Canadian Underwriter’s 2025 Executive Outlooks
A SUMMARY BY NAVACORD
Introduction
Every year, Canadian Underwriter publishes a series of Executive Outlooks from industry leaders sharing their insights on upcoming trends and pertinent themes for the year ahead.
In the midst of ongoing change—ranging from the potential impact of looming tariff threats and a federal election, to the weakening Canadian dollar and broader economic shifts—staying proactive is more critical than ever. These factors not only influence market conditions and pricing but also shape client needs, risk exposures, and strategic decision-making across the industry.
Read on for Navacord’s summary of this year’s Executive Outlooks, highlighting both challenges and opportunities ahead.
Key Stakeholders
CLIENTS BROKERS INSURERS
In 2024, Canada faced catastrophe-related property losses exceeding $7.6 billion, marking it as the most catastrophic year on record. This primarily impacted the personal lines market and is expected to shape the dynamics of 2025.
Top Themes for 2025
CLIMATE CHANGE, CATASTROPHIC WEATHER EVENTS & 2024’S RECORD-BREAKING LOSSES
Discussed in over two thirds of all Outlooks (72%)
A TRANSITIONING MARKET IN COMMERCIAL P&C
Discussed in over two thirds of all Outlooks (69%)
THE ECONOMY, INFLATION, AND AFFORDABILITY
Discussed in two thirds of all Outlooks (66%)
THE IMPORTANCE OF KEY RELATIONSHIPS
Discussed in over half of all Outlooks (60%)
LEVERAGING AI & DATA
Discussed in over half of all Outlooks (56%)
What’s New This Year?
CLIENT PRICING AFFORDABILITY
Many executives have expressed concern over pricing affordability for clients due to rate fatigue, inflation, and pushback on rising premiums.
RECORD-BREAKING LOSSES
2024 has been recorded as the most devastating year for losses to date, raising concerns regarding its ongoing impact on future trajectory of the marketplace.
Despite 2024’s record-breaking losses, half of Outlooks expressed their optimism for a promising 2025.
COMMUNITY SUPPORT
Much of the industry acknowledges our role in providing support to our communities that are personally impacted by catastrophic weather events, economic challenges, and geopolitical tensions. We aspire to be recognized as a pillar of support and many companies are committed to actively fulfilling this role.
“I’m optimistic 2025 will bring ample opportunities, meaningful growth and stronger collaboration between insurers, brokers and stakeholders.”
– Tracy Garrad, Aviva Canada
While there was still focus on talent, conversation dwindled in comparison to last year.
With inflation easing, much of the dialogue around economic pressure is centred around the concern of coverage affordability for clients, rather than high cost of living like we’ve seen in the past.
Climate Change, CATs, & 2024’s RecordBreaking Losses
• Canada experienced over $7.6 billion in catastrophe-related property losses in 2024 – making it the most devastating year on record – primarily affecting the personal market and influencing 2025 dynamics.
• Climate change is significantly affecting Canadians and our communities as the country faces emotional and financial burdens from home losses or evacuations due to catastrophic weather events.
• Reinsurers’ responses to climate-related events will impact market conditions, potentially leading to higher pricing and a tighter market, necessitating collective action to support our policyholders across Canada.
• Insurers are eager to continue working with various levels of government, industry partners, and local organizations to address the needs of our communities nationwide. Ongoing investment in infrastructure and policies like the newly launched National Adaption Strategy remain critical to combat climate change.
“Reflecting on the past year, what stands out the most for me is one staggering statistic: four catastrophes in 25 days. From the flash floods that inundated Toronto to the devastating wildfire in Jasper, the hailstorm that battered Calgary, and the flooding in Quebec caused by the remnants of Hurricane Debby, what Canadians faced in just a handful of weeks was unprecedented. The impact of those natural disasters continues to linger and will resonate well into 2025.”
- Anna McCrindell, Wawanesa Insurance Company
A Transitioning Market
• The Canadian insurance market is fragmented, with distinct trends separating personal and commercial lines.
• Personal lines are expected to see continued premium increases due to losses from catastrophic weather events, in turn raising affordability concerns for clients.
• Commercial lines show trends of softening, leading to increased competition and lower premiums for businesses. The shift to a soft market will also present challenges in talent training and development.
• These trends are anticipated to persist throughout 2025, with challenging conditions expected to remain stable for the foreseeable future.
