How big is the insurance industry in Canada?

• Posted by Riley Claire May 17, 2023 Filed in Technology #insurance industry in Canada  #Canadian insurance industry  302 views
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  The insurance industry in Canada is humungous in terms of size and profitability. Though there have been a few hurdles in Canada's insurance industry, but, eventually the insurance market has witnessed a slight upward trend. The insurance sector is one of the important sectors in Canada that effectively contributes towards economic development. To top upon that the large-scale insurance corporations in Canada have minted billions of dollars by providing insurance services. In this article, you will get to know how big is the insurance industry in Canada.
  
  

  
  
  

  Canada's Insurance Market:
  
  The insurance industry in Canada is huge in terms of both scale and revenue generation. With estimates of over a trillion dollar business from the Canadian insurance market, there is huge potential both from a revenue and sustainability perspectives. Some of the leading insurance corporations have projected that their total assets have only grown.
  
  

  There is no doubt that there were certain pitfalls and specific issues that slowed down the insurance industry in Canada, but, slowly and steadily the growth trajectory is seeing an upward trend. According to research, the Canadian insurance industry will grow steadily eventually contributing to the economy. The research firm also added that both Property and Casualty (P&C) and Life and Health (L&H) segments may boost the Canadian insurance industry.
  
  

  Following are the five key trends that propel the Insurance industry in Canada to an all-new level:
  
  

  1. Leveraging cognitive capabilities: Intelligent automation, Machine Learning (ML) and Artificial Intelligence (AI) has the potential to enhance all aspects of the enterprise. The insurers should take up the challenge to know about the cognitive capabilities and how they can be integrated into systems and then embedded in the value chain.

  The virtual processing of claims has only increased and hence there is a strategic need for cognitive technologies.
  
  

  2. Considering the impact of climate change: An urgent priority that needs to be dealt with by insurers and consumers alike is the emerging climate-related risks. As the effects of severe storms, wildfires, flooding and melting ice caps are increasing in Canada, the volume and diversity of claims are multiplying.
  
  

  3. Cybercrime and fraud need to be prevented: Digital channels are where more customer interactions are moving and hence there is an increase in cyberattacks and fraud. Identity fraud is being used by malicious users to submit false claims or in certain scenarios, the payee information is changed so that the insurance funds can be diverted to their accounts. According to research, insurance fraud costs Canadians to lose billions (approximately) every year. The numbers might change.
  
  

  4. The operational efficiency is scaled up: As carriers grow and expand, there will be scenarios where they may become more operationally inefficient. Scaling becomes difficult when processes are inefficient, which, in turn, may cause issues pertaining to revenues. Increased automation in underwriting has been cited as the top priority by insurers that could lead to greater efficiency.
  
  

  Leveraging modern data platforms, process automation and cloud technology can help insurers scale their businesses cost effectively and efficiently.
  
  

  5. Personalized customer experiences need to be created: As customers seek guidance to select the specific right coverage for their particular insurance needs, interactions and digital insurance experiences are expected by customers that offer greater choice, more value, simplicity and personalization. With the advent of "digital insurers", insurers started creating digital channels to address their specific needs.  

  Insurers are looking forward to moving beyond the current transactional digital experiences to an interactive experience that can identify and solve unique customer requirements.
       

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