Insurance in transition: embracing innovation and change
How Canadian insurers can navigate challenges and seize growth opportunities through innovation and technology in a volatile landscape: EY’s 2025 Canadian Insurance Outlook
London, GB (Mar. 25, 2025) – The Canadian insurance industry stands at a crucial juncture, influenced by global trends and similar challenges in markets around the world. Insurers in Canada are contending with volatility and uncertainty, driven by geopolitical tensions, including tariffs, evolving customer expectations and the imperative to invest in future-ready technologies. These challenges are intensified by the unprecedented impacts of natural disasters, including wildfires, hailstorms and floods.
Insights from the EY Global Insurance Outlook reveal how insurers can foster growth amid these challenges. We remain optimistic about the industry’s future and believe Canadian insurers are well positioned to seize emerging opportunities.
This year, key themes include:
- Navigating a complex landscape: addressing societal and structural challenges in a volatile environment.
- Pursuing multiple paths to growth: embracing purposeful product innovation, tech-led distribution, ecosystem partnerships and strategic cross-selling.
- Retooling for success: deploying AI and modernized technology, and empowering the workforce to foster a culture of innovation.
Investing wisely in innovation and technology will be crucial for insurers to achieve sustained, profitable growth. Insurers are increasingly employing advanced data analytics and AI to support long-term business strategies focused on operational efficiency and growth, and enhancing customer and broker experience. By cultivating a culture of innovation, prioritizing customer-centric solutions and investing in technology, Canadian insurers can not only navigate the storms of change but also thrive in an increasingly competitive landscape.
As with previous editions, our 2025 report aims to provide valuable insights for senior leaders, helping them chart a course through turbulent markets.
We hope you find the insights and recommendations timely and beneficial. We also welcome the opportunity to discuss your organization’s perspectives on these critical issues, opportunities and imperatives.
About EY
EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets. Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow. EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories. All in to shape the future with confidence. For more information, please visit ey.com.
EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation is available at ey.com/privacy. EY member firms do not practice law where prohibited by local laws.
SOURCE: EYGM Limited
Tags: disruption, EY, Innovation, outlook / predictions, report, Transformation, trends