Canadian Underwriter

Category: Industry

Are broker referral programs becoming more important?

Referral programs are always a key driver of broker business, but they’re viewed more favourably this year, say respondents to Canadian Underwriter’s 2026 National Broker Survey.

For 2026, 56% of respondents identify referral programs as a primary sales and marketing activity. That’s up from 50% last year, 54% in 2024, 52% in 2023 and 45% in 2022.

“My most effective tool has been client referrals,” says a verbatim reply by a newer broker at a smaller firm. “By providing clear advice, fast service and ongoing support, clients feel confident recommending me to others. This has been effective because referrals come with built-in trust, and it has led to steady growth in my client base without heavy marketing costs.”

Says another respondent: “Customer referrals – word of mouth brings in the best kind of customers.” Several other verbatim respondents note good service is the best generator of quality referrals.

Men responding to the 2026 survey (59%) are a bit more sold on the value of the referrals than women (52%). And those at mid-career (61%) with between 16 and 30 years on the job are most likely to favour referrals, as are those at small firms (50%), compared with their peers.

Brokers are less convinced about the value of traditional advertising, with 34% of 2026 survey respondents saying the tactic works for their firms, compared to 35% last year. Women (42%) are more likely to favour advertising than men (25%) and support for the tactic hovers within the 30% band for all firm sizes and age groups.

“We find public engagement by sponsoring community events gives us more visibility than traditional advertising,” says a woman respondent who works at a large firm with more than 100 employees and who is newer to the business.

Related: Brokers see rapid digital change as a major challenge for the channel

Another respondent who’s also newer to the brokerage and works at a mid-sized firm, stresses the value of step-by-step relationship building. “Traditional correspondence via phone and email [and] being accessible and quick to respond with competency and proving relatable to the client are the best tools,” he tells the survey.

“AI and software are an imitation and have their use, but are not the solution to maintain the broker-client relationship and will ultimately lead to high client turnover [and] shorter customer lifespan and subsequently higher premiums.”

Webinars, whitepapers, blogs and other customer education tools come in third at 32% in 2026, up from 29% last year. A broker working at a large firm who’s newer to the business says customer education tools support retention, reduce “complaints or surprises at claim time,” and drive better coverage decisions and trust.

“Educating our customers reinforces us as the ‘trusted advisor’ and directly impacts long-term business health,” he tells the survey.

Rounding out the Top 4, 28% of respondents say public relations and media outreach are important marketing tactics. That’s down from 32% in both 2025 and 2024, and 34% in 2023.

And, apparently, some firms are so successful that they don’t need to market.

“Our brokerage owner does not want to grow our business,” says a mid-career broker at a smaller firm. “He feels we can barely keep up with the clients we have, so does not invest in attracting new clients.”

Canadian Underwriter’s 2026 National Broker Survey heard from 169 brokers, with 32 identifying as brokerage owners or principals. The survey was conducted in February 2026, with support from Sovereign Insurance.

May 7, 2026
Which province tops personal auto, property premium hikes?

Average premiums for both personal auto and personal property lines in Canada increased year-over-year in the first quarter of 2026, with Alberta seeing the highest jumps, according to Applied Systems’ latest rating index.

In personal auto, average premiums in Alberta increased 21.3% year-over-year. Personal property in the province witnessed a 16.2% increase from 2025 Q1 to 2026 Q1, says the index released Tuesday.

The results come as Alberta prepares for its Care First auto insurance reforms on Jan. 1, 2027. The reforms, which will include unlimited access to certain types of accident benefits, are expected to create savings for consumers by reducing legal costs in the system.

From a personal property perspective, Alberta continues to be largely affected by Cat losses.

“With severe weather and rising claims costs continuing to shape the personal lines market, the Q1 2026 results highlight a growing divergence,” says Steve Whitelaw, senior vice president and general manager at Applied Systems Canada, in a press release. “Alberta continues to lead rate increases across both auto and property, while moderation is beginning to emerge across both lines in provinces like Quebec.”

The wider picture

For the country as a whole, the average personal auto premium rate change was up 11.1% versus the second quarter of 2025. Across provinces, Alberta saw the highest jump at 21.3%, followed by Ontario at 11.8%, the Atlantic provinces at 9.6% and Quebec at 4%.

In personal property, average premiums increased 8.6% year-over-year. Alberta topped the list at 16.2%, followed by Saskatchewan and Manitoba (11.2%), the Atlantic provinces (10.8%), Ontario (6.2%), Quebec (4%) and British Columbia (1.6%).

