Insurable Interest Canadian Insurance Blog

Chicago, IL (July 21, 2025) – Morningstar DBRS has released a new report, titled Insurance Companies Increasingly Look to AI for Growth and Profitability, which provides an overview of key areas of insurance value chain that stand to benefit from artificial intelligence (AI) adoption as well as the risks that insurance companies are exposed to with the adoption of AI. Overview Investments in artificial intelligence (AI) hold a lot of potential for insurance companies’ growth and profitability but also entail many risks. While machine learning, natural language processing and predictive analytics have long been part of sophisticated insurers’ underwriting models, the adoption of these and other AI-powered technologies has become more widespread and essential to maintaining competitiveness. As a result, according to a survey by Wipro Limited (Wipro), North American insurers have increased the proportion of investment technology (IT) budgets allocated to AI technology to more than 20% in about three to five years, from 8% in the 20241 (Exhibit 1). In this commentary, we provide an overview of key areas of insurance value chain that stand to benefit from AI adoption. We also discuss the risks and challenges of AI adoption, which present an important part of our credit...

Toronto, ON (July 15, 2025) – In July 2024, residents in Toronto and across the GTA faced devastating flash flooding that led to prolonged power outages and nearly $1 billion in insured damage to personal property, including homes, businesses and vehicles. The massive flood contributed to the more than $9 billion in insured losses recorded in 2024 – the most destructive year for insured losses in Canadian history. The speed and intensity of the floods serve as a stark reminder of nature’s destructive power – and the critical need to mitigate risk before disaster strikes. “Insurers were there for their customers – and always will be – but this event reminds us all of the importance of being prepared for the worst,” said Amanda Dean, Vice-President, Ontario and Atlantic, Insurance Bureau of Canada (IBC). “Flash floods, like wildfires, can often occur with little to no warning. Taking proactive steps to prepare for a severe weather event is not only important for your personal safety, but for your financial security. IBC wants to ensure residents across Ontario are fully prepared for the potential hazards posed by extreme weather events this summer.” IBC’s top 10 tips to help protect your property from...

Berg Insight estimates that 78 percent of all cars sold worldwide in 2024 were equipped with OEM embedded telematics. Applications include eCall and roadside assistance, stolen vehicle tracking, vehicle diagnostics, connected navigation and infotainment, Wi-Fi hotspot, convenience applications, over-the-air updates, in-vehicle payments, usage-based insurance, leasing and rental fleet management, as well as electronic road charging.  Gothenburg, Sweden (July 21, 2025) – IoT analyst firm Berg Insight has released a market report, The Global Automotive OEM Telematics Market – 10th Edition, which analyses the latest developments on the connected car market worldwide. This study provides 270 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base business decisions. Virtually all of the world’s leading carmakers have launched mass-market services in key regions today. Berg Insight estimates that 79 percent of all new cars sold worldwide in 2024 were equipped with an OEM-embedded telematics system, up from 75 percent in 2023. The eCall mandate in EU27+EFTA+UK has accelerated the adoption of telematics, making it a standard feature in nearly all new cars sold in the region in 2024. By 2025, the attach rate in EU27+EFTA+UK is expected to reach 100 percent, up from...

New Brunswick emerges as the Atlantic auto theft capital, with highest claims costs in 2024 Toronto, ON (July 14, 2025) – New data released by Insurance Bureau of Canada (IBC) show that the cost of auto theft in the Atlantic region has risen dramatically over the past decade in all four provinces, especially in New Brunswick. Despite dipping slightly in 2024, Atlantic Canada has seen an alarming increase in both the number of auto thefts and the related costs since 2014. Last year, auto theft insurance claims costs exceeded $31 million compared to $8.4 million in 2014 – a staggering 275% increase. New Brunswick has become the auto theft capital of the region, with 788 auto theft claims in 2024 at a cost of over $16 million. Auto theft–related claims have increased 228% since 2014. Over the past decade, the three cities in Atlantic Canada with the largest increases in claims costs due to auto theft are all in New Brunswick: Saint John (520%), Moncton (746%) and Fredericton (1,672%). “All orders of government should continue to take action on the auto theft crisis in Atlantic Canada and across the country. However, it is most critical to tackle the crisis in...