A man who instinctively jumped out of the way of a U-Haul truck and saw his fiancée, who was walking beside him, get struck and killed by the vehicle was “involved in” the accident, and thus entitled to accident benefits for his psychological injuries, a tribunal has ruled.
The man’s auto insurer, Coachman Insurance Company, denied his claim on the basis that the truck had not touched him, and the psychological injuries he suffered were based on seeing his fiancée get killed.
That made him simply a witness to the scene, the insurer argued, and so he wasn’t really “involved in” the motor vehicle accident.
Coachman “submits that the dominant feature of the [claimant’s] psychological injuries was the act of witnessing his fiancée [being] struck and killed, and the aftermath. I disagree,” wrote Ontario Licence Appeal Tribunal vice chair Trina Morissette in a decisionreleased last week.
“In my view, the dominant feature is the U-Haul truck that caused the [claimant] to take evasive action to avoid injury. I also find it was reasonable for the [claimant] to believe his life was in danger by the approaching vehicle, which, only seconds later, collided with and killed his fiancée who was beside him.”
Jaspreet Dhaliwal and his fiancée were walking together on the sidewalk on Mar. 8, 2025, when a U-Haul truck suddenly drove up onto the curb towards the couple. Dhaliwal jumped out of the way.
But the truck hit his fiancée, who was pushed into a storefront window and killed on impact. Emergency personnel attended the scene, and an ambulance transported Dhaliwal to hospital.
The couple had been in a committed relationship for three years prior to the incident. They were engaged to be married in July 2024, moved in together in September 2024, and were to be married in July 2025.
At an Examination Under Oath two months after the incident, Dhaliwal testified the truck missed hitting him by approximately one metre. The vehicle did not hit him, he did not fall to the ground, and was not physically injured.
His accident benefits claim was for an “acute psychological and emotional fragility,” the LAT decision states, “which he submits he continues to manifest since the accident.”
In denying Dhaliwal benefits, Coachman relied on several LAT decisions that found claimants who witness an accident are “not involved in” the accident, even if there is a fatality. In these decisions, the tribunal found a claimant has to be physically injured to be “involved” in the accident.
LAT rejected this argument, because the psychological pain was caused by fearing for his own life, and not simply the trauma of witnessing what happened to his fiancée.
“I agree with [Dhaliwal] that he was not a simple witness to the accident nor did his involvement arise from simply witnessing the aftermath of the accident,” Morrissette wrote. He “was within mere feet of the approaching U-Haul truck and had to physically jump out the vehicle’s path to avoid possibly being struck.
“In my view, ‘but for’ the approaching vehicle, the situation would not have required [Dhaliwal] to take immediate action to evade the approaching vehicle. Had [he] not jumped out of the way, he could have sustained physical injuries, or worse. In my view, [Dhaliwal] was engaged as a participant, hence, he was ‘involved in’ the accident.”
The specialty risks brokers are being asked to place today look nothing like they did even a decade ago. Energy transition, geopolitical volatility, regulatory change, and supply chain disruption are intensifying exposures across industries, and businesses require solutions that meet their needs.
This environment is creating more demand for insurers with deeper expertise, stronger capacity, and the ability to respond to increasingly specialized needs, says Paul Lucarelli, Senior Vice-president and President, Specialty Solutions, Canada, at Intact.
“Specialty insurance is shaped by complexity and evolving trends that are unique to specific industries or customers,” he says. “Customers are looking for bespoke solutions to address these emerging trends and a carrier that understands the unique pressure points for their businesses.”
Built for complex risks, at scale
Intact has been building strong momentum in the specialty space for over a decade. What began as a natural evolution of commercial lines with four specialty verticals has grown into a global specialty carrier, and as a line of business, represents 27% of Intact’s $25.1 billion annual operating direct premiums written.
Today, Intact’s Global Specialty Lines business spans more than 20 verticals across Canada, the U.S., Europe, and the UK, with a multinational network that reaches more than 150 territories. In Canada, that gives brokers access to end-to-end solutions for businesses in niche sectors – from construction, energy, and renewables to financial and professional lines, technology, surety, and life sciences.
“Broker and customer partners have confidence in our execution, financial stability, and global capabilities,” says Lucarelli. “Local, dedicated risk control expertise and in-house claims teams with deep technical strength are all part of what we deliver.”
A growth story built on discipline
Intact’s specialty business has grown tenfold since 2016, reaching $6.7 billion in direct premiums written in 2025, with an ambition to reach $10 billion by 2030 at a sub-90s combined ratio.
