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2018 Banking and Insurance Outlook: Rising Interest The Conference Board of Canada, November 21, 2017 Recorded Webinar by Michael Burt , Richard Forbes

2018 Banking and Insurance Outlook: Rising Interest

The Conference Board of Canada, November 21, 2017
Recorded Webinar by Michael Burt , Richard Forbes

The strength of the Canadian economy is providing a boost to the banking sector, which has already enjoyed several strong years. The insurance sector has also had a strong run in recent years. However, both sectors are expected to experience slower growth in coming years. The Conference Board of Canada has new outlooks for Canada’s banking services industry and Canada’s insurance industry. In this webinar, you’ll get five-year sales, price, employment, revenue, cost, and profitability outlooks for the banking and insurance industries. Overall, we expect the banking industry to post growth in output of between 2.5 to 3 per cent throughout the forecast, below the growth seen in recent years, but still outpacing the pace of the overall Canadian economy. The overall outlook for insurance is modest, sales will grow by an average of 1.3 per cent annually through 2021 and prices are expected to increase by an annual average of 1.7 per cent. Webinar Highlights During this 60-minute webinar, Michael and Richard outline the key factors shaping the outlook: Interest rates: Canadian interest rates have been on the rise since July, which is a benefit to the bottom line of both the banking and insurance sectors. However, rising rates are a double-edged sword for bankers, because it will weigh on housing affordability and demand for new mortgages in the medium term. Fintechs: Facing competition from emerging fintech firms, the Canadian banking sector has responded with numerous initiatives to fuel digital innovation in the sector, partnering with fintech firms to enhance their product offering and collaborating with universities to stay on top of the latest technologies and leverage them in their operations. Catastrophes:Severe weather and other catastrophes are normally unpredictable and can increase claims sharply for insurers. About Michael As Director, Industrial Economic Trends, Michael Burt oversees regular forecasts for more than 30 different sectors of the Canadian economy, including an annual Industrial Profile for Canada’s Retail Trade Industry. Michael joined The Conference Board of Canada in 2004. In addition to contributing to the development of the Industrial Outlook forecast model, Michael has introduced new industry-specific products and conducted commissioned analysis. Michael has a Master’s degree in Economics from the University of Toronto, and has also completed the Chartered Financial Analyst program. About Richard Richard Forbes joined the Conference Board in 2016 as an economist on the Industrial Economic Trends team. Richard is responsible for performing research, contributing analysis on a wide range of industries across the Canadian economy and writing some of the group’s publications. Before joining the Conference Board, Richard spent time as a quantitative analyst at Ontario Teachers’ Pension Plan, assisting with vetting procedures within the organization’s Model Validation Group. Richard holds a Bachelor of Arts Honours degree in economics from Western University as well as a Master’s degree in economics from McMaster University where he specialized in International Trade and Labour economics.

The strength of the Canadian economy is providing a boost to the banking sector, which has already enjoyed several strong years. The insurance sector has also had a strong run in recent years. However, both sectors are expected to experience slower growth in coming years. The Conference Board of Canada has new outlooks for Canada’s banking services industry and Canada’s insurance industry.

In this webinar, you’ll get five-year sales, price, employment, revenue, cost, and profitability outlooks for the banking and insurance industries.

Overall, we expect the banking industry to post growth in output of between 2.5 to 3 per cent throughout the forecast, below the growth seen in recent years, but still outpacing the pace of the overall Canadian economy. The overall outlook for insurance is modest, sales will grow by an average of 1.3 per cent annually through 2021 and prices are expected to increase by an annual average of 1.7 per cent.

Webinar Highlights

During this 60-minute webinar, Michael and Richard outline the key factors shaping the outlook:

Interest rates: Canadian interest rates have been on the rise since July, which is a benefit to the bottom line of both the banking and insurance sectors. However, rising rates are a double-edged sword for bankers, because it will weigh on housing affordability and demand for new mortgages in the medium term.
Fintechs: Facing competition from emerging fintech firms, the Canadian banking sector has responded with numerous initiatives to fuel digital innovation in the sector, partnering with fintech firms to enhance their product offering and collaborating with universities to stay on top of the latest technologies and leverage them in their operations.
Catastrophes:Severe weather and other catastrophes are normally unpredictable and can increase claims sharply for insurers.

About Michael

Photo of Michael Burt As Director, Industrial Economic Trends, Michael Burt oversees regular forecasts for more than 30 different sectors of the Canadian economy, including an annual Industrial Profile for Canada’s Retail Trade Industry. Michael joined The Conference Board of Canada in 2004. In addition to contributing to the development of the Industrial Outlook forecast model, Michael has introduced new industry-specific products and conducted commissioned analysis. Michael has a Master’s degree in Economics from the University of Toronto, and has also completed the Chartered Financial Analyst program.

About Richard

Photo of Richard Forbes Richard Forbes joined the Conference Board in 2016 as an economist on the Industrial Economic Trends team. Richard is responsible for performing research, contributing analysis on a wide range of industries across the Canadian economy and writing some of the group’s publications. Before joining the Conference Board, Richard spent time as a quantitative analyst at Ontario Teachers’ Pension Plan, assisting with vetting procedures within the organization’s Model Validation Group.

Richard holds a Bachelor of Arts Honours degree in economics from Western University as well as a Master’s degree in economics from McMaster University where he specialized in International Trade and Labour economics.

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