Why is Intact the best choice for non-standard risks?

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Deep expertise, strong broker partnerships, and a solution-oriented approach set Intact Insurance apart in the growing market

CANADIAN BUSINESSES are continuously pushing the boundaries of innovation and creativity. That often means they are approaching brokers with new and different business models that may not fit the traditional insurance mould. To address this growing market, Intact Insurance created a dedicated team in Specialty Solutions that emphasizes working collaboratively with brokers across Canada to design a solution that focuses on responding to clients’ unique needs. “The non-standard program at Intact was born out of a desire to service specific segments and client sets that weren’t able to find a solution in personal and commercial lines groups,” explained Darren Gordon, director of non-standard risks at Intact Insurance.

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 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. For news on Intact, please visit www.intactfc.com.

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“There’s … a lot of gray [in the non-standard market.] What makes our underwriters so successful is that we’re solution-oriented, and we give them the confidence to navigate that gray space”

Darren Gordon, Intact Insurance

At the core of these segments are personal and commercial rental risks, as well as vacant properties. Non-standard risks may cover properties with deficiencies in construction, occupancy, protection, and/or exposure (COPE); risks with loss experience; or classes of business that fall outside traditional market options. Gordon spoke to Insurance Business about how Intact is defining itself as a key player in non-standard risks. “The standard market can be black and white. But there’s also a lot of gray, and that’s where the non-standard market comes into play,” he said. “What makes our underwriters so successful is that we’re solution-oriented, and we give them the confidence to navigate that gray space.”

The non-standard risk appetite at Intact Insurance has expanded to include hospitality classes that fall outside the standard market, such as restaurants, hotels, motels, and older commercial buildings with COPE deficiencies or maintenance issues. One of the cornerstones of Intact’s approach to non-standard risks is its dedicated team of Specialty Solutions underwriters. “The key to success in non-standard risks is to be focused and have a deep expertise,” said Gordon. Intact’s ability to leverage global resources while maintaining expertise in the Canadian market also distinguishes it in the market. With its global specialty business spanning Canada, the US, the UK, and Europe, Intact can tap into a well of underwriting, risk control, and claims capabilities to serve non-standard risks.

At the same time, Gordon acknowledged that non-standard risks are inherently tied to the local landscape. Non-standard risks is a domain where an awareness of the nuances of specialized coverage is paramount. With 40 underwriters in offices across Canada, Intact’s localized expertise in non-standard risks ensures brokers and their clients will have the best support in navigating regional complexities. “It is important in the non-standard risks space to have someone locally who understands the geography, weather patterns, socio-economic dynamics in certain neighbourhoods, and the exposures that come with them,” said Gordon. “We have specialists in non-standard risks that have been with us for over a decade. As we’ve grown, we have brought in more underwriters who have benefited from the experience of our senior team members.” “We also have good mentorship from within Intact to train underwriters to understand the customer and the ins and outs of non-standard risks.”

Collaboration is another critical aspect of Intact’s strategy in the non-standard risks space. Gordon stressed the importance of aligning with brokers to understand clients’ exposures and find the best solutions. “The key to any successful relationship [between carriers and brokers] is education and the ability to explain what you can and can’t do,” he said. “Even a decline can be a relationship builder.” Brokers have become more specialized as customers’ needs have evolved, leading the industry to transition from standard risks to a more specialized market. Helping brokers build that specialized knowledge and understand the evolving nature of non-standard risks, as well as managing expectations, remains core to Intact’s approach to collaboration, according to Gordon.

“The non-standard program at Intact was born out of a desire to service specific segments and client sets that weren’t able to find a solution in personal and commercial lines groups”

Darren Gordon, Intact Insurance

Changing market dynamics and increased customer demand have resulted in the expansion and diversification of the non-standard market. “The box is expanding and contracting, region to region, even province to province,” said Gordon. There are a multitude of factors influencing the standard markets, what they can bear, and what they’ll push into the non-standard space.” The evolving industry landscape, combined with inflation, catastrophic events, and changes in the economy and interest rates, has increased customer demand for insurance coverage.

Gordon encouraged brokers to approach Intact with new opportunities. Instead of closing a door to these risks, Intact aims to make a home for them, he said. “We address gaps in personal and commercial lines, handling risks such as vacancies, new or undeveloped hospitality businesses, or those with loss frequency issues. We rehabilitate these risks to an acceptable state, enabling them to be returned to the standard market,” Gordon added.

What are the keys to success in non-standard risks?

Global capabilities, local expertise – the Intact advantage

Published May 21, 2024

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What are examples of non-standard risks?

Risks with prior loss history, including frequency or large losses

Older buildings requiring updates and maintenance

Rentals – dwellings, condo units, short-term rentals, student/rooming houses

Restaurants with fewer than 5 years in operation

Hotels/motels with short- and long-term tenants, including subsidized housing

Manufacturing and processing risks with operational deficiencies

Vacant commercial and residential buildings

How does Intact build broker relationships?

Non-standard risks: an evolving landscape

Intact’s approach to non-standard risks

Local expertise

Collaboration with brokers

Solutions-oriented mindset

Additionally, Intact offers vacancy options for extended periods of vacancy, transferring them back to the appropriate teams once occupied. It also supports risks other specialty lines may not cover, such as staff accommodations or older buildings, and serves as a gap filler for Intact customers across various scenarios. By focusing on specific segments, leveraging local expertise, and fostering strong partnerships with brokers, Intact can provide tailored solutions for non-standard risks.

How does Intact build broker relationships?

Non-standard risks: an evolving landscape

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