Curiosity and flexibility: what it takes to grow in the manufacturing sector

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Intact Insurance urges brokers to capture more of the manufacturing market by exploring these businesses’ unique risks, understanding the comprehensive coverage they need, and embracing the diversity of the industry

FOR INSURANCE PURPOSES, services, retail stores, and apartment buildings are fairly clear-cut. After being in the business for a while, brokers and insurers alike know what these operations need when it comes to coverage. But what does manufacturing look like? From an Ontario-based distiller with Canada-wide exports, to a commercial baker that exports to the US, to a quickly growing semi-conductor manufacturer, the sector is diverse, complex, and growing. Manufacturing is a mainstay of Canada’s economy with exponential potential for growth. It accounts for approximately 10 percent of Canada’s total GDP and 68 percent of merchandise exports and provides over 1.7 million full-time jobs across the country. Citing organic growth (18 percent) and geopolitics (18 percent) as the main drivers, just shy of three-quarters of Canadian manufacturers surveyed expect to expand their reach over the next three years. At Intact Insurance, the plan is to support Canada’s vibrant sectors. “It’s an area where we want to grow; there’s great potential for us to capture more of this market,” says Rosalind Staples-Simpson, senior vice president, commercial lines at Intact. “It’s an exciting area.”

Intact Insurance is Canada’s largest home, auto, and business insurance company, the choice of more than four million consumers. Its coast-to-coast presence and its strong relationship with insurance brokers mean the company can provide the outstanding service, comfort, and continuity customers deserve. Intact Insurance is a member company of Intact Financial Corporation (TSX: IFC), the largest provider of property and casualty insurance in Canada and a leading provider of specialty insurance in North America.

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“What’s important to the customer should be reflected in the insurance policy, and what’s important to them likely goes beyond property, contents, and liability. Discuss business interruption scenarios, contingency plans, and extra coverages and endorsements their unique operation may require”

ROSALIND STAPLES-SIMPSON, INTACT INSURANCE

As the market grows, brokers and insurers must understand the manufacturing process of each business they work with – and many of these processes aren’t obvious. Staples-Simpson recommends getting curious: What makes a manufacturer successful? Who are their customers? Where do they ship their product? How long have they been operating; how quickly are they growing? What are their inputs and how and where are they sourced and stored? With many businesses reporting growth plans, don’t forget to dig into their business objectives as well. For example, are they planning to try something new soon – and might they need extra coverage in case that goes wrong? “What’s important to the customer should be reflected in the insurance policy, and what’s important to them likely goes beyond property, contents, and liability,” Staples-Simpson says. “Discuss business interruption scenarios, contingency plans, and extra coverages and endorsements their unique operation may require.”

With manufacturing, brokers play a critical role in understanding the customer’s unique needs and how to source them the best coverage. Intact feels the same way. Cultivating a comprehensive understanding of the sophisticated processes behind any given product allows a risk to be underwritten well. At Intact, seasoned commercial lines underwriters know they can’t assume a new manufacturing quote is anything like the last one they worked on. They welcome the challenge of learning across industries and businesses and applying critical thinking to their decision-making. “We could be talking about something very simple and small with limited inputs that’s produced quickly, to something large with a significant process that is potentially hazardous,” says Staples-Simpson. “Because of the depth of our commercial lines expertise, the diversity of manufacturing excites us and lets our underwriters find tailored solutions across the sector.”

Ultimately, ensuring a customer’s coverage reflects their business reality and priorities is the best thing brokers can do. Covering those bases means seeking out insurers who provide market-leading options, and at Intact, providing comprehensive coverage for every business is paramount. With deep commercial lines expertise and a drive to deliver solutions for every customer, Intact brings to the table a trusted brand and a willingness to innovate. Building on the significant amount of manufacturing Intact already writes, the insurer leads the pack when it comes to products, expertise, and claim experience. Intact’s package offering for commercial customers spans entry level to the most comprehensive – EDGE Complete – and grows with the customer, with any specific coverages that fall outside of that package or something the customer needs a higher limit on looked at on an individualized extension. It’s broad, dependable, and scalable – delivering what manufacturing customers need.

