Insurable Interest Canadian Insurance Blog

Insurity 2025 AI in Insurance Report highlights consumer sentiment on AI adoption in the P&C insurance industry, uncovering crucial insights for insurers navigating the future of risk management Hartford, CT (Jan. 21, 2025) – Insurity, the leading provider of cloud-based solutions for insurance carriers, brokers, and MGAs, is pleased to announce the release of its 2025 AI in Insurance Report, highlighting key consumer opinions on the use of artificial intelligence (AI) in P&C insurance, specifically how it pertains to severe weather. The report revealed that while 45% of consumers state feeling comfortable with their insurer using AI to monitor and provide real-time alerts about potential weather-related risks, 42% express concern about how the accuracy of those predictions could influence their premiums or coverage. These findings highlight a significant challenge for insurers as they work to balance the introduction of AI-powered preventative services with transparent communication about their reliability and potential financial impact on policyholders. Despite these concerns, there are clear opportunities for insurers to build trust. While 26% of consumers say they are more likely to trust AI-generated early warnings compared to traditional forecasts, only 20% consider it important that their insurer use AI to predict and mitigate severe weather...

CatIQ estimates CAD 991m in insured damage from July flash flooding in Toronto Toronto, ON (Jan. 15, 2025) – Catastrophe Indices and Quantification Inc. (CatIQ) has disclosed its latest industry loss estimate for the flash flooding in southern Ontario between July 15-16, 2024, estimating CAD 991 million in insured damage. During July 15-16, 2024, southern Ontario and Toronto, experienced severe flash flooding due to heavy rainfall exceeding 120mm in some areas, including at Toronto Pearson Airport (123 mm). This was caused by a stationary weather system that brought moisture from the Gulf of Mexico northward. CatIQ’s most recent estimate compares to the third loss estimate of CAD 998 million issued by the company in October 2024. According to the announcement, Personal Property losses made up the majority of the total, accounting for 77% of the industry loss. CatIQ’s initial estimate in August was $940 million in insured damage. Laura Twidle, President and CEO of CatIQ, commented: “July’s flash flooding was the first of four major events to impact Canada in the summer of 2024. This event is currently the tenth costliest insured catastrophe in Canada’s history, ranking just behind the devastating Toronto flooding of 2013. “In terms of total rainfall...

Halifax, NS (Jan. 22, 2025) – QuickFacts, a leader in knowledge management software for insurance brokerages, is proud to announce an expanded partnership with Wawanesa Insurance. This collaboration underscores Wawanesa’s commitment to supporting its broker partners through innovative solutions that enhance access to critical information and streamline operations. With this partnership, QuickFacts will provide Wawanesa contracted brokerages with underwriting information that saves time, reduces costs, and allows them to deliver excellent service through detailed, up-to-date carrier comparisons. This service equips brokers with the tools needed to deliver outstanding service to their clients while navigating a complex and ever-evolving insurance landscape. “We are honoured to strengthen our partnership with Wawanesa Insurance, an organization that is dedicated to empowering its brokers through strategic, forward-thinking solutions,” said Christy Barsalou, President and CEO of QuickFacts. “By offering brokerages who sell Wawanesa products with access to our comprehensive knowledge base, Wawanesa is investing directly in the efficiency and success of its broker partners across Canada.” “This partnership aligns with Wawanesa’s values and commitment to supporting brokers as they guide policyholders through important insurance decisions,” said Paul Fast, Director, Business Development Executive Office at Wawanesa. “Our collaboration with QuickFacts marks an ongoing investment in the broker...

Canadian insured losses from catastrophic events in 2024 totalled CAD $8.5 billion Toronto, ON (Jan. 15, 2025) – The magnitude of catastrophic events experienced across Canada in 2024 pushed the insured loss total for the region to CAN $8.5 billion, according to CatIQ, Canada’s insured loss and exposure indices provider. In addition to the unprecedented losses, the number of total catastrophe claims exceeded 273,000, far in excess of the previous record of 197,000 in 2016. The insured loss figure of CAN $8.5 billion makes 2024 the largest loss year for the country on record, far exceeding the previous record of CAN $6.2 billion recorded in 2016. The largest insured loss years (adjusted for inflation) are: 1. 2024 – CAN $8.5 billion2. 2016 – CAN $6.2 billion3. 2013 – CAN $3.9 billion4. 2023 – CAN $3.6 billion5. 2022 – CAN $3.5 billion While the number of events that generated insured losses in excess of CAN $30 million – which CatIQ categorizes as a catastrophe – was on par with the annual average at 12, the fact that four events generated losses of CAN $1 billion or above made 2024 a record-breaking year. In less than a month, Canada recorded four new...

83% of IT decision-makers across Canada reported progress on their AI strategies in 2024 More than half of Canadian respondents (56%) plan to increase AI investment in 2025 Despite limited return on investment (ROI) so far, Canadian organizations are betting on AI in the long term, prioritizing innovation and productivity gains over traditional financial savings Toronto, ON (Jan. 15, 2025) – Canadian companies surveyed are investing in AI for the long term, with a growing interest in using open-source tools to drive ROI and innovation going forward, according to a new study commissioned by IBM. The study of more than 2,400 IT decision makers (ITDMs), conducted by Morning Consult and developed in collaboration with Lopez Research, revealed that 83% of Canadian respondents report making progress in executing their 2024 AI strategy, with 42% already seeing positive ROI from their AI investments. The data reveals that Canadian businesses are using a combination of buying or leasing AI tools from vendors (65%), using an open-source ecosystem (57%) as compared to in-house development (42%). “This is a crucial year to pivot on AI adoption in Canadian organizations and our success hinges on strategic investments across models, platforms and supporting our people,” said Deb Pimentel,...