“We’ve achieved this growth through disciplined underwriting, leveraging data insights and sustainable, exposure-driven pricing,” Lucarelli says. “We’ve also built strong distribution relationships across the country, working together to understand the needs of customers and responding to trends through risk control expertise and claims insights – ultimately to deliver more value, together, for the customer.”
Intact’s people are central to its ambitious growth, he adds. For 11 consecutive years, the company has been recognized as a top employer in Canada, drawing the kind of specialized talent specialty lines demands.
“Our people are focused on building a global leader by looking for creative solutions and being there for our partners,” says Lucarelli. “Brokers feel their desire and competitiveness to grow the business.”
The infrastructure behind the expertise
What makes leading complex placements end to end possible is the depth of capability Intact has built over the years.
The specialty business is supported by over 3,500 dedicated specialty employees globally, including specialized underwriters, in-house claims experts, lawyers, accountants, and risk engineers, backed by continued technology investments to improve customer experience, pricing, and risk selection.
That integration of underwriting, risk control and claims is intentional, Lucarelli says.
“Our rhythm of operation is a fully integrated, holistic view of a risk. Our teams work very closely together, risk by risk, to structure, price and service customers across multiple specialty lines including niche and risk-managed.”
Growing alongside brokers
With the $10 billion target on the horizon and continued investment in its people, technology, and new verticals, Intact is unlocking opportunity for brokers who want to grow alongside it.
“We’ve invested heavily in our pricing and underwriting capabilities over the past decade. We’re in a position of strength, where brokers and customers have confidence in our execution and they can expect consistency and sustainability in our products and services moving forward, regardless of where the market cycle is,” says Lucarelli.
“We want brokers to see us as their top option for specialty insurance,” he adds. “Our expertise empowers brokers to deliver a robust and integrated solution for their customers and drive meaningful business growth.”
With more rain — and snow — forecast for Ontario this weekend, adjusters are closely monitoring the potential for catastrophic flooding in the province.
“Right now, it’s more of a monitor-and-prepare situation, not a full Cat event just yet. That could change though,” Christine Segaric, director of Cat response at ClaimsPro, tells Canadian Underwriter Friday.
“At this point, we’re watching the northern and northeastern Ontario communities, places like Sudbury and Timmins. We are also paying attention to some of the more remote and lower lying communities like Kapuskasing.
“It still feels a bit early though. We’re not seeing a big spike in claims yet. But based on what’s happening on the ground, I wouldn’t be surprised to see things ramp up quickly over the next week or two as temperatures keep rising and the snowpack starts to melt.”
Parts of northern Ontario received more than 500 cm of snow this winter, The Weather Network reports. And the warm, spring-like temperatures over the past week have led to a rapid thaw, causing several waterways to flood. The Weather Network forecasts more rain in southern Ontario Saturday, and a mix of rain and snow in northern Ontario.
“The freeze-thaw cycle is a big part of it,” Segaric says of reports of serious flooding in several areas of the province. “We came out of a pretty deep freeze earlier this year, and now we’re shifting into warmer weather. That swing tends to create ice buildup, and with frozen grounds it makes it hard for water to drain properly once everything starts melting.”
That concern is exactly what Jim Mandeville, senior vice president at First Onsite and disaster recovery specialist, sees play out every spring on the ground.
“If we talk about Southern Ontario, we don’t have consistent very cold temperatures like we do in the West,” Mandeville told CU in mid-February. “So, when we go from hovering around freezing to minus 30, and back and forth, we end up with ice damming like crazy. If you talk about the total volume of [winter-related] claims, especially from an underwriting perspective, it’s ice damming [among the most].”
This week, Segaric says, “losses are a mix of flooding and snow-load related collapses.”
Insurance Bureau of Canada reports “we’re already seeing significant flooding in a number of communities, with many more facing elevated risk,” according to Amanda Dean, vice president of Ontario and Atlantic.
Drone footage shows several roadways in North Bay are washed out. Minden Hills, Ont., a small town in Haliburton County, has closed down roads and declared a state of emergency in response to flood conditions in the community, The Weather Network reports. And Central Manitoulin Island declared a state of emergency earlier in the week following major floods in multiple communities that shut down the Manitoulin Hospital.
“For residents impacted by flooding, IBC’s Consumer Information Centre has activated its Virtual Community Assistance Mobile Pavilion (V-CAMP) program to support home, car and business owners across the region,” says Dean.