“We have the capabilities and are perfectly comfortable dealing with customers small, large, or in between,” Staples-Simpson says. Intact’s expertise in complex commercial claims also serves as a significant differentiator. Manufacturing claims can put the life of a business on the line. When a factory has a fire or its equipment breaks down, it’s not just a case of writing a cheque. It’s a complicated event getting the business back on track, and insurers need an effective triage and assignment process that connects the customer with a qualified adjuster. “You need a manufacturing claim to go to someone who lives and breathes manufacturing so that they can effectively support the customer from the first touchpoint,” Staples-Simpson explains. “Our adjusters understand the sector, and they take pains to understand each individual business and its priorities. They look at creative ways to get production back on track whether that means partial rebuilds, relocation, or even leveraging competitors.” Knowing complex manufacturing claims need multi-disciplinary teams that may include structural engineers, accountants, cost consultants, and lawyers, Intact has built out that expertise in-house. The insurer rounds out its comprehensive approach with the largest risk control team in Canada. Comprised of more than 100 professionals, the team delivers sophisticated mitigation via hazard assessments and advice such as support with contingency plan development. While the risk control consultant doesn’t visit every client Intact writes, for higher hazard or higher total insured value, “The risk control team can provide recommendations to the customer on how to operate more safely and mitigate their chance of loss on the premises. It’s a great value-added service from an experienced and dedicated team,” Staples-Simpson says.

“You need a manufacturing claim to go to someone who lives and breathes manufacturing so that they can effectively support the customer from the first touchpoint. Our adjusters understand the sector, and they take pains to understand each individual business and its priorities

The growth opportunity the manufacturing sector presents means brokers too are expressing increased interest in building their manufacturing client base. For those actively going after the sector, Intact is standing by as a valuable partner. From resources on insurance products tailored to the sector to help brokers better understand them and sell sheets to help build the skillset necessary to sell to these customers, to a Manufacturing Essentials course in its Commercial Lines Intermediate Pathway broker education program, Intact is well positioned to help brokers ramp up their book of business.

“We’re competitive in the space, we want to grow, and we’ve got the resources to help our brokers grow,” Staples-Simpson says. “We understand the manufacturing customer, and we’re there to help them – when they’re starting out, as they grow, and, in a claims situation, when they need us the most.”

Stepping up in the space

Leveraging Intact’s deep commercial lines expertise

Published October 21, 2024

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Manufacturing by the numbers

Manufacturing accounts for approximately $174 billion (10%) of Canada’s total GDP

Manufacturers export more than $354 billion each year, representing 68% of Canada’s merchandise exports

The industry provides over 1.7 million full-time jobs across the country

Almost three-quarters of Canadian manufacturers (72%) say that over the next three years they expect their companies’ earnings to increase between 2.5% and 9.9% and anticipate increasing headcount by up to 10%

The greatest threats to growth prospects are economic factors (18%), cybersecurity (16%), and talent (16%)

ROSALIND STAPLES-SIMPSON, INTACT INSURANCE

Aligning on opportunity

a commercial bakery that produces bread and exports it across Canada and the US a manufacturer of coffee, tea, spices, and herbs a kitchenware manufacturer a custom kitchen cabinet manufacturer a fast-growing craft brewing operation a manufacturer of vinyl records a processing and wholesale of frozen pasta products business a manufacturer of movie props a manufacturer of innovative residential electrical submetering equipment that controls the flow of electricity to individual units to reduce energy waste a manufacturer of metal products, including storage bins, baskets, and racks a manufacturer specializing in heating equipment

Manufacturing risks

How diverse is manufacturing? Consider these risks, recently underwritten by Intact, that fall under the manufacturing umbrella:

Manufacturing risks

Manufacturing by the numbers

Manufacturing risks

Manufacturing by the numbers