In a market facing geopolitical uncertainty, digital disruption, and shifting customer demands, the greatest risk for Canadian insurers may not be cyberattacks, natural catastrophes, or even prolonged soft market conditions.
Instead, it is the danger of clinging to business models that no longer fit the times, according to Nigel Branker (pictured), president and CEO of Securian Canada.
“The biggest risk of all within the insurance industry is whether established business models will still be relevant in a new environment,” Branker told Insurance Business. “Only those insurers who are agile and adaptable to change will meet the needs of the future.”
Branker noted that Canada’s soft market conditions are unlikely to vanish quickly. Insurance cycles, he explained, are shaped by a combination of factors including global capital flows, catastrophic events, and regulatory environments.
While soft markets inevitably give way to harder conditions over time, the pace of change can be slow and difficult to predict.
Soft pricing pressure, abundant capacity, and competition are expected to persist in the near term, but Branker emphasized that these forces are part of a recurring cycle familiar to insurers worldwide.
“Soft markets don’t last forever, but they don’t disappear overnight either. The Canadian regulatory and financial services markets have faced challenges in the past, and I’m confident Canadian companies will remain resilient in any geopolitical or economic environment that comes our way,” he said.
Canadian insurers have already adopted AI and digital tools to streamline operations, particularly in areas such as risk assessment, claims handling, and back-office efficiencies. But Branker pointed out that the most significant opportunities lie in improving the customer journey. Faster response times, transparent information, and user-friendly digital platforms are increasingly seen as baseline expectations rather than differentiators.
Consumers are also comparing their insurance experiences to other sectors, such as banking, where speed and convenience are standard. This shift is pushing insurers to rethink how policies are purchased, managed, and serviced, he said.
At the same time, growth opportunities are emerging in underserved segments. Canada’s evolving demographics – including a higher proportion of newcomers and younger workers – are reshaping demand. For example, 51% of newcomers fall between the ages of 18 and 34, compared with only 22% of the general Canadian population. Many of these consumers, along with gig economy workers, expect flexible, digital-first insurance solutions that match their lifestyles, Branker said.
For Branker, adaptability is not just another strategic priority – it is the foundation that will determine which insurers thrive in the years ahead. While Canadian insurers have weathered past cycles and disruptions, he argued that relying on traditional playbooks will no longer be sufficient.
“While some business models have worked well in the past for Canadian insurers, it is essential to embrace change,” he said. That change, in his view, comes in several forms: adopting AI and digital solutions, rethinking product design, and most importantly, reshaping the customer experience to reflect today’s realities.
The complexity of the Canadian market underscores this need. Demographic shifts, evolving consumer expectations, regulatory changes, and the growing impact of climate events are combining to create an environment where old habits can quickly become liabilities. Branker emphasized that insurers must be willing to reassess what has historically worked, even if it still feels comfortable.
He pointed to Marshall Goldsmith’s book What Got You Here, Won’t Get You There as a useful analogy for the sector. Success in the past, Branker explained, was built on certain practices and assumptions. But reaching the next stage will require the industry to let go of outdated habits and embrace new ways of serving Canadians.
Adaptability also means moving beyond cost reduction as the primary goal of technology adoption. Instead, digital transformation should focus on creating smoother and more meaningful interactions, from simplifying onboarding to accelerating claims settlement. “To be successful and reach your full potential requires you to assess your behaviours and habits of the past and consider adjustments to thrive in a new environment,” Branker said.
“As the world evolves, so too will we,” he added.
