Emerging risks, customer expectations and talent management are just a few of the strategic imperatives discussed by industry executives gathered for the Future of Insurance Canada conference hosted by Reuters Events.
A summary of their comments was recently compiled by the agency in a report, Efficiency, Risk, and the Changing Customer: Key Priorities for Canadian Insurers.
The discussion about strategies for enhancing efficiency, managing complex risk and redefining customer relationships, also covered technological advancements and where companies are investing in some cases.
Profound transformation
“The Canadian insurance landscape is undergoing a period of profound transformation,” they write. “For Canadian insurance professionals, understanding these dynamics is no longer optional.”
Competition, they say, has reached a “fever pitch”, demanding unprecedented levels of efficiency and customer-centricity. “This drive for efficiency is complemented by a heavy investment in technology,” they add. That investment is helping companies leverage artificial intelligence (AI) in claims processing, pricing and even repair shop routing, as is the case at Aviva Canada.
That company says this has tangibly improved customer satisfaction, noted in increased Net Promoter Scores. They add that the pressure is also on to move insurance from a “grudge purchase” towards a more valued relationship.
Data-driven guidance for brokers
Stronger collaboration within the industry is also necessary to develop better integration between broker and carrier technologies. “Providing brokers with data-driven guidance and recommendation engines is crucial.” More broadly, they add that “managing unknown and interconnected risks, including economic threats like tariffs, requires a collective effort.”
They conclude saying technology investment alone is insufficient, adding that successful implementation hinges on human capital.
“Success in this environment demands a holistic approach. Insurers must relentlessly pursue operational efficacy through smart technology adoption and process optimization. They must revolutionize the customer experience, moving beyond transactional relationships,” they state. “Critically, the industry must proactively confront escalating risks. Finally, the future hinges on successfully integrating technology with talent.”
