The nature of insurance claims in Canada is shifting from volume to complexity, driven by legal, technological, environmental and behavioural forces that are reshaping risk and response.
Liability claims in particular are evolving, influenced by social inflation, higher healthcare costs and changing claimant behaviour. More disputes are going to trial rather than settling early, and class action interest is slowly rising, creating longer timelines and greater exposure for insurers. Litigation funding is becoming more common in Canada, enabling third parties to back lawsuits that might previously have ended sooner, which in turn can stretch out claims cycles and increase costs.
Canadian firms with U.S. exposure feel added pressure from litigation and severity patterns south of the border. At the same time, cyber risks are growing in sophistication, with artificial intelligence amplifying threat actors and creating loss scenarios that demand expert underwriting and rapid claims response.
In this environment, the role of the insurance provider extends beyond traditional coverage. Leaders in the industry are adapting by building deeper expertise, enhancing speed of response and offering proactive services that help manage risk before losses occur. For policyholders, this means access to a partner that not only pays claims, but anticipates and mitigates emerging exposures, creating resilience and confidence in uncertain times.
Read more on: InsuranceBusinessMag.com