Quarter over quarter, personal property premiums also increased in all provinces except B.C. and Quebec. The average rate across Canada was up 2.4% in 2026 Q1 from 2025 Q4. Alberta, Saskatchewan and Manitoba, Ontario, and the Atlantic provinces saw quarterly increases of 5.4%, 2.9%, 2.8% and 2.7%. Meanwhile, B.C. decreased 0.6%, while Quebec decreased 3.2%.

The good news is that the average personal auto premium rate generally decreased quarter-over-quarter, although only slightly. Across Canada, the average quarterly decrease was 0.8%. The highest drop was Quebec at 6.5%, followed by the Atlantic provinces (1.8%) and Ontario (0.2%).

Alberta was the outlier, with a quarterly increase of 7.4%.

Applied’s quarterly rating index represents more than 80% of the brokerage market in Canada and 675 insurer rating plans written by brokers, the tech vendor says in the report. Applied says data analyzed includes more than 30 million quotes per quarter, using the average of the three best final premiums of each risk quoted.

May 6, 2026
How brokers are earning their ‘trusted advisor’ stripes

“Be the customer.”

That’s not a mantra from a class in method acting. It’s a verbatim response from a broker answering Canadian Underwriter’s 2026 National Broker Survey that asked brokers how they reach trusted advisor status with clients.

While statistical responses to our 2026 survey questions were consistent with prior years (79% say ‘proactively telling clients about relevant new products’ is a top technique for gaining client trust in 2026 – against 77% last year, and 78% in 2024), the verbatim answer fields let brokers give insights on they create consistent service experiences.

This year’s verbatim responses stress brokers need to enhance their proactivity with solid product knowledge, and the ability and willingness to obtain niche answers to client questions.

“Don’t BS your way through a conversation,” says a female respondent at a medium-sized firm with between 20 and 99 employees. “Know your stuff and if you don’t know it, learn it.”

And, if you don’t know the answer, be honest with the client, tell them you’ll get back after some research, and make sure you have contacts that help provide answers when clients need them, say several respondents. “Even if you don’t know the answers the client is seeking, putting in the effort to get those answers…is a good way to develop a trusted advisor status with your clients,” writes one respondent.

Another way to do that, adds a broker with 30-plus years in the business at a firm with 100-plus employees, is to “discuss risks and solutions to problems with respected underwriters and teammates,” and then take those solutions back to the client.

Related: Brokers see rapid digital change as a major challenge for the channel

Elsewhere on the numbers, 79% of 2026 survey respondents say ‘proactively informing clients of emerging risks and exposures’ is key to gaining trusted advisor status. That percentage has ranged between 76% and 79% over the past five survey years.

Again, verbatim responses flesh out how brokers are doing that. In written responses, brokers stress the need to keep current on niche products, and when necessary, “introduce true specialists and not try to do it all on your own,” as one large-firm broker puts it.

It’s also important to take discussions beyond product, says another mid-career broker at a large firm. “[Have] more conversation on their operations, successes [and] failures to know where they are trending and identify opportunities based on this,” he tells the survey.

And be honest and forthright about the solutions for a client’s particular situation, says a broker with 16 or fewer years in the business who works at a large firm. “It is most important to advise them against misrepresenting when you realize they are trying to save money by altering facts [or] situations,” she tells the survey. “Most clients appreciate candid advice even though it may not be what they want to hear [it].”

Related: Fewer brokers say they plan to leave their jobs

Two more methods popular with respondents are ‘developing specialty market expertise,’ which gets a thumbs up from 70% this year, against 68% last year, and ‘developing deep knowledge of a small selection of products,’ which sees 67% support this year and 68% last year.

“Follow the industry that you insure, and the insurance industry, so you know about emerging trends and…know about threats to the industry so you can offer advice to clients,” says a mid-career woman respondent at a small firm with 20 or fewer employees.

Another respondent adds, “Focus on an area of insurance and learn all you can about it. Learn all the carriers and their differences. Most importantly, know the people at the carriers that can help you.”

Several respondents emphasize brokers must be able to explain coverages in plain language, even for sophisticated commercial clients. “Be clear to a client at the outset about what a product is designed to deal with,” says a respondent. “And assist in every part of the process as, left to its own devices, the insurer will not be enough.”

Further, managing client expectations helps improve specialty relationships, says a respondent at mid-sized firm.

“Keep up to date with carrier changes to appetite and capacity,” she tells the survey. “Make sure to always advise clients of delays in processing and/or payment schedules in a proactive manner to remove confusion or anger from the clients if there are delays.”

Canadian Underwriter’s 2026 National Broker Survey heard from 169 brokers, with 32 identifying as brokerage owners or principals. The survey was conducted in February 2026, with support from Sovereign Insurance.

May 6, 2026
How Canada’s commercial liability market is shifting

Canada’s commercial liability market has shifted decisively in favour of buyers in 2026, according to Aon’s Spring 2026 Canadian Insurance Market Update.

