As 2025 approaches, experts from Ratehub.ca have shared their forecasts for trends in Canada’s insurance market, emphasizing shifts in auto, home, and life insurance that may impact consumers.
Government action on rising rates
Alberta and Ontario are expected to take steps to address the ongoing challenge of rising auto insurance rates. Morgan Roberts, VP of RH Insurance Brokerage, acknowledged the provincial governments’ intent to ease financial strain on consumers. “Only time will tell if the measures will be effective,” she noted. “In the meantime, as insurers adjust their strategies on pricing and coverage options, you can take proactive measures by consulting a trusted insurance broker for insights on future policy changes.”
Auto theft drives premiums higher
The increasing prevalence of auto theft remains a significant driver of rising premiums. Matt Hands, VP of insurance at Ratehub.ca, highlighted insurers’ adoption of anti-theft measures like TAG technology as a stipulation for vehicle insurance. “Early results have looked promising,” Hands noted. “Don’t be surprised if your insurer has this as a stipulation for insuring your vehicle in 2025.”
Shifting demand
With a robust housing market anticipated in 2025, demand for property insurance products is expected to rise. “This means the insurance industry needs to be ready for the increased demand for home insurance-related products – whether it be homeowner, condo or tenant insurance,” said Hands. “We expect a higher volume of Canadians to be shopping the market for the best rates compared to the previous two years.”
Severe weather impact
The rising frequency of severe weather events continues to pose challenges for insurers, contributing to higher renewal pricing for homeowners. Roberts explained, “While we don’t anticipate any major policy changes or coverage limitations in 2025, it is important to remember that the insurance industry is analyzing how to best move forward with the increased frequency of catastrophic losses.” She advised consumers to consult their brokers for assurance on coverage adequacy.
Term life insurance maintains popularity
The popularity of term life insurance is set to persist in 2025, with sales expected to remain strong. Jeffrey Talor, director of sales at CanWise Insurance Services, linked this trend to heightened awareness of financial planning challenges. “The need for life insurance has only heightened since the pandemic, which is reflected in the record-breaking sales numbers for the past four years,” Talor noted. “As reported by the CLHIA, we expect a strong year for sales in 2025 with term life continuing to be the product of choice.”
Innovative living benefits solutions
As Canadians face rising healthcare costs and limitations within the public health system, demand for innovative living benefits policies is predicted to grow. “Living benefits are more important now than ever, and demand for these products can be expected to grow as awareness increases,” Talor said. “With life expectancy going up, many Canadians may need funds for long-term care down the line. Plus, the country’s public health care system has its limitations, such as long wait times, and a living benefits policy can help you seek international care privately – especially as health issues become more and more prevalent.”
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