Reuters Events, following their November event, The Future of Insurance Canada 2023, has published a summary report from the event, entitled Dynamic, Evolving and Ready to Act. In it, Reuters examines the need for insurers to balance growth plans and profitability, higher reinsurance terms, increased competition and pressure to embrace technological innovation.
“It’s not a matter of if, but when and how we will embrace (digital ecosystems) or become irrelevant,” said keynote speaker, Hashmat Rohian, vice president and chief technology officer at insurtech firm, Duuo by Co-operators.
The report states that Canadians show a strong preference for basic, simple to understand and affordable coverage. “They also want to protect their privacy, thus are suspicious for the most part of innovations such as connected offerings,” the report states. Another speaker, Mylène Côté, vice president, claims and chief compliance officer with Everest Insurance Company of Canada, added that everything starts with communications and understanding client expectations. “If there’s a clear exclusion that precludes coverage, it’s very important to say it right from the get-go,” she said.
Automation, artificial intelligence (AI) are discussed – Canada’s journey to digitalization has been slower than many countries, they note – and younger Canadians, they say, are reacting to the lack of flexibility by embracing tailored solutions. While Canadians are generally loyal insurance customers, they also note: “As of August 2023, there were over 250 insurtechs in Canada, and these online offerings will increasingly make it easier for customers to change providers. The ongoing shift to digital channels means that insurers should refocus on customer experience and drive improvements by highlighting convenience, value, flexibility and service to protect their market shares.”