It’s a brokers’ game, say commercial insurance experts
How can AI bring us closer to customers faster? How can we evolve our talent pool to keep pace? And how can we navigate a landscape of constant change to uncover opportunities in uncertain times?
These were some of the questions guiding Wawanesa’s recent industry panel discussion on the future of commercial insurance.
Panel experts affirmed that the Canadian commercial insurance market is undergoing a multi-faceted transformation. Shifting regulatory requirements, rapid technology adoption, a widening talent gap, and evolving customer needs are complicating industry operations, leaving many clients underserved despite having more assets to protect and more varied risks.
Within these complexities lie opportunities for brokers who innovate and adapt. By uniting as a team with insurers, brokers can harness these complexities and deliver helpful advice to empower businesses with confidence in uncertain times.
A brokers’ game
Panelist Brett Boadway, COO at IBAO, was quick to recognize the business industry’s heavy reliance on insurance brokers. Quoting IBAO president Dario Battista, Boadway told attendees, “He once said to me that every business…needs three professionals in their life: an accountant, a lawyer, and an insurance broker. And I thought that was quite profound.”
“(The above) numbers are translated when you look at the broker market share in the commercial lines space across all lines of business,” continued Boadway, citing her own MSA Research data query, “So, this is a broker game for sure.”
Echoing this sentiment, Anna McCrindell, Wawanesa’s SVP & COO – East underscored the critical role of brokers as advisors for business clients. “Never has there been a more important time for brokers to bring expertise. Insurers and brokers, we're experts in mitigating when things go wrong.” Further, McCrindell explained that when brokers bring their expertise to both the fulfillment and prevention stages before an event arises, it provides more certainty for clients.
Data: your teammate in decision-making
Given the rapid advancements in data analytics and AI, it’s no surprise that technology was a recurring theme throughout the event, whether discussing regulations, recruiting, or service. Despite the headaches associated with migrating to current platforms, panelists were resoundingly positive about the advantages data can provide to win business and enhance customer experience.
“Data is such a competitive advantage and one that we are leveraging as much as possible. I have an example where we successfully won a very large national account,” McCrindell shared, “and the piece that won it was our analysis of the data.”
Brokers have a significant opportunity to unlock new markets by delivering meaningful risk management advice built on continuously improving data from AI and automation platforms. James Colaço, Global Insurance Sector Leader at Deloitte emphasized the potential data has to transform the industry. “I think the application to our industry and insurance is phenomenal because we live in such a data-rich world—from actuarial data to the customer data, to claims data and underwriting data,” Colaço explained.
The increasing use of Robotic Process Automation (RPA) and machine learning for predictive models has shown promising results, but the industry remains slow to adopt AI. With the advent of large language models and generative AI, brokers can now collaborate closely with insurers to utilize custom risk assessment data.
Behzad Salehoun, Partner & Head of Insurance at Capco, stressed the importance of teamwork when describing a “supply chain” flow to data in the future. "That requires the insurer to work with the broker to then work with the customer,” he noted. “It's transformed and then presented in this sort of beautiful experience as a risk prevention and risk management tool.”
Employees: the all-stars of your team
Technology shifts were also central to discussions around attracting and retaining employees. As a younger, more diverse workforce emerges, this ‘traditional’ industry may struggle to attract tech-savvy team members. Innovative tools need innovative users. The panelists agreed, advocating for creative approaches to succession planning and continuous investment in training to remain competitive.
“I think the solution is talent—and investment in talent. There's a wave of change coming at brokers, from regulation to technology to consumer expectations,” said Boadway, “And I think the only way, or the best way, to face those challenges is to invest in the talent in your own brokerage, developing proper training paths, and also contributing to industry organizations that are building foundation training programs.”
Colaço also recognized both the challenges and importance of bringing in talent to maintain complex data models over time. “I think it presents an incredible opportunity for this industry to fundamentally change the economics and to drive a fundamentally better customer experience.”
The industry: an innovation ally
Brokers continue to face increasing pressure from clients to deliver faster service and more visibility into how they operate. Despite a strong emphasis on technological innovation, our panelists still felt tried-and-true methods—such as a compelling value proposition and strong relationships—were equally paramount to a broker’s success as the insurance industry progresses.
“One of the biggest opportunities for brokers is to continue to show and demonstrate the value that you bring. And it's not just about price,” advised McCrindell. “It's about expertise, building out holistic solutions that may go across coverage. Life, P&C, that whole solution that addresses this complex environment.”
McCrindell highlighted another key broker strategy: building partnerships with insurers. Start thinking about insurance as a team sport, and you’re not in this game alone. “We have your back. We are in this together—and together we will succeed in really driving great solutions to help Canadian businesses flourish.”
Wawanesa: your trusted partner
It's evident that there are substantial opportunities for brokers in today’s commercial space. At Wawanesa, we are dedicated to empowering brokers to capitalize on these opportunities. Our unwavering support and flexible insurance solutions for commercial enterprises—big and small—provide you with the tools you need to succeed. Consider us part of your team. Together we’ll tackle challenges and maximize opportunities, ensuring your clients’ long-term success in the ever-evolving landscape of insurance.