The insurance industry is not for the faint of heart – climate change, evolving technologies, and increasingly stringent regulations have forced brokers to reimagine how they deliver value to their clients.
Research from Canadian Disaster Database showed a 379% increase in average annual insurable losses in the past 10 years in Canada, with climate related incidents alone costing individual Canadians an additional $409 per year in home insurance premiums. For Richard Pereira (pictured), of Jones DesLauriers Insurance Management, staying ahead of these market challenges means constant adaptation, a deep understanding of risk, and a relentless focus on client education.
At his branch, Pereira deals primarily with retail personal lines – insuring everyday citizens rather than high-net-worth individuals. And while this sector might appear straightforward, climate change has introduced a level of complexity few could have predicted.
“Flooding is a major concern for your average citizen when it comes to their property or even their automobile," Pereira said. Addressing these risks requires collaboration with insurance companies to develop products that meet evolving needs.
“Our job is to guide clients through the options – what’s covered, what’s excluded – so they can make informed choices.”
This client-centric approach has become particularly critical as insurers withdraw from high-risk areas. Pereira recounted the challenges of finding coverage for properties once deemed insurable but now considered too risky due to environmental factors.
"Being an insurance broker gives us access to multiple markets, including managing general agents. If one market pulls out, we often have another option," he told IB.
Still, clients need to adjust their expectations as premiums rise or coverage diminishes.
“The general public has to learn to adapt to the changing mood of the market,” Pereira said. “[It’s about] being able to work with our insurance companies to have them realize that [while] it is a risk…this is the way the markets are going,”
It’s a harsh reality for many homeowners, yet it underscores the increasing value of brokers in navigating these complexities. From January 2023 to January 2024, home insurance premiums in Canada rose by an average of 7.66%. For instance, in Ontario, the average home insurance premium was $1,913 in 2024, up from $1,633 in 2023 and $1,461 in 2022, marking a 17.1% increase over one year and a 30.9% rise over two years.
Pereira believes that the role of brokers is growing more essential as risks become harder to assess.
“The value we provide is in doing the work for the client – accessing multiple markets, understanding the exclusions, and finding solutions for the hard-to-place risks,” he said.
The shift isn’t limited to environmental challenges. Technology is also reshaping the industry, with insurers integrating AI-driven tools to improve efficiency. While Pereira acknowledged the advantages of tech – like automated claims updates and digital liability cards – he was cautious about over-reliance.
“AI chatbots have their place, but they’re only as good as their programming,” he said, highlighting the risks of outsourcing development. “Most people still want a human element when dealing with their policies or claims.”
And this sentiment certainly chimes with overall market opinion. Data from Talker Research found that 88% of respondents prefer to receive insurance guidance from a human – despite growing investments in tech by brokers and agencies. This human touch is particularly important in providing a personalized customer experience. Pereira noted that his team works with a mix of “old-school clients who prefer paper policies” and younger clients who favor digital interactions. And adapting to these preferences without compromising service quality is crucial.
"Regardless of how the client wants to communicate, the job remains the same – finding the best coverage for their needs and educating them about risk mitigation," he said. Here, Pereira credited much of his leadership style to his time in the military, where he learned the importance of looking after his people.
"On a ship, it’s essential to keep your team motivated and informed," he told IB. “The same applies here. Without a strong, supported team, you have nothing. Changing conditions in the military might be more extreme, but the ability to stay calm and focused translates directly into civilian life.”
Navigating these challenges requires more than technical expertise; it demands a clear vision for the future. For Pereira, this means embracing change while maintaining the personal connections that have long defined the industry. As technology continues to evolve, he believes that brokers who balance innovation with humanity will thrive.
“It’s not about replacing people with machines,” he said. “It’s about using technology to free up time so we can focus on what really matters – serving our clients.”
