2024 was a challenging year for many Canadians. Many across the country felt the impact of severe weather events that caused widespread damage. Spikes in vehicle thefts also added to Canadians’ stress.
To provide widespread coverage, insurers need greater pricing differentiation based on different perils. For example, those living in high-risk or very high-risk zones for flood, hail or wind can expect to see variability in pricing, terms, deductibles and sub-limits. We will continue to see increased insurance premiums on auto and property, combined with more limited availability and scope of insurance.
In commercial lines, we expect increased competition driving downward pressure on prices in the large account space, offset by hard reinsurance market conditions in certain classes of business.
I feel strongly about the momentum of our business. I’m optimistic 2025 will bring ample opportunities, meaningful growth and stronger collaboration between insurers, brokers and stakeholders. We are also keeping our eyes on headwinds and the macroeconomic environment. Rising claims costs, increasing severe weather-related events and a lower interest rate environment mean we need to make the right choices, including taking rates and underwriting actions, maintaining discipline and speed of execution to run the business sustainably.
We’ve made some good strides collaborating with brokers, the industry and governments on pressing issues like auto theft, but the most urgent challenge we face is the growing impact of climate change and catastrophic weather events. Our industry and governments must prioritize the climate crisis and work more closely to ensure long-term resilience.
As well, we must tackle critical issues like auto reforms and ensuring insurance remains affordable, especially in provinces like Alberta. Stronger collaboration with governments is essential to help Canadians and our industry balance affordability and sustainability in the face of rising claims costs, auto theft rates and the need for investment in infrastructure.
