In an era of relentless change, Canadian insurance brokers are facing down a whirlwind of challenges. From natural disasters to inflationary concerns to new legal loopholes, heading into 2025 the future looks anything but easy. Traci Boland (pictured), chair of IBAC and partner at Ontario West and Bill Blaney Insurance Brokers, pulled no punches when discussing the regulatory, technological, and environmental forces reshaping the industry – especially where laws are concerned.
“The regulations across Canada are coming at a fast and furious pace right now,” she told IB. From auto reforms to stringent privacy laws, brokers are navigating an unrelenting wave of policy updates. “It would be much easier if all provinces would get together and streamline the regulations. These regulations are set there for consumer protection, which is why brokers exist in the first place. IBAC, IBAO and all the other broker associations are the conduit between consumers, brokers, and government. They’re at the table with the federal and provincial governments while these regulations are being thought through.”
The rise of digital tools has undeniably altered the brokerage landscape. Data from Statistics Canada found that in 2024, 6.1% of all Canadian businesses utilized AI in producing goods and delivering services. The main uses of AI here were noted to be collaboration tools (32.2%), security software (28.7%) and cloud solutions (27.1%).
Boland said that brokers have achieved unprecedented unity in recent years in regards to new tech.
“We’re no longer a fractured voice,” she said, pointing to milestones like the standardization of e-docs and coding systems. These achievements streamline operations, enabling brokers to dedicate more time to serving clients. But the financial burden of adopting new technologies often falls disproportionately on smaller brokers. “The downfall is, it’s expensive, especially for small to medium-sized brokers,” Boland said.
Boland described the upcoming launch of IBAC’s updated tech webpage as a potential game-changer.
“We’re just out there, wanting to educate brokers on what’s available, the pricing, and how it works differently,” she said. By demystifying technology and offering tailored advice, the initiative aims to “take the fear and anxiety out of it.”
Yet, Boland is pragmatic about the human element. “There’s still consumers out there that want to do it the old-fashioned way,” she said, noting that brokers must adapt their services to meet diverse client preferences. The true challenge lies in balancing innovation with personalization – a task brokers cannot afford to sideline if they want to thrive in the digital age.
For Boland, climate change represents both a critical issue and an opportunity for brokers to redefine their value. “This is our time to shine,” she said. “There are so many tools that are out there for consumers to use to proactively ensure that they’re minimizing the risk.”
Boland also spotlighted the National Flood Insurance Program as a vital industry initiative.
“We want to ensure that the industry stakeholders and us are creating a program that works with the existing private sector,” she said. This program, aimed at protecting high-risk homeowners, underscores the collaborative effort required to tackle complex climate challenges. “It’s just for high risk properties, but we want to ensure that this National Flood Insurance Program gets going and is started for 2025,” she said.
Brokers must also bolster their knowledge in emerging risk areas, as Boland learned firsthand. A cyberattack on her own brokerage served as a wake-up call.
“I thought I knew the cyber product. I didn’t,” she said. “We need to ensure that our clients are aware of exactly what will happen to them when the cyberattack happens. Without a great product, we might not have survived it.”
Yet, despite the challenges, Boland remains optimistic about the future of Canadian brokers. The keys to success, she suggested, lie in advocacy, adaptability, and education. Brokers must act as stewards of consumer trust, ensuring their voices are heard in policy discussions while staying ahead of technological and environmental trends.
“It’s better to pay it at the front than paying it at the end,” Boland said.
