Threat to Opportunity: Driving Growth in Ontario

It’s an interesting time in the Ontario insurance market. We’re recovering from severe flooding in the southern part of the province. We remain the auto theft capital of Canada. The needs of our customers, especially in the commercial space, are evolving. While these trends present challenges, they’re also an opportunity for brokers to step up with expert advice and guidance to help customers when they need it most. 

Adding value in the commercial market

The commercial market space is always challenging, never more so than in the current, fast-evolving business environment. The good news: many insurers, Intact among them, are broadening their appetites and redefining their risk mix. We want to collaborate with brokers to come up with insurance solutions across most industry segments, including chasing business previously sent to MGAs. 

We’re leveraging the deep commercial lines expertise and specialty capability we expanded with the RSA acquisition to deliver solutions for the largest and most unique risks. We’re leveraging AI to deliver competitive prices and comprehensive, flexible products. And we’re working hard to make standard SME quotes easier and faster for brokers to bind. 

In this competitive and complex landscape, commercial customers need insurance solutions that align with their business priorities. They need their broker to be a part of their team, a genuine business advisor. This presents a tremendous opportunity for brokers to demonstrate their value as they place their customers with the right, stable market.

Becoming experts on extreme weather

This summer’s floods across southern Ontario reminded us how severely extreme weather events affect our communities. Climate change is an existential threat to our industry and to society. In a world in which catastrophic 1-in-100-year events hit every other year, insurance has never been more important. The same goes for the role of the person selling it.

Selling is perhaps no longer the right word. Today, brokers are educators and risk mitigators rather than salespeople. Brokers need to be experts, not just on the increasingly nuanced insurance products carriers put out in response to weather threats, but also on the climate adaptation measures they can advise customers to take in advance of the flood, fire or storm. The brokers who rise to this challenge and fill that expert advisor role will have a powerful competitive advantage.

For insurers, taking action on extreme weather is non-negotiable. At Intact, we’ve been at the forefront of climate change for more than a decade. Our investment in the Intact Centre on Climate Adaptation supports science-based research and implementation of practical solutions to help communities be more resilient. Our Municipal Climate Resiliency Grant program helps municipalities, registered charities and indigenous communities implement practical solutions that address the effects of extreme weather including flooding and wildfires. Above all, we’re continuously refining our products, and improving our claims system, so that we can be there for your customers when they need us the most.

Taking action on auto theft

Auto theft is another crisis where brokers and insurers can be part of the solution. Auto theft numbers in Ontario have dipped in the first half of 2024 over their 2023 heights—that year, auto theft claims costs crossed the $1 billion mark in Ontario alone and the impact on car insurance premiums has been considerable. Insurance costs for some high-risk cars may have gone up by as much as 37%, and the theft risk is a big part of the average 7% increase in auto premiums Ontarians saw last year.

Auto theft is a whole of society problem, and the need for governments and law enforcement to attack the root cause of auto theft – namely, that Canada is seen as a low-risk destination for international auto theft rings – remains. 

Meanwhile, brokers and insurers can help customers protect their vehicle and avoid the emotional stress, inconvenience and potential cost of dealing with a stolen car by encouraging them to get superior anti-theft technology, such as Tag Tracking. These technologies are quick and easy to install, have a near-perfect recovery rate and act as a powerful deterrent to criminals.

Turning threats into opportunities isn’t easy. But it’s essential, and, in the insurance industry, it’s how we deliver value to customers and fuel the growth of brokerage and carrier businesses.