late 2009 to create the Property/Casualty Program Department. Previously, he was underwriting manager in the Program Department at AIG Canada and underwriting specialist at Intact Insurance Novex Commercial Group. Williamson began his insurance career at Sovereign General Insurance Company as a casualty underwriter. He has his CIP designation.
Arch Insurance
David Williamson
With over 25 years' experience in the insurance industry, Rob de Pruis has held various senior management roles in claims and risk management at some of Canada’s leading insurance companies. He joined IBC in May 2016 as insurance industry claims liaison, serving as the primary claims contact for the property and casualty insurance industry in the aftermath of the Fort McMurray wildfires. He was instrumental in communicating insurance information to those affected by this disaster.
In his current role as director, consumer and industry relations at IBC, de Pruis directs the activities of the company's Consumer Information Centre for the Western and Pacific regions. He liaises with IBC’s member companies and consumers to negotiate solutions to issues that affect both parties, and facilitates collaboration between the P&C insurance industry and relevant stakeholders on special projects and initiatives. De Pruis has also served as a guest lecturer at the Insurance Institute of Canada and MacEwan University.
IBC
Rob de Pruis
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Tellus in penatibus condimentum malesuada ante vulputate nisi, arcu leo. Amet urna sapien purus vestibulum fermentum a. Cursus metus massa donec sed varius. Nunc enim sit morbi lacus, molestie et nunc. Nullam sed facilisi id malesuada. Ante purus velit, quam scelerisque ultrices scelerisque donec.
Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partner
Trevor Baldwin
In Partnership with
Risk mitigation for the ‘heartbeat of our economy’
Top risk navigation tips for SMEs to stay the course through pandemic-induced rocky terrain
Read on
Trevor Baldwin
Baldwin Risk Partners
Rob de Pruis
Insurance Bureau of Canada
David Williamson
Arch Insurance
Trevor Wall
Travelers Canada
Industry experts
executive insights
Top
Insight Leaders
Overview
General Stats
Insights
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Velit egestas vel ornare pellentesque ridiculus. Mauris tempor augue quis mattis suspendisse feugiat commodo posuere. Faucibus massa adipiscing nullam elit, ac vel accumsan. Phasellus eget ac dignissim fermentum ac placerat elit, metus. Nulla porttitor ante egestas molestie quis quam. Pharetra magna sit mauris tellus gravida rutrum libero sit. Justo orci cras euismod proin massa lorem ut. In non tellus phasellus faucibus ullamcorper nullam odio dui et.
Baldwin Risk Partners
Trevor Baldwin
With over 25 years' experience in the insurance industry, Rob de Pruis has held various senior management roles in claims and risk management at some of Canada’s leading insurance companies. He joined IBC in May 2016 as insurance industry claims liaison, serving as the primary claims contact for the property and casualty insurance industry in the aftermath of the Fort McMurray wildfires. He was instrumental in communicating insurance information to those affected by this disaster.
In his current role as director, consumer and industry relations at IBC, de Pruis directs the activities of the company's Consumer Information Centre for the Western and Pacific regions. He liaises with IBC’s member companies and consumers to negotiate solutions to issues that affect both parties, he and facilitates collaboration between the P&C insurance industry and relevant stakeholders on special projects and initiatives. De Pruis has also served as a guest lecturer at the Insurance Institute of Canada and MacEwan University.
IBC
Rob de Pruis
David Williamson currently serves as vice president of programs at Arch Insurance Canada. He joined Arch in late 2009 to create the Property/Casualty Program Department. Previously, he was underwriting manager in the Program Department at AIG Canada and underwriting specialist at Intact Insurance Novex Commercial Group. Williamson began his insurance career at Sovereign General Insurance Company as a casualty underwriter. He has his CIP designation.
