Insurable Interest Canadian Insurance Blog

By Stephen Applebaum and Alan Demers — The insurance industry is at a crossroads. Brewing negative consumer sentiment toward insurance affordability and premium fairness is spilling over as profitability struggles threaten markets. As the industry takes needed action, the approach itself comes into question. Insurers find it difficult to inform and educate a customer base that views pricing as opaque and overly complicated. All of this begs the question; can premium adequacy and trustworthiness co-exist? Eroding Trust As trust erodes and consumers grow increasingly skeptical, the industry faces mounting challenges. Recent lawsuits involving individuals’ driving data from connected cars and consumer apps being sold to insurers without clearly informed consent has struck a nerve. Allegations of improper home insurance cancellations based on flawed aerial imagery and related concerns of insurers “spying” on their customers has surfaced. And even more attention has been attracted by the recent reports of non-renewals for many homeowners just prior to the Los Angeles area wildfires and is generating a mix of angst and wake-up calls. But each of these actions are deemed necessary for carriers to ensure viability despite the obvious criticism that they lack transparency. Insurer profitability has been in the forefront as the...

The “singles tax” is real: roughly half of Canadians agree that retirement will be near impossible for singles – but tailored financial advice can bridge the gap Guelph, ON (Feb. 19, 2025) – Financial confidence is growing, but this isn’t translating to a better idea of retirement for one group: singles. A new survey from Co-operators shows that Canadians are feeling more confident in their finances compared to previous years’ surveys (37% in 2025 versus 35% and 33% in 2024 and 2023) but the long-term outlook is murkier for singles. This begs the question – is there a singles tax on retirement? Survey responses appear to say ‘yes.’ Many singles are still struggling to balance everyday costs, giving them a bleak perspective on their financial future and impacting their ability to save. Just under half of all singles (45%) view saving for retirement as a near-impossible task – a view conceded by 40% of all Canadians who don’t think most single people can realistically save enough money to retire on their own. “While we’re happy to hear people are beginning to feel more financially secure, the data shows younger generations are still vulnerable, and unable to balance the cost of...

Year-over-year premium renewal rates increase at a slower rate as most quarter-over-quarter premium rates decrease across the most commonly placed commercial lines of business Toronto, ON (Feb. 13, 2025) – Applied Systems® is pleased to announce the final quarter 2024 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate increases was down across all lines relative to average premium renewals in the same quarter last year with 5.02% in Q4 2024, down from 7.55% in Q4 2023. All lines of business saw decreases compared to the same quarter last year. Quarter over quarter, Q4 2024 results showed average renewal rate change decreased across all lines of the most commonly placed Commercial Lines categories, including Real Estate Property, Construction, Hospitality Services, and Retail Services, with the exception of Business and Professional Services which experienced a slight quarterly increase. Significant findings include: Business and Professional Services: Q4 2024 premium renewal rate change average was 5.48%, up from the Q3 2024 average of 5.30%. Construction, Erection, and Installation Services: Premium renewal rate change average was 4.78% for the quarter, down from the Q3 2024 average of 5.36%. Hospitality Services: Q4 2024 premium renewal rate...

Report explores future as AI-powered autonomy takes shape and ripples across all dimensions of how an enterprise can reinvent technology development, customer experience, the physical world and global workforce New York, NY (Feb. 17, 2025) – New research from Accenture finds a new era of digitization is unfolding—one in which AI continuously learns and drives new levels of autonomy across organizations, positioning trust in its performance as the most important measure organizations will need for AI to achieve its promise. Now in its 25th year, the Accenture Technology Vision 2025 explores how the future is being shaped by AI-powered autonomy. As AI diffusion accelerates across the enterprise and society at a rate that is faster than any prior technology, 69% of executives believe it brings new urgency to reinvention and how technology systems and the processes it enables are designed, built and operated. The research also predicts AI will increasingly act as a technology development partner, a personal brand ambassador, power robotic bodies in the physical world, and foster a new symbiotic relationship with people to bring out the best in each other. “Our 25th Technology Vision gives leaders a look into what’s ahead when AI continuously learns, acts autonomously...