When Matthew Carr (pictured) started in insurance, he wasn’t the first Carr to do so. He was born into the business, following his dad’s footsteps to run a business that is now over 70 years old. And one thing that is as true now as it was when his father started out – the future of Gifford Carr Insurance Brokers Group is tied to the success of Canada’s small businesses. As the president of the brokerage with roots that stretch back to 1948, Carr knows that small businesses are the backbone of the economy – but he also understands the mounting challenges they face in an increasingly volatile world.
“Small businesses are the bread and butter of the industry,” Carr said. “But the challenges they’re facing today require a completely different approach. It’s not enough to offer a one-size-fits-all solution anymore.”
For Gifford Carr, this shift has meant embracing complexity. From its beginnings as a generalist brokerage in Ottawa, the firm has evolved into a specialist operation with expertise in a wide range of sectors, from mining and marinas to large fleets and cross-border construction. However, small businesses remain at the heart of its operations.
A changing risk landscape
The pandemic permanently altered the small business landscape, and Carr sees those changes continuing to shape the industry. Many owner-operators, once confined to traditional roles like electricians or contractors, are now expanding their services to stay competitive.
“We’ve seen a real shift,” Carr said. “These businesses aren’t just sticking to what they’ve always done. They’re branching into new areas, which brings a completely different set of risks.”
That diversification, while necessary for survival, creates unique challenges for insurance brokers. Carr points to examples like landscapers taking on snow-clearing contracts in the winter or contractors adding cross-border work to their portfolios. “Those shifts might seem small,” he said, “but they completely change the risk profile of the business. If we don’t understand those changes in detail, we can’t protect them effectively.”
Carr emphasized that the days of selling “off-the-shelf” insurance packages to small businesses are over. “Every business has its nuances,” he said. “And as they evolve, it is important for their insurance policy to evolve with them."
Economic pressures mounting
Beyond operational changes, Carr predicted that economic pressures will hit small businesses hard in 2025. A weak Canadian dollar, rising unemployment, and tightening credit markets are squeezing cash flows, forcing business owners to make difficult decisions about where to cut costs.
“When budgets get tight, insurance is often one of the first things on the chopping block,” Carr said. “But that’s a dangerous move. If something goes wrong – whether it’s a cyber breach, a liability claim, or a property loss – not having the right coverage can be catastrophic.”
Carr said that his team has seen businesses make rushed decisions to save money, such as dropping coverage or switching to policies that don’t fully meet their needs. “Too often, people don’t realize the full implications of those decisions until it’s too late,” he said.
Adapting to meet small business needs
Gifford Carr isn’t just responding to these changes; it’s actively preparing for them. A major part of the firm’s strategy for 2025 includes a sweeping technology transformation aimed at creating efficiencies and giving brokers more time to focus on proactive client support. “We’re reimagining what tools an insurance broker should have at their fingertips,” Carr said.
While technology is a critical piece of the puzzle, Carr insisted that the human element remains just as important. “There’s still a high expectation among small business owners that they’ll be able to speak to a broker,” he said. “It’s about striking the right balance – using technology to streamline processes without losing the personal touch that’s so critical in this industry.”
The firm is also paying close attention to emerging risks, particularly in cyber insurance, which Carr believes will be a growing concern for small businesses. “The frequency and severity of cyber fraud incidents are constantly increasing and at a concerning rate” he said. “But the reality is, we’re not collecting enough premiums to match the size of the claims. The industry has to address that gap, and we’re watching closely to see how it evolves.”
