According to a study published by the Competition Bureau of Canada, implementing a data portability system would benefit consumers by making it easier to shop for a new provider for their insurance, banking, or telecommunications services.

In the report entitled Your Data, Your Control: How data portability can unlock competition and empower consumers, the authors estimate that in the insurance sector alone, Canadian clients could save between $1.1 billion and $3.8 billion in annual costs.

For insurance products alone, the report’s authors estimate that each Canadian household could save an average of $128.37 annually by switching to lower-cost insurance plans, representing total savings of $1.5 billion.

This amount is in addition to time savings during the shopping process. According to the Bureau’s economic analysis, based on a national survey of more than 3,000 participants, each household would reduce by five hours per year the time spent shopping for insurance products. The value of this time is estimated at $185.31 per household, resulting in additional savings of $2.3 billion.

The scenarios presented to survey participants were mainly related to home insurance, senior Bureau officials said, but the economic estimate is valid for various types of insurance products, including auto insurance and personal insurance products.

Gradual implementation

The Bureau suggests three key elements required to create a Canadian framework for data portability. First, consumer trust in oversight bodies must be ensured.

Second, the Bureau recommends establishing transparent rules on consent and privacy protection and ensuring high interoperability to facilitate data sharing across digital platforms.

Third, the Bureau recommends learning from international initiatives, such as the United Kingdom’s open banking system, which now has more than 12 million active users and includes 336 regulated companies. The UK regulator reported 224 million transactions made in 2024 through this open system, a 73 per cent increase over the previous year.

The Bureau’s report also cites Australia’s Consumer Data Right (CDR), introduced in 2019. Following issues raised by the Australian Competition & Consumer Commission—particularly regarding high compliance costs and limited customer adoption—the CDR was fully revised in August 2024.

“Data portability can help businesses attract new clients and stimulate competition,” the Bureau states in a section of the report addressing the impact of an open system on businesses. Customer acquisition costs would be lower, particularly for new firms.

However, data portability could also increase investment and compliance costs for small and medium-sized enterprises (SMEs). The Bureau notes that some sectors, such as payment systems, have shown that SMEs “can thrive and innovate when regulations are tailored to business size and function.” A gradual or proportional approach to implementing compliance requirements is recommended.

During a technical briefing with media representatives on January 15, Insurance Portal asked whether consumer data portability would also benefit the industry itself. Senior officials at the Competition Bureau were unable to quantify the potential savings in insurance distribution. However, they noted that data portability lowers barriers to entry, helping to increase competition and foster innovation, ultimately benefiting consumers.

Competition in the banking sector

Bureau representatives noted that in its most recent budget, tabled last November, the federal government announced its intention to promote greater competition in the banking sector. The Consumer-Driven Banking Framework is aimed in part at encouraging policies that give consumers more control over their data in the digital world.

At the same time, the Canadian government committed to guaranteeing the right to data mobility under the Personal Information Protection and Electronic Documents Act “in sectors that establish secure and interoperable frameworks,” starting with banking services.

Once data portability is enshrined in the Act, existing consumer protections will apply when they engage with providers they approach, Bureau officials stated.