Adjusters note that when floodwaters start rising, there is only so much homeowners can do. However, suggestions include:
making sure sump pumps are working (and ideally have a backup)
re-grading driveways to prevent water from pooling near the house
clearing eavestroughs and downspouts
ensuring downspouts direct water away from the house
Documents detailing an inspection of a beverage production facility that regulators say was the source of a deadly listeria outbreak reveal it was cited for several infractions that have not been shared previously, including some that experts say suggest may have created a “haven for listeria.”
The Canadian Press obtained through a Freedom of Information request a copy of an inspection conducted by the Canadian Food Inspection Agency into a Pickering, Ont., facility that packaged several types of plant-based milk initially recalled on July 8, 2024 by the agency due to concerns of listeria contamination. The Public Health Agency of Canada said the outbreak led to 20 reported illnesses, 15 hospitalizations and three deaths.
The problems observed by inspectors between June 26, 2024 and Aug. 22, 2024 include condensation on the ceiling and peeling paint on the floor in pasteurization areas at Joriki, the third-party facility that packaged soy, almond and coconut milk under the Silk and Great Value brands. The Pickering production line was immediately shut down after the recall and never resumed.
Although portions of the inspection are redacted, food safety experts say the discernible details reveal “huge red flags” at the facility that should have alerted health officials to act sooner.
“The CFIA should have been inspecting this plant at a much higher frequency,” said Lawrence Goodridge, a food safety professor at the University of Guelph.
“This could have been prevented.”
The CFIA said, in response to criticism that they should have caught these infractions sooner, that it is a business’s responsibility to produce safe food and the federal agency’s job is to conduct risk-based inspections and oversight.
Joriki was classified by the CFIA as not high-risk in 2021, based on a model the federal agency has since said it is adapting to account for potential food safety concerns, consumer complaints and historical trends.
“The 2024 listeria outbreak underscored the importance of strong oversight in emerging product categories such as plant-based beverages, and the CFIA is taking decisive steps to modernize and strengthen its systems,” the federal agency said.
Danone Canada, which sells Silk products, said it could not provide a response because of ongoing legal proceedings. The company, as well as Wal-Mart Canada Corp., and Intact Insurance Company settled a $6.5-million class action in November with Canadians who bought or drank the recalled plant-based milk.
Joriki ceased operation at the end of 2024. Its court-appointed representative did not respond to repeated requests for comment about this inspection through email and voice mail over the span of more than a month.
he Canadian Press has been reaching out to Joriki for comment on coverage related to the outbreak since 2024, but has never received a response.
Joriki has disputed CFIA allegations to The Globe and Mail, stating in a December 2024 article that it had a monitoring program for listeria, which included swabbing on the production line and conducting finished product testing. The company also said the CFIA never raised concerns about its program prior to the outbreak.
Red Flags
Listeria is ubiquitous in the environment, and can easily spread in food processing plants, which makes sterilizing every crevice of the facility a must.
Lori Burrows, a microbiologist at McMaster University in Hamilton, said the peeling and flaking paint on the floors noted in the inspector’s report are therefore a major problem for disinfection.
“It’s like the difference between wiping your counter and wiping your lawn,” Burrows said.
The pathogenic bacteria also thrives in wet and moist environments, such as surfaces that have condensation, which the report notes was found on the ceiling in batching and pasteurizing areas at the Joriki facility.
Not only is condensation an ideal environment for listeria to grow, but the fact that it was on the ceiling means it could have dripped onto products, she said.
The federal inspector also noted garbage and empty cartons had mounted in the loading bay area, which Goodridge said could have invited mice and rats carrying diseases inside.
“What this shows me is systemic failures in the plant with respect to food safety, a lack, a gross lack, of food safety procedures,” he said.
“The plant in which the beverage was being made may have been a haven for listeria.”
‘Failure’ of Food Safety
One of the first lessons Professor Claudia Narvaez-Bravo teaches her students about food safety at the University of Manitoba is to make a plan to control and prevent contamination. The industry name for this step is Hazard Analysis Critical Control Points, or HACCP for short.
Health Canada’s listeria policy is based on the HACCP principles of identifying, evaluating and controlling food safety hazards.
The CFIA’s inspection states in a partially redacted entry that the plant “does not list listeria as a hazard.”
Even without the complete context, Narvaez-Bravo said the absence of this basic principle is worrisome.
