The next few decades will see extraordinary change in the Canadian economy with many opportunities but also severe risks. The Financial and Insurance sectors will be impacted by these changes – in the negative if the risks are not foreseen and addressed and in the positive if the opportunities are recognized and taken.
For the first time since global discussions began in Rio three decades ago, most of the world finally seems ready to embark upon serious efforts to reduce global greenhouse emissions. Carbon intensive industries will have to change profoundly or wither. Firms and sectors that can deliver clean growth will seize new market opportunities.
Investment portfolios, whether directly from the Finance and Insurance Sector or managed on behalf of clients, will need to be strategic in placing funds. The risk profile of loan books will need to be carefully evaluated and managed.
Climate action will not likely come soon enough or be sufficiently robust to avoid more and larger natural disasters with the potential for very large insurance claims. The climate adjustments will need to take place in the context of extraordinary debt loads of all sectors – households, businesses and Governments.
The debt loads present further risk to the economy, the Financial and Insurance sector, fintech, and investment portfolios and will need to cope with the need for monetary authorities to move closer to a neutral policy setting after more than a decade of extraordinary stimulus.
The Reform of Government Services and the Impact to the Energy Sector
The Value of Business Ethics
Fixing Canada’s Productivity Malaise
The Economic Outlook and Implications for Investors
Future of the Banking Sector