The year to come

What is the biggest challenge facing the insurance industry in 2019?

Tina Osen -- President -- Hub International Canada 

The biggest challenge also presents the most opportunity: meeting the needs of today’s changing client. This is the era of the individual. Clients want to be able to engage how and when they want, and demand information at their fingertips. An omni-channel/multi-channel service approach is best to create a seamless experience for clients. Also, as the market becomes more sophisticated, clients expect a broker to understand their unique risks and tailor an insurance program; specializing is the way to do that.  

If we place clients at the center of the equation, our industry will thrive into the future. 

Denis Dubois– President and Chief Operating Officer –  Desjardins General Insurance Group 

The single biggest challenge is improving our relationships with customers. Our industry is lagging when it comes to customer experience, opening the door for new entrants who are more agile and more in tune with evolving consumer expectations.   

Improving customer relationships starts with the development of a customer-centric culture – no easy task.  The next step is smart investments in technologies to provide customers with choice and simplicity, while also improving organizational efficiency and agility. From there, evolving the relationship to focus on prevention and two-way communication is a natural step forward that will strengthen the long-term relationship even more

J. Patrick Gallagher Jr. – Chairman -- President and CEO of Gallagher 

In 2019, general increases across many lines of business can be expected as the global economy remains robust, despite trade tensions. The biggest challenge in 2019 for the insurance industry will be understanding that in an ever developing, technologically driven world, risks are taking on new shapes and more complicated forms. For example, in general, automotive vehicles are safer, and yet auto rates will continue to rise because of how expensive new vehicle accidents are due to the advanced technology contained within the car. In addition, in a data collection environment enabled by evolving technologies, cyber risks continue to rise, making cyber insurance more paramount. 

Looking to the future 

Those not grappling with a shifting landscape already might do well to brace themselves for it: one commentator forecasts that artificial intelligence is likely to have a significant impact in the year to come. 

According to Insurance Nexus Project Director Ira Sopic, speaking in November “A firm idea of what AI is and its relevance is now non-negotiable for anyone who considers themselves a market contender in insurance.” 

Indeed, a survey conducted by the Insurance Bureau of Canada earlier in the year zeroed in on consumers’ desire for a greater reliance on technology: for instance six out of ten Canadians would prefer to have digital access to insurance documents, a figure that rose to 71% amongst millennials. 

"We are living in an age of disruption,” said the institute’s President and CEO Don Forgeron at the time of the survey’s release.  "Only by embracing innovation and new ways of thinking will we be able to keep the door open to new products and services and new ways of delivering them to Canadians."