Arch Insurance
David Williamson
Trevor Wall is assistant vice president, small commercial at Travelers Canada. Based in Oakville, Ontario, he manages the company’s small commercial insurance business across Canada. Since joining the insurance industry in 2011, Wall has held a number of leadership roles in business development, program management and business transformation at Travelers Canada and the Dominion of Canada General Insurance Company. He is a graduate of the University of Western Ontario.
Travelers Canada
Trevor Wall
Share
Insurance moves
With so much at stake and a market that's constantly changing, it's up to insurance providers collectively to guide SMEs down the best risk mitigation path.
“We have to remember that the insurance proposition is not a sprint, it’s a marathon. We need to be helping these businesses be set up for long-term success,” de Pruis said.
“You need loyalty and a consistent approach."
When it comes to valuable traits that insurance providers can offer their insureds, topping the list is actively keeping the channels of communication open.
“Communication is key, not only from the insured to the broker but from the broker to the insured,” Williamson said.
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of Canadian-based SMEs were using data encryption to safeguard their businesses as of 2017
Billion
42%
12%
of businesses based in Canada reported between one and five cyber breaches as of 2017
Billion
27%
12%
Source: Cloudwards
Canadian SMEs are re-opening at lower numbers due to COVID-19
10% were categorized as being closed permanently
40% were listed as being closed on a temporary basis
Only 50% of the small business in retail, and hospitality food services that had shut in May 2021 opened their doors again in September 2021
The percentage of businesses re-opening in October 2021 was down by 6.3% from the month before
909,418
Source: Statistics Canada
active businesses in
July 2021
901,794
active businesses in
Oct 2021
6.3%
fewer businesses reopened in Oct 2021 than in Sept 2021
Just 50%
of SMEs in retail and hospitality food services reopened in Sept 2021 after shutting in May
40%
were listed as being closed on a temporary basis
10%
were categorized as being closed permanently
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Underinsured segments
The panellists acknowledged that there remain areas that leave SMEs vulnerable, in part, to insufficient insurance coverage.
“I think what's interesting about underinsurance is that it's not restricted to a segment or a customer profile. It’s a challenge that we’re all faced with and is an ongoing issue,” Wall said.
Cyber insurance, coverage for special weather events, hospitality coverage and condominium coverage leapt to mind for the panellists.
“SMEs traditionally in the past have not really identified themselves as a target for cyber [attacks],” he pointed out.
“As brokers, we need to communicate to these insureds about what their exposures are and how a ransomware or cyberattack can really affect their business and shut them down for a period of time.”
Insurance professionals are also keeping an eye on the trend towards continued commoditization of the SME space and are monitoring how increased interest rates will impact insurance coverage for their insureds as the year progresses.
2022 trends and challenges
Although hard to believe, the first fiscal quarter of 2022 is in sight, and this begs the question of just what lies ahead for the rest of the year in the insurance landscape.
The panellists agreed it was more than likely that continued inflation would impact insurance rates and lines of business moving forward.
“We're definitely seeing the impacts of that [inflation] start to trickle through the Canadian economy at a rapid pace,” Wall said.
“December, for example, marked a 30-year high in inflation rates, and that poses a lot of potential challenges for small businesses across Canada.”
Other challenges are surfacing as well and directly impacting SMEs across the country.
“I think cyber insurance is one [of those challenges], especially for small businesses,” Williamson said.
“Traditional professional services like lawyers and counsellors have also done very well for a variety of reasons throughout the pandemic,” he said.
“Another key area [that has done well] is the technology companies that have helped small businesses across the country adapt to leveraging technology and working online."
De Pruis added that the lines of business that had weathered better than others were those that were prepared for increased risks prior to the onslaught of COVID-19.
“The most resilient businesses, when we think about our current state right now, are really the businesses that before the pandemic took a very active approach to risk management,” he said.
“These are the businesses that the insurance company wants to provide coverage form because they’re taking such a proactive approach.”
