The COVID-19 pandemic and resulting shutdown measures have thrust the global economy into a severe contraction. The World Bank recently predicted the global economy would shrink by 5.2% in 2020, marking the worst global recession since the Second World War. While the “Canadian economy appears to have avoided the most severe scenario,” according to the Bank of Canada, the country’s short- to medium-term economic future remains highly uncertain. What’s clear is that many Canadian businesses are struggling financially at this time, and they’re looking to their insurance partners for assistance.
“When the economy is slowing and customers face their top line contracting, having the right insurance partners is critical,” said Jonathon Reise (pictured), Director of Commercial Auto Underwriting at RSA Canada. “Some customers will look to complement their main operation and expand into new areas, taking advantage of emerging opportunities. Having a broker and market who can support them in that expansion, and have the expertise to help them go beyond what they’re currently doing, is going to be key. As well, they should be looking to work with a market that can provide creative risk control services and find workable solutions that don’t necessarily have an undue impact on their expenses. Every dollar they’re spending on maintaining and running their business has to count.”
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