“When you’re dealing with ready-to-eat, listeria mono is always a problem. You always have to have listeria monocytogenes in mind,” she said.
“The fact that they didn’t list it and they didn’t have a good sanitation program is telling you that that was a combination for trouble.”
The inspection also says, “The finished product is not tested for listeria.”
In a later report, the federal agency said Joriki “did not properly implement environmental swabbing and finished product testing.”
“So basically, it’s a failure in this particular facility on the basics of food safety,” Narvaez-Bravo said.
The Timeline
In a press conference on Oct. 29, 2024, Mark Holland, the federal health minister at the time, said the CFIA had concluded its investigation and found that Joriki was not adhering to Health Canada’s listeria prevention policies, placing the blame squarely on the company.
Holland chronicled the outbreak response, which he said began on June 20, 2024, when Public Health Ontario told the federal agency there was an outbreak of listeriosis, and that they had detected listeria in a sample of Silk unsweetened coconut milk.
The next step was to confirm the link between illness and product. Lab results verified the open sample matched the outbreak strain on June 26, 2024, and the CFIA said it conducted an inspection at the Pickering facility that day.
Jennifer Ronholm, an associate professor of food science at McGill University, questioned why the plant wasn’t shut down right away in June after public health identified the plant as the source of the outbreak.
“There were clear, big problems in this plant like two or three weeks before it was linked to the outbreak. So, I mean, in theory, the outbreak could have been stopped a little sooner than it was … we could have probably avoided some illnesses,” she said.
But since the initial finding was from a sample, the CFIA said, “additional evidence was required to confirm the source and assess the risk before regulatory action could be taken.” They had to determine the scope of products affected and association to the facility.
That link was confirmed on July 8, though the primary source of the contamination was never discovered. A recall warning was issued. Affected plant lines were immediately shut down.
Almost two months later, on Aug. 22, the CFIA sent Joriki its inspection report.
When asked to what extent the CFIA communicated the food safety concerns at the plant to Joriki prior to the August report, the federal agency said they verbally told Joriki about the issues when identified, and during end-of-day meetings following six site visits between June 26 and Aug. 22.
Ronholm said there is no way to verify that verbal communication or know how it was interpreted. She questioned why inspectors wouldn’t just send Joriki a written report sooner.
“It seems like too much time between when the inspection was done and when they got the report,” Ronholm said.
The CFIA said the facility was initially given until Sept. 2, 2024 – less than two weeks after the report was sent – to fix the problems and then granted an extension until Oct. 21, 2024. Joriki responded with a corrective action plan by the October deadline, but the plant never resumed production.
At Holland’s press conference in October 2024, he acknowledged the federal agency had visited the plant in response to consumer complaints in 2018, 2019 and in 2023 to 2024 related to the possible presence of allergens, off-taste and mould.
The federal agency said the complaints were investigated and determined to be “isolated incidents that did not represent a food safety risk.” The CFIA said Joriki was told to implement corrective measures including additional sanitation controls, which inspectors verified were in place on two followup visits.
Ronholm said inspectors have to strike a balance between upholding food safety standards without shutting down every manufacturer in the country.
However, she said the mould, spoilage and listeria are all indicative of a problem after the products were pasteurized.
“I don’t want to say that we could have shut it down earlier just based on those complaints because we still need to have operating food companies, but definitely they should have been looked at a little harder in terms of their good manufacturing,” she said.
In the wake of the outbreak, the CFIA’s inspector general conducted a review of plant-based manufacturing in Canada, and found the federal agency had never visited about half of the 54 plant-based food facilities in Canada.
The CFIA released an action plan in response committing to conducting risk-based inspections of more than 2,400 manufactured food facilities currently licensed, but not yet inspected, by fall 2026. Among six action items, the agency said it will review how it integrates complaints into its risk modelling and inspection frequency.
Goodridge said he believes an earlier inspection of this facility could have made all the difference.
“These violations could have been identified earlier and the outbreak may have never happened.”
This report by The Canadian Press was first published April 17, 2026. Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
Canada’s P&C industry needs to lobby more for public investments in resilience, provide more incentives for Canadians who invest in protection for their homes, and stop re-building damaged homes to their pre-loss condition, according to a new emerging issues paper published by the Insurance Institute of Canada.
Home insurance is currently affordable, adequate, and available for most Canadians, says the report, Home Insurance Affordability: Implications for the Insurance Industry in Canada. But higher residential claims for flooding, wildfire, hail, and severe wind has driven up the price of home insurance significantly over the past 30 years.