“After several years of constrained capacity and firm pricing, insurers are now competing actively for quality accounts, particularly in primary casualty,” the report says. “New entrants and established markets are broadening appetite, stepping up line sizes, and sharpening terms.”

Clients with strong risk profiles are seeing more choice and competitive pricing, Aon says. These clients are also seeing opportunities to enhance wording, expand coverage, and optimize program structure to align with current operations and contractual risk transfer.

The shifting commercial liability market is particularly visible in excess casualty, Aon says.

“Competition for participation on towers that were previously difficult to build is driving meaningful rate reductions and, in many cases, broader coverage for many industries,” the report says. “Capacity is generally accessible, but insurers remain mindful of aggregation and jurisdictional risk, often preferring smaller layers than were typical before the hard market.”

Accounts with heavy U.S. exposure, challenging loss experience or higher-hazard profiles are seeing more measured improvement, Aon says, highlighting the importance of targeted risk improvement, credible data, and clear risk narratives.

For many buyers, this landscape supports a fresh look at limit strategy and structure, including reassessing adequacy in light of social inflation and verdict severity, rebuilding or smoothing towers, and calibrating retentions to balance volatility with balance sheet strength. In many cases, a portion of savings can be redeployed into additional limits, better layering, or expanded protection.

That said, several structural challenges persist, despite broader softening.

U.S. jurisdictional risk remains a central concern, with social inflation (such as nuclear verdicts, or those exceeding $10 million) and litigation funding “sustaining elevated severity expectations,” Aon says. In addition, higher hazard classes, complex product manufacturers, and large fleet or transportation risks continue to attract close underwriting scrutiny and more cautious capacity deployment.

Coverage terms are generally stable and even “improving at the margins” in some cases, Aon reports.

Exclusions for per-and-fluoroalkyl substances (PFAS, also known as ‘forever chemicals’) and other emerging contaminants, wildfire, and specific geopolitical exposures remain commonplace, the brokerage says. But underwriters in 2026 are more open to tailoring language for well-controlled risks. And clients that can show strong governance, mature safety culture, and disciplined loss control are best positioned to negotiate refinements and, where appropriate, limited carve-backs.

Underwriting discipline has evolved rather than disappeared, Aon says. “Carriers are still selective, but the stance is more solution oriented, with a greater willingness to differentiate between risks and to adjust pricing, structure, and wording when presented with comprehensive, data rich submissions, clear risk narratives, and credible improvement plans.”

Liability underwriters continue to track a widening set of emerging exposures, including ongoing social inflation, changing litigation trends, environmental, social and governance related scrutiny, cyber and technology driven risks, and environmental liabilities.

2026 is a constructive time for organizations to reassess the design and performance of their casualty programs, Aon says. Priorities include improving exposure data (such as fleet, driver, and contractual information), strengthening safety and claims management practices, reviewing limit structures in light of verdict trends, and fine-tuning retentions and attachment points to reflect true volatility appetite.

Buyers that take a more strategic, data-driven approach in this phase of the cycle will be better positioned to navigate future shifts in capacity, pricing, and liability risk.

As one measure of underwriting profitability, the Canadian commercial liability market ended 2025 with a Net Insurance Service Ratio of 81%, Aon’s report says.

May 5, 2026
Recovery | Injury claims will reveal limitations of Ontario auto reforms

Ontario residents are bracing for the most significant regulatory changes to auto insurance change in years.

On July 1, the province’s Statutory Accident Benefits Schedule (SABS) will shift from a comprehensive, uniform benefits package to an à-la-carte model. When that happens, nine of the 12 benefits included today will become optional.

While designed to empower consumer choice, the new model will also create a potential protection gap where coverage is not actively selected.

As claims adjusters, we’ve seen thousands of auto claims, enabling us to anticipate where these gaps are likely to be felt most acutely. And brokers need to be aware of some key considerations as they talk with clients about the upcoming changes.

First, will brokers be able to ensure policyholders understand the impact of à-la-carte decisions?

Under the new SABS regulations, only medical, rehabilitation and attendant care will be mandated benefits. All others must be actively selected by clients. Ontario drivers unaware of the changes – or who select lower levels of coverage – may face an increased risk of underinsurance depending on their circumstances.

Injuries will reveal limitations

For example, consider a hypothetical Ontario driver who sustains multiple physical and psychological injuries in an accident.

If this driver has not selected any optional benefits, they’ll have a combined limit of $65,000 for the mandated benefits of attendant care, medical and rehabilitation. At $3,000 a month for attendant care, and treatment expenses, the driver could exhaust their limit in about 12 to 18 months. That’s significantly less than the five-year maximum eligibility period for reasonable and necessary accident-related treatment.

