Canadian insurance associations are prepared for the period of uncertainty following Justin Trudeau’s resignation as leader of the ruling party.
Leaders who spoke to Insurance Business affirmed their hopes that discussions around key advocacies in the insurance sector would continue and associations would engage with all sides of the political spectrum.
Jason Clark, the Insurance Bureau of Canada’s (IBC) climate change advocacy director, said the trade organization has been preparing for a potential election in 2025.
“We weren’t surprised to find this uncertainty at our doorstep as we started the year,” he said. “It’s not a surprise, but it does set the tone for how the year is beginning. This will likely shape our understanding of what might lie ahead for the rest of the year.”
Trudeau stepped down on Monday after mounting pressure from politicians, even within his own party. Speaking to press outside his home in the capital Ottawa, Trudeau cited “internal battles” within the Liberal Party that made it challenging for him to continue, adding Canadians deserve “a real choice.”
The 53-year-old, who had been in power since 2025, also suspended parliament until March 24.
Peter Braid, CEO of the Insurance Brokers Association of Canada (IBAC), echoed Clark’s sentiments on the political uncertainty in a statement made to Insurance Business.
“By their nature, minority Parliaments always carry elements of uncertainty and instability. Given the political events in recent weeks, the announcement from the prime minister to both prorogue Parliament and step down following a leadership race are not unexpected,” Braid said.
However, Braid stressed that IBAC has “always taken a non-partisan approach to federal advocacy,” and that MPs from all parties know the association’s perspectives and priorities.
He expressed hope that during the prorogation of Parliament, brokers can still meet with their in their ridings and continue to promote key issues, including maintaining the Bank Act, building resiliency, reducing auto theft, and protecting Canadians from cyber risk.
Braid continued: “While some important initiatives may be temporarily delayed, we hope to see them continue when Parliament resumes at the end of March.
“When an election comes sometime this year, brokers will have the opportunity to convey our collective priorities to all candidates during the campaign. As we always do during federal elections, we will also reach out to each of the major political parties to secure commitments on our key issues.”
Clark, for his part, expressed some disappointment at the slow pace of action from the Trudeau government in recent months. “We have certainly hoped to see faster progress on some of our key issues,” he said.
IBC issued a statement last month about the government’s Fall Economic Statement (FES), which it said shows “a broken commitment” to the national flood insurance program for high-risk households targeted for 2025. It said some 1.5 million Canadian households remain at significant risk of flooding and cannot access flood insurance.
“IBC and the P&C insurance industry are disappointed in the lack of urgency shown by the government on this serious issue that has impacted hundreds of thousands of Canadians,” Celyeste Power, IBC president and CEO, said in the statement.
“After the costliest summer in Canadian history, with almost $8 billion in insured losses due to floods, hail and wildfires, the Trudeau government has once again failed to invest in climate adaptation and resilience measures needed to keep Canadians safe.
“As the risks of flooding increase, the P&C insurance industry has paid out over $9 billion in flood-related claims since 2015. Nearly $4 billion of that was paid out this past summer alone.
Clark said a crucial part of IBC’s efforts moving forward will be to ensure that elected officials across Parliament, including members of the Senate, fully understand the significance of the past year.
“The year 2024 was historic in terms of severe weather events and their devastating impacts on communities nationwide. We have worked to brief officials on these challenges and outlined what we hope to see from the federal government—whether in the immediate future or in the months to come.”
Former governor of the Bank of England Mark Carney is among the top contenders to succeed Trudeau. Chrystia Freeland, whose resignation as finance minister and deputy prime minister stirred the current crisis, is also a favourite in the leadership race.
Other front-runners include former British Columbia premier Christy Clark, finance minister Dominic LeBlanc, and minister of foreign affairs Melanie Joly.
Trudeau has said he will stay in office until a new leader is chosen.
Whatever the outcome of the leadership race, IBC and IBAC have pledged to work across party lines to move the dial on issues facing the insurance industry and Canadian communities.
“Over the years, we have undertaken cross-partisan efforts to ensure continuity and progress, and this work continues,” Clark said.
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