“Strain is evident in some Canadian insurance markets,” says the report’s author, Paul Kovacs, the founder and executive director of the Institute for Catastrophic Loss Reduction. “Experience in the United States shows that home insurance affordability will inevitably become an issue if Canadians fail to break the trend of rising severe weather-related home damage and continue to experience rising residential claims.”
Statistics Canada figures cited in the report show the median after-tax income in Canada was “stagnant” between 1996 and 2025, growing by an average of 0.8% per year after inflation. Over the same period, the cost of living in Canada increased by 2.3% a year, driven by increasing costs in housing, food, and energy.
Meanwhile, the price of home insurance in Canada increased by an average of 5.3% per year over this period. “This was more than twice the increase in the cost of living, sustained over three decades,” the report states. “Indeed, Statistics Canada found that home insurance prices increased by more than inflation in 28 of the last 29 years. In this same time period, natural catastrophe–related claims have increased 8.1%.”
Claims costs for insurers ballooned to a record $9.1 billion in 2024 and returned to the more familiar (but high) range of $2.4 billion in 2025. Escalating natural catastrophe claims expenses are the main culprit in the rise of home insurance costs.
The report states every dollar invested in building resilience in homes reduces claims costs down the road by between $5 and $10.
To prevent a home insurance affordability crisis in 10 years’ time, four opportunities exist for building more damage-resistant homes, the report states:
Homes must be built in the right locations and in the right way during initial construction
Millions of existing homes lack essential protection that should be added through retrofits supported by government incentives
Governments and the insurance industry can partner to build back better after a loss, adding essential resilience measures that will reduce the future risk of damage
Communities must invest to protect homes and public infrastructure.
To this end, the “insurance industry must press with increased urgency for action by governments,” the report states. “Building codes need to include protection from flooding, wildfire, hail, and high wind. Governments should provide financial incentives to homeowners who invest in protection. Governments should invest in resilient community infrastructure.”
Second, the insurance industry “needs to become more effective in communicating present practices in a way that incentivizes homeowners to invest in seismic and climate resilience,” the report recommends. “The insurance industry must improve communications with homeowners about how resilience investments can have a favourable impact on home insurance pricing, terms, and availability.”
And finally, the industry and governments need to invest in “building back better,” meaning they rebuild in a way to prevent damage from happening in the future.
“Governments and the insurance industry need to stop restoring damaged homes to their pre-loss condition,” the report states. “This puts structures and their contents back at risk. Inevitably, homeowners will experience future loss and damage.
“Insurers and governments should commit to build back better by incorporating resilience protection into recovery efforts.”
Beavers (Castor canadensis) are widely recognized as ecosystem engineers, building dams that reshape water flow and alter the physical structure of rivers and streams.
There is a scientific consensus on the positive impact of beaver dams, for example, in creating landscape-scale wetlands, increasing biodiversity and generating heterogeneity that benefits many species. However, during extreme rainfall, beaver dams are quickly blamed for exacerbating downstream flooding whenever they break.
Together with my colleagues, I explored the topic of beavers at the international Wood in World Rivers 5 Gaspé Conference held in June 2024. That led to the publication of an article in the journal Earth Surface Processes and Landforms.
Real-world consequences
Beaver dams were heavily implicated in major flooding events in the Charlevoix-Est Regional County Municipality in Québec’s Charlevoix region in 2005 (Hurricane Katrina) and 2011 (Hurricane Irene). These events led to Québec Superior Court rulings in 2008 and 2017 that blamed beaver dam failures for downstream property damage.
Both parties had called experts with opposing views: the plaintiffs claimed that destroying the dam would have prevented the flooding, while the defence argued that the river would have burst its banks anyway.
The judge ruled in favour of the plaintiffs, finding that the municipality was aware of the potential danger posed by the dams and had a legal obligation to intervene to prevent the risk of flooding, in accordance with Section 105] of the act pertaining to municipal powers.
This section stipulates: “If informed of the presence in a watercourse of an obstacle that threatens the safety of persons or property, a regional county municipality must carry out the work required to restore normal water flow.”
Dead wood and beaver dams constitute an “obstacle” under these provisions.
In short, because beaver dams constitute a threat, they should be destroyed as a preventive measure. But what scientific evidence supports these claims?
