As we move into 2025, the significant macro trends and challenges that have shaped 2024 will continue to influence the Canadian commercial insurance market. The following factors will be top of mind:

Climate change adaptation — Effective risk management, resilience and climate adaptation remain crucial as extreme weather events like those seen in 2024 persist.
Geopolitical risk — Global conflicts and supply chain disruptions are ongoing concerns, heightening risk for businesses across sectors.
Economic conditions — With inflation stabilizing and the threat of recession receding, companies may find relief, but financial uncertainty still looms.
Talent development — Attracting, developing, and retaining top talent is more important than ever. Success starts with building an inclusive and dynamic culture where employees feel engaged and supported. This focus on culture is the bedrock of any organization’s ability to foster innovation, deepen client relationships and deliver superior service.
Specialization and expertise — Clients increasingly value carriers that offer deep expertise, creative solutions and superior risk management services. In a market fraught with risk, having a carrier with specialized knowledge is essential.

In 2025, technology will continue to play a critical role in how insurers operate. Artificial intelligence (AI), data analytics and other technology advancements are reshaping risk assessment, client engagement and overall efficiency. These tools can help insurers act faster and make more informed decisions, enhancing everything from underwriting to claims management. They also introduce risks such as over-reliance on AI, cybersecurity threats and the misuse of emerging technologies like deepfakes. Insurers must balance leveraging these advancements with maintaining human oversight to ensure responsible, effective use. In an evolving technological landscape, the successful companies will be those that are effective at combining technological innovation with a human touch.

Another key focus for 2025 will be the role of the insurance industry in supporting communities affected by weather events, economic hardship and geopolitical tension. This responsibility extends beyond financial support — it’s also about playing an active role in our communities.