But, if the insured has selected optional benefits, the coverage could include up to $1 million in combined attendant care, medical, and rehabilitation benefits. Following an accident, they can expect to receive up to $6,000 per month for attendant care, along with access to a case manager to coordinate treatment.

In this scenario, benefits like income replacement, housekeeping and home maintenance, loss of education expenses, and damage to items like clothing, glasses, or hearing aids – all out-of-pocket expenses – will be covered up to selected limits. Reasonable and necessary visitation expenses incurred by a close relative during recovery will also be covered for up to 104 weeks.

Related: Why Ontario auto reform may drive more lawsuits

Of the newly optional benefits, the income replacement benefit (IRB) may be one that policyholders forgo – making it one to review carefully with clients.

As insureds make coverage decisions, they must think first about their financial needs. Policyholders should consider how long their existing savings might cover regular expenses like rent, the mortgage, food, and utilities if they were unable to work after an accident.

In cases involving significant injuries, we’ve seen the standard two-year coverage period is not always sufficient. Some policyholders may decide, based on their financial circumstances, that additional optional IRB coverage is less critical. But others may view higher limits as highly important.

After SABS takes effect, carriers and loss adjusters will most likely see an increase in claimants looking to clarify coverage details. These questions will likely go to brokers first, making it important that brokers are educated on the new changes before the claim reaches the adjuster.

Communicating these changes and their potential impacts on clients is essential.

What carriers need to know

For carriers with commercial products, the new à-la-carte SABS regulations may create additional complexity.

If an employee gets into an accident in a corporate-owned vehicle, there may be challenges in determining which insurance policy will kick in, since the company’s auto policy, workers’ comp, and maybe even other coverages may all be involved. The potential interaction of multiple coverage regimes will require insurers to carefully consider underwriting approaches for commercial policies.

The good news for carriers is that some industry participants anticipate new SABS framework could contribute to changes in claims frequency or overall payouts, although outcomes will depend on take-up rates and claims experience. In the end, this will likely enhance cost savings for carriers but could then shift the costs onto the at-fault party’s insurer, or OHIP.

Education will be key

Transitioning to the new SABS model will be a major shift in accident benefits for Ontarians.

Although it introduces more flexibility for consumers and potential cost savings for insurers, it also increases the risk of coverage gaps for policyholders who don’t select optional benefits. The success of this change will depend on industry-wide awareness and consideration.

Adjusters, brokers, and carriers alike must prioritize education and clarity to ensure policyholders fully understand their choices, and are properly protected in the event of an accident.

Michael McNeill is accident benefits supervisor and Brian Hambly is vice president of loss adjusting at Crawford & Company.

May 5, 2026
What clients would rather do than review home insurance policies

How can you persuade your clients to read their policies thoroughly?

It’s not easy, says a new survey conducted by Léger for Allstate Canada, which finds 81% of insurance clients would rather fill out their tax returns than read their insurance policies front-to-back.

Another 53% of respondents say they’d rather assemble a furniture kit using instructions that aren’t clear, and 47% say they’d rather have a dental filling replaced. The survey was fielded between March 20 and 22, 2026, with 1,525 responses.

“This says to me there are aspects of insurance that competes for attention within the lives of Canadians, and it can often lose,” says George Ljubicic, agency manager at Allstate Canada, in a press release.

“Most people want to feel confident about their coverage, but insurance documents aren’t always written the way people talk or think about their homes. That’s why meeting customers where they are, with simple explanations and real human support, really matters.”

Also in the news: How segmentation is shaping commercial property softening

In terms of clients understanding what they read, the report finds 64% of respondents tell the survey they do understand some aspects of their policies. But it also finds just 42% of respondents are able to identify at least two accurate coverage statements – out of five offered in the survey – without selecting one or more incorrect options.

The company notes the gap between those saying they understand at least some parts of their policies, while still selecting incorrect coverage statements, suggests the industry could help clients by providing more reader-friendly documents and broker and agent support to ensure questions get answered.

Another, separate, survey commissioned by Allstate last year finds Canadians are likely (49%) to contact their brokers or agents with questions. Others opt to call insurers’ customer service lines (44%) or go to their websites (35%). Just 30% say they get their answers by directly reading their policies.

That second survey was fielded July 7 to 14, 2025 and received 1,515 responses from residents of Alberta, Ontario, New Brunswick, or Nova Scotia – 156 of whom were Allstate customers.

Also in the news: Brokers see rapid digital change as a major challenge for the channel

On the bright side, a majority of respondents (82%) indicate they review their policies during the year, usually at renewal, at time of purchase, or when the coverage takes effect. But for those saying they don’t read their policies, 67% indicate they’d prefer to speak with someone – and