Modelling tools exist that allow us to fully understand the downstream impacts of breaches in human-made dams, such as those belonging to Hydro-Québec, for example. It is precisely these hydraulic modelling tools that the engineer hired by the Québec municipality, Jean Gauthier, used in the report he submitted to the court in 2008. Gauthier was also present at the second trial in 2017.
A new simulation
Since the judge had questioned Gauthier’s estimate of the volume of water upstream of the dam, we decided to contact the engineer to ask him to carry out further numerical simulations using the most recent tools and data available.
To assess the impact of the beaver dam on the water level at a bridge in the municipality — Chemin Port-au-Persil — we used a model that simulated the flood resulting from the August 2011 rainfall.
We carried out simulations with and without a dam breach. To assess the worst-case scenario, we assumed that the dam would breach at the peak of the flood. We also assumed that the breach — the opening created in the dam — would form in just 10 minutes. That’s a very short time frame, comparable to that of a concrete dam, in order to measure the maximum possible impact downstream.
Since the judge had questioned the estimate of the volume of water behind the dam, this was deliberately increased to test an extreme scenario. It was quadrupled (10,000 cubic metres) compared to the volume initially estimated on site (2,500 cubic metres). Finally, a dam height one metre higher than that measured in the field (3.15 metres instead of 2.15 metres) was also tested.
Dams not to blame
The results of our modelling indicated that, even with a fourfold increase in water volume, the impact on the water level at the bridge was very low. That confirmed that the damage caused to the lodge could not be attributed to the beaver dam breaking.
The simulations also highlight that it is the height of the dam, rather than its retention volume, that controls the propagation of flood waves downstream.
In reality, other natural phenomena linked to the torrential floods that occurred are likely responsible for the damage in 2005 and 2011. These include landslides and the transport of sediment and timber resulting from the erosion of the riverbed and banks observed along the Port-au-Persil River in 2011.
Furthermore, the narrowness of the Port-au-Persil bridge may have contributed to the damage caused by the floods. The bridge was rebuilt in 2023.
The importance of rigorous assessments
Our findings challenge the negative perceptions of beaver dams and highlight the importance of rigorous scientific assessments in civil liability cases relating to flooding.
The legal implications of Section 105 of Québec’s Municipal Powers Act, as well as the case law relating to the flooding events in Quebec in 2005 and 2011 — which holds regional county municipalities are liable for damage caused by flooding due to “obstacles” in rivers — expose beaver dams to widespread and unnecessary demolition.
Instead, evidence-based management practices and public awareness campaigns should be promoted to recognize the ecological benefits of beavers while addressing concerns regarding the flood risks they pose.
Pascale Biron received funding from the NSERC (Natural Sciences and Engineering Research Council of Canada). Maxime Boivin is a co-holder of the Research Chair in Exploited Aquatic Species (CREAE) and a member of the Boreal Research Centre (CREB). He has received funding from the Natural Sciences and Engineering Research Council (NSERC). Thomas Buffin-Bélanger has received funding from the Natural Sciences and Engineering Research Council (NSERC).
This article was originally published on The Conversation, an independent and nonprofit source of news, analysis and commentary from academic experts. Disclosure information is available on the original site.
This article is republished from The Conversation under a Creative Commons license. Disclosure information is available on the original site. Read the original article: https://theconversation.com/do-beaver-dams-really-make-flooding-worse-research-casts-doubt-on-beavers-as-flood-culprits-276848
Spikes in oil and natural gas prices will have knock-on effects on a variety of areas touching Canadian property and casualty insurers — including the prospect of economic recession, positive investment returns, escalating claims costs, and supply chain disruption, a reinsurance exec told Swiss Re’s 40th annual Canadian Insurance Outlook Breakfast Tuesday.
“The knock-on effects of energy issues for inflationary impact — not just on energy, but lots of other things [as well] — is substantial,” John Dacey, former group chief financial officer of Swiss Re, said in his keynote address to the Canadian P&C leaders attending the breakfast. “Worst-case scenarios are worth thinking about…
“If the Strait of Hormuz does not open, and if there’s more material damage done to the infrastructure in the Gulf region over the coming months, the spike of oil prices and natural gas prices is going to be far in excess of what people have seen today. And the likelihood of that triggering a global recession cannot be ignored.”
Dacey qualified that he was not predicting this. He believed the warring parties would “muddle along” and come to some sort of resolution to the conflict, claiming “victory on both sides,” sooner rather than later.
Although higher energy costs contribute to inflation, that may prove to be a boon for insurers’ investment returns.
