NIAGARA-ON-THE-LAKE, Ontario — Business should be good this year, according to a leading Canadian economist — as long as nature cooperates and political volatility remains moderate.

Robust global economic growth, as evidenced by an index of leading economic indicators from the Organization for Economic Co-operation and Development, would provide a fertile environment for business in 2014, said Peter Hall, vice president and chief economist at Ottawa, Ontario-based Export Development Canada, Canada’s self-financed export credit agency that provides insurance and financial services.

A “significant natural event,” however, such as a severe catastrophe that produces extensive losses, poses a risk to the business environment for the insurance industry, Mr. Hall said. “I will have to say, over the past few years there seems like there is a repetitive” instance of natural events jarring the insurance industry, he said.

Political risk such as the current turmoil in Iraq also could roil world economies, said Mr. Hall, and provide another hurdle for the insurance industry.

Working in insurers’ favor, however, is a relatively high level of employee engagement in their work, according to Toronto-based Todd Mathers, talent and engagement consulting partner with Aon Hewitt.

The 22 Canadian insurers tracked by Mr. Mathers post an engagement score of 69%, he said. “For an industry group, that’s actually a pretty high level of engagement,” said Mr. Mathers.

Both Messrs. Hall and Mathers were speaking to insurers, brokers, agents and related professionals gathered at the Canadian Commercial Insurance Summit at Niagara-on-the-Lake to discuss how to respond to challenges facing their industry in 2014 and create sustainable growth.

The industry does face some headwinds for 2014, according to speakers.

Alternative capital entering the insurance industry from nontraditional sources poses a challenge to established players, said Alister Campbell, CEO of Toronto-based insurer The Guarantee Co. of North America, during a panel discussion featuring several industry chief executives.

“You are watching capital seeking returns in areas in which it has not historically. So you have pension funds and private equity entering alternative risk vehicles,” said Mr. Campbell.

Independent brokers will have to adapt to competition from direct underwriters, said Andrew Kemp, president and CEO of Vancouver, British Columbia-based CMW Insurance Services Ltd., during the CEO panel. “We’re going to have to look at more efficient ways to transact business because the sophistication of direct underwriters is growing and poses a challenge,” said Mr. Kemp.

Remaining as an independent broker is a vital part of remaining successful, said Barry Lorenzetti, president of commercial brokerage BFL Canada Risk & Insurance Inc. in Montreal. “Being independent has obviously helped our growth over the years,” he said during the CEO panel.

“Regulation is something that concerns me,” said Greg Somerville, president and CEO of insurer Aviva Canada Inc. in Markham, Ontario. “The kind of regulation we’re being subjected to both provincially and federally is a concern.”

Regulation was also mentioned during a discussion concerning the lessons learned from the Calgary, Alberta, floods during June 2013. A lack of reciprocal licensing agreements between provinces prevented claims adjusters from crossing provincial lines in some cases, according to Bob Fitzgerald, president of insurance claims manager ClaimsPro Inc. in Toronto.

U.S. adjusters faced a similar problem responding to Superstorm Sandy in 2012, as a lack of such agreements between U.S. states delayed and prevented some claims adjusters from entering storm-hit states, especially New York, Mr. Fitzgerald said.

And just as a natural disasters can hit world financial markets, so too can such an event change insurance markets and even create opportunities.

After the Calgary floods, the market for flood insurance changed drastically for many of those hit by the water, said Calgary-based Eddie Fung, vice president with brokerage BFL Canada.

Terms and conditions changed, deductibles were instituted and raised, and pricing went up, Mr. Fung said. Being able to go into a newly defined market and secure coverage for existing and new clients was one way for a broker to distinguish itself in the wake of the floods, he said.