The Canadian insurance industry is grappling with significant headwinds – and as one of the country’s most established insurers, Wawanesa Insurance isn’t immune to mounting challenges.
Evan Johnston (pictured), Wawenesa’s 10th president and CEO, spoke to Insurance Business about the biggest and how his organization plans to address them.
The increasing frequency and severity of extreme weather events in Canada, for one, has become a major disruptor for insurers. “Certainly, climate change is a challenge facing this industry,” Johnston said. “Better pricing, better segmentation in our product, advancing our prevention agenda is critical. (So is) helping our customers before they even know they need help.”
This proactive approach relies heavily on data and risk assessment. “If we use our data better, we use our mutual structure better to our advantage, we can achieve that,” Johnston said.
Another issue looming over the industry is the effect of US tariffs on the Canadian economy. Johnston expects tariffs from Canada’s closest neighbor to raise prices on goods such as auto parts and lead to further claims inflation when profitability in auto insurance is already under pressure.
“We need to work with our industry and government partners to ensure that we have a product that not only is palatable for the insurance companies, but most importantly, responsive to the needs of consumers,” he said. “That’s going to be an ongoing discussion through IBC (the Insurance Bureau of Canada) and other industry partners.”
At the same time, the industry’s search for talent remains top of mind. “The attraction and retention of talent is always an issue,” Johnston said. “But I can assure you that Wawanesa is up for these challenges, and we’re looking forward to realizing the opportunities that come with these.”
Wawanesa has weathered countless industry challenges in its 128-year history, but it isn’t done evolving. Last month, the company announced it was moving away from a regional East-West operational structure to a business-line model.
For Johnston, the move was about one thing: clarity. “I wanted to drive more accountability into our key business lines,” he told Insurance Business.
In the previous structure, responsibilities were spread across regional leadership. Now, there are defined leaders for personal lines, commercial lines, life insurance, and the Western Financial group.
Johnston made it clear that this shift also serves as a statement on leadership direction. “I wanted an opportunity to signal that my bias is to promote from within at the most senior level,” he said.
Two key appointments stand out: Kim Palatnick, who now leads personal lines, and Randy Dhillon, who takes charge of distribution and regional operations. Both have long track records in the industry, as well as with Wawanesa. “I’m excited about their perspective and energy that they will bring to the most senior level in this organization,” Johnston said.
Beyond internal operations, the changes aim to improve how Wawanesa interacts with its distribution partners. Johnston described those partnerships as a top priority.
“We’re always looking at ways that we can serve them better,” Johnston said. “I believe that this will serve them better in providing more clarity on who owns what line, more responsiveness to their questions.”
Ultimately, the reorganization underscores Wawanesa’s commitment to adaptability in an evolving market.
“We are evolving as an organization,” said Johnston. “We need to be more accountable, more responsive. We need to make decisions quicker, and we need to serve our stakeholders better.”
Do you agree with Wawanesa CEO Evan Johnston’s views on the biggest challenges in Canada’s insurance industry? Please leave a comment below.