“Interest rates, as a result of the inflation impacts, are going to remain higher than people thought at the beginning of this year,” Dacey said, noting that U.S. interest rates would likely be between 4.2% and 4.5% between now and 2027. “It could go higher, because inflation could go higher.”
Since Mar. 18, 2026, the Bank of Canada’s interest rate has been 2.25%, unchanged since October 2025.
Neither the US Federal Reserve nor the Bank of Canada seem likely to lower interest rates in the current environment, Dacey said. “As a result, on a worldwide basis, the inflation is already hitting Europe thanks to energy cost. You’re going to continue to see interest rates relatively high to what we’ve seen in the last decade, ever since 2008.
“That’s not bad news for insurance companies. Your fixed income portfolios should be just fine.”
However, the increase in oil and gas prices could disrupt supply chains, which were just recovering from the pandemic shock between 2020 and 2023. That happened during a hard market in Canada, when insurance premiums rose to account for higher claims costs.
Due to the higher energy costs, “if you have to worry about paying claims and replacement values,” Dacey said, “you need to start thinking yesterday about, ‘Are we going to have a similar situation to 2022, where the cost is going to outstrip any premiums that we were able to get on board?’”
Canada, a supplier of oil and natural gas, may not be as hard-hit by inflationary energy prices as other countries, Dacey noted.
However, even though North America may not be as affected by spiking energy costs as Europe, and Europe would feel the shock less than in Asia, the energy prices would have a downstream effect on key suppliers in the global supply chain, Dacey said.
“There are economies today in the Philippines, Vietnam and Thailand, where the day-to-day activities are being constrained dramatically by the absence of natural gas and to a lesser degree oil,” Dacey said. “This is not going to fix itself in two weeks if the Strait of Hormuz were to open tomorrow. This is going to be longer-lasting.
“And these are exactly the countries which, thanks to…policies put in place a year ago, are more important for supply chains than they have been.”
Artificial intelligence explains some of the mergers and acquisitions activity in Canada’s property and casualty industry, a member of Swiss Re’s board of directors, Karen Gavan, said in Toronto Tuesday.
“We know this has to be a business of economy of scale,” Gavan replied, when asked about M&A activity in Canada at the reinsurer’s 40th annual Canadian Insurance Outlook Breakfast. “If you’re going to invest in AI to improve your processes, you have to be big. You can’t afford the investment unless you have scale, so absolutely essential.
“[For] the other part of AI, predictive analytics, you’ve got to have data. And the more data, the richer you are, and so you need both. And so it’s absolutely necessary to have consolidation. But I think…overall, it will be positive for the industry.”
Keynote speaker John Dacey, a former Group CFO of Swiss Re, discussed the importance of insurance companies stepping up to invest in AI. After his talk, Gavan made her remarks about AI investment being a driver of M&A activity in Canada. She was later asked about market concentration, to which she replied Canada still has a lot of room for M&A without disrupting choice for consumers.
“Certainly, going down to one or two companies, it’s not ideal,” she said. “But if we can have a good number of consolidated companies in the five to eight range, it will make a stronger industry.
“From a reinsurance perspective, having everyone consolidated, it’s a little tough for us. But I think it’s better for the Canadian industry if there is that consolidation.”
Dacey said Canadian P&C insurers needed to be aware of four main global influences on Canada: AI, energy costs, global inflation and interest rates, and the rise of private credit.
Speaking about AI specifically, Dacey said Canadian insurers should be thinking about investing in AI solutions “yesterday.”
“On the P&C side, [AI] is more clearly having effect as people think that value chain through,” Dacey said. “Removing human bias from underwriting. Making sure that the most recent data gets put, not just into your models, but your pricing. And most importantly, figuring out ways to bring new data that’s never been utilized for underlying commercial risks in particular, personalized risk maybe, into a price environment.”
P&C insurance companies successfully using AI will see two things happen, Dacey said.
“One, they will avoid some of the worst risks,” he said. “Not all of them, you can never avoid all of them. But you can clean up your portfolio before the experience of a loss.
“And you can also figure out a way to shape prices …to get some of the best risks your competitor has in your portfolio.
“And that combination on the margin, improving your combined ratio by a point, maybe two over time, is worth a lot of money.”
Plus, Dacey added, companies will need to use AI’s predictive analytics to help consumers, and also to help the distribution channel serve customers. Because if they do not, the broker distribution channel will develop AI models themselves.
“If you don’t do that on the distribution side, the intermediaries will also be coming out in front of you. And they’ll be directing risks in ways that benefit them, and who’s making the highest commissions.”