“As one of Canada’s largest commercial brokers in the mid-market space, we can see clearly into the changing market… In 2025, the change to a soft market will bring new industry challenges around talent training and development. It will require a different skillset to sustain success and meet client expectations.”
– T. Marshall Sadd, Navacord
Inflation & Client Pricing Concerns
• Much of the discussion around inflation or economic pressure, usually focused on rising living costs in previous years, instead centered around the close relationship to concern over pricing affordability for clients in our current market and economic state.
• Consumer expectations continue to focus on value and cost savings, necessitating a focus on exceptional service and consistency from commercial insurers.
• Adapting to environmental and customer needs is essential for success as we approach 2025, emphasizing the importance of sustainable coverage, outstanding service and stable value for commercial clients.
The cost-of-living crisis must remain top of mind. Inflation is easing, but we cannot be complacent. Life is more expensive for Canadian families and businesses… In response, insurers must focus on operational excellence and efficiencies without compromising on service.”
– Louis Gagnon, Intact Financial Corporation
The Importance of Key Relationships
• Strategic partnerships among reinsurers, insurers, governments, and nonprofits are essential for developing affordable insurance solutions and providing disaster recovery financing, evidenced by over 250,000 claims paid in 2024 to support families and businesses.
• Building meaningful relationships with brokers is vital for collaboration and customer advocacy, alongside maintaining consistency in underwriting and strong broker service.
• Stronger collaboration with our government is vital for Canadians and the industry to balance affordability and sustainability amid rising claims costs, auto theft, and infrastructure investment needs.
• Insurers must enhance risk management capabilities through investments in geographical information systems, advanced peril modeling, and strategic partnerships with reinsurers.
“For the industry, these are opportunities to cultivate stronger long-term relationships by demonstrating genuine care, whether it be an immediate phone call, an advanced payment to cover emergency expenses, or confirmation that help is on the way. Effective and consistent empathy plays a crucial role in making it right in the moment, which ultimately fosters unwavering customer loyalty.” ”
– Paul Jackson, Zurich Canada
Leveraging AI & Data
“…Digital
transformation will accelerate in 2025. Technology adoption is fundamental to further investment in platforms that connect industry professionals to consumers, while simultaneously increasing industry efficiency and profitability.”
– Taylor Rhodes, Applied Systems
• There is a growing need for value-added insights from reinsurers to better understand and mitigate risks, foster innovation, and enhance performance.
• As previous years, the industry will continue to prioritize their digital transformation processes and data strategies as it is the ultimate key to unlocking major benefits such as: claims data and better underwriting decisions, talent retention, value-add for clients, and other benefits that facilitate industry disruption,
• There has been a noticeable shift in focus; while last year the discussions primarily concentrated on the ethics of artificial intelligence, this year the emphasis appears to be less pronounced and instead highlights its capabilities for operational efficiencies and positive client experiences.
What 2024 Predicted – Was it Right?
Climate Change & Catastrophic Weather Events
Inflation & Macroeconomic Pressures
Leveraging AI & Data tools to streamline, research, and innovate
Enhancing Client Experience and Growing Consumer Expectations
Focus on Talent
Ongoing geopolitical crisis
Auto theft
Amount of Outlooks that discussed the topic increased
LEGEND
Amount of Outlooks that discussed the topic stayed the same
Amount of Outlooks that discussed the topic decreased
Looking Ahead
The Canadian insurance marketplace enters 2025 with a mix of challenges and opportunities. Our industry’s proven resilience in the face of climate change, economic volatility and geopolitical tension, combined with our commitment to ongoing technological innovation and client-centric operations are poised to define the year ahead.
By fostering collaboration and embracing change, brokers and insurers can navigate this evolving landscape and continue to deliver value to their clients and communities where they need it most.
“But in these challenges lies opportunity. For individuals passionate about contributing to real-world solutions, the commercial insurance sector provides a chance to make a tangible difference — whether it’s supporting climate resilience or strengthening economic stability.”
– Rob Marsh, Liberty Mutual Canada
External Resources
OUTLOOKS - ONES TO READ
• T. Marshall Sadd, Navacord
• Shari Dodsworth, Northbridge Insurance
• Celyste Power, Insurance Bureau of Canada
• Rob Marsh, Liberty Mutual Canada
• Paul Jackson, Zurich Canada
Visit Canadian Underwriter’s Outlook Hub to read all 2025 Executive Outlooks.