Pandemic effects
Rob De Pruis, director, consumer and industry relations at IBC, agreed, saying “Canadian businesses are facing uncertain and challenging times. This pandemic has had some devasting financial impacts not only on the economy but also on these businesses."
One such impact is the ongoing reality that SMEs have been facing increased premiums. Capacity concerns rage on through some Canadian business sectors as well.
David Williamson, vice president programs at Arch insurance, suggested it was valuable to look at different segments of the SME sector to help better paint an accurate fiscal picture.
“The first of the clients that we have really seen the impact on is our event and entertainment programs,” he said.
“With COVID-19 there have been no events, no social gatherings, weddings or conventions. They have not existed for two years."
Revenues for this event-based business have dropped as a result, sometimes dropping to very minimal levels or even no revenue at all.
“Another area that's been hit extremely hard is kids’ sports camps and summer camps. These camps have had to close for summer sports and then opened and closed and then [had to] shift to virtual camps, virtual training and virtual workouts,” Williamson said.
He pointed out the impact COVID-19 has had on the hospitality sector, in particular hotels and restaurants.
“I think everybody’s heard of and knows about hospitalities [including] restaurants and bars," he said. "They [restaurants] are opening and closing and have limited capacities as well as additional costs with social distancing rules."
Positive impacts
While most of the smaller to mid-range businesses have suffered economic losses of varying scales throughout the pandemic, not all areas of business have been served an economic punch.
Wall highlighted that some trades, home improvement services and small contractors have fared very well through the pandemic, with business booming at times.
THE INSURANCE STORY has changed over the last two years. It used to be just a hardened market that insurance providers had to navigate. With an ongoing pandemic, however, the focus of the insurance narrative has shifted.
Prolonged COVID-induced economic fallout has impacted small to medium-sized enterprises across the country, so insurance providers have had to step up to the plate and not just offer an insurance game plan but provide an insurance road map to help guide businesses through the risk maze.
How best to help the SMEs most devastated by the prolonged pandemic, along with providing advice on the best risk coverage, was the topic tackled in the latest instalment of IB’s SME Executive Insight series.
As Trevor Wall, AVP small commercial at Travelers Canada, pointed out at IB's roundtable meeting of industry experts, “these are challenging times for everybody. When we look at the small businesses in Canada, they are the heartbeat of our economy.”
“I think everybody’s heard of and knows about hospitalities [including] restaurants and bars. They [restaurants] are opening and closing and have limited capacities as well as additional costs with social distancing rules”
David Williamson,
Arch insurance
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Estimated cost of all cybercrime damages in 2021
6 trillion
Underinsured SMEs remain increasingly vulnerable to cyberattacks
Source: Cloudwards
The estimated increase in the rate of Cybercrime during the COVID-19 pandemic/The financial Sector-Sector that suffered the most economic losses
Billion
600%
12%
of Canadian-based SMEs were using data encryption to safeguard their businesses as of 2017
Billion
42%
12%
of businesses based in Canada reported between one and five cyber breaches as of 2017
Billion
27%
12%
Newcastle Permanent
Billion
$10.83
1%
Heritage Bank
Billion
$10.09
6%
People's Choice
Billion
$8.81
5%
Teachers Mutual
Billion
$8.04
14%
Sector that suffered the most economic losses due to cybercrime
Financial sector
600%
Estimated increase in the rate of cybercrime during the pandemic
600%
Impact of cybercrime during COVID-19
Billion
Estimated increase in the rate of cybercrime during the pandemic
12%
of Canadian-based SMEs were using data encryption to safeguard their businesses as of 2017
Billion
42%
12%
of businesses based in Canada reported between one and five cyber breaches as of 2017
Billion
27%
12%
Newcastle Permanent
Billion
$10.83
1%
Heritage Bank
Billion
$10.09
6%
People's Choice
Billion
$8.81
5%
Teachers Mutual
Billion
$8.04
14%
Source: Cloudwards
Estimated cost of all cybercrime damages in 2021
6 trillion