Recognition marks six consecutive years of national workplace excellence
TORONTO, ON, APRIL 14, 2026/insPRESS/ – CHES Special Risks Inc. has been named a Great Place to Work® and recognized as one of Canada’s Top Small & Medium Employers for 2026, marking the organization’s sixth consecutive year receiving these national distinction.
The recognition reflects CHES’s ongoing commitment to fostering a workplace culture centered on flexibility, inclusion, growth, and employee well‑being. The Canada’s Top SME Employers program evaluates organizations based on workplace policies, benefits, and initiatives that support employees at all stages of their careers.
Among the factors cited in CHES’s selection were its investment in professional and personal development, including tuition subsidies of up to $1,000 annually for courses both related and unrelated to an employee’s current role, as well as support for professional accreditations.
CHES was also recognized for its parental support programs, which include maternity and parental leave top‑up payments to 75 per cent of salary for up to 17 weeks, with the option for extended unpaid leave.
Flexible work practices were another key contributor to the recognition. CHES encourages employees to prioritize work‑life balance through flexible hours and a recently updated hybrid work policy that allows team members to work outside their home province and, in some cases, from other countries.
“Being recognized as a Great Place to Work and a Top SME Employer for the sixth year in a row is incredibly meaningful,” said Gary Hirst, CEO, CHES Special Risk. “It reflects our belief that a strong culture, trust, and flexibility are essential to long‑term success.”
CHES Special Risk’s workforce is notably diverse and multicultural, with employees speaking 13 languages and representing a wide range of backgrounds and experiences. The organization is also majority women and continues to attract and develop young talent across its underwriting, operations, and corporate teams.
As CHES continues to grow nationally, the company remains committed to building an inclusive, supportive environment and notes that it is always looking to connect with talented individuals who share its values and interest in specialty insurance.
This latest recognition underscores CHES’s long‑standing focus on creating a workplace where employees feel supported, challenged, and empowered to grow.
ABOUT CHES Special Risk Inc.
CHES Special Risks Inc. was established as a Managing General Agent and Wholesale broker in 2004, in response to broker demand to a hardening market place, commencing with a particular speciality in the entertainment and hospitality business, later becoming a fully accredited Lloyd’s coverholder in 2009. CHES Special Risk and Sister Companies are a fully Independent MGA delivering “A” rated capacity both in the hard to place, and standard lines classes and support their retail brokers in growing and developing their businesses.
TORONTO, ON, APRIL 14, 2026/insPRESS/ – CBN, the exclusive peer advisory group for high-performing brokers in Canada, is pleased to announce the addition of Coughlin Insurance Brokers, Winnipeg, MB and Ontario West Insurance Brokers, London, ON, further strengthening its national network of leading independent brokerages.
“Aligning our brokerage with CBN will allow us to continue to grow, share insights, and learn best practices alongside other leading independent brokers,” says Matthew Coughlin, President & CEO of Coughlin Insurance Brokers. “We’ve built strong momentum across our business, and joining CBN felt like a natural fit as we continue to expand.”
“We see strong value in being in the room with like‑minded peers to work through challenges together and learn from solutions others have already implemented,” says Traci Boland, Partner at Ontario West Insurance Brokers. “At the same time, we look forward to contributing our own experience and insights to the CBN community.”
“We’re very pleased to welcome Coughlin Insurance Brokers and Ontario West Insurance Brokers,” says Lorie Phair, President of CBN. “By joining CBN, members gain access to a trusted environment where high‑performing brokers can openly share ideas, challenge perspectives, and support collective growth and long‑term success.”
About CBN
For the independent broker committed to success, CBN is the exclusive peer advisory group that helps build and sustain high-performing brokerages through shared best practices, expertise and advice.With over 30 member firms, 100 offices, 4,000 employees, and representing more than $3.5 billion in property-casualty premiums, CBN provides national reach with a local touch.
CBN member brokers offer expertise across personal, commercial, employee benefits, life, and financial services, ensuring Canadians receive the highest standard of quality products, risk management advice and service. CBN also provides independent, high-performing brokerages with a unique way to grow and innovate their businesses by leveraging the collective wisdom, experience, and connections of their peers. Evolving from a best-practices forum established in 2002, CBN fosters innovation, collaboration, and a commitment to growth and performance ensuring that members deliver superior value to clients, employees, and insurer partners.
Exclusively focused on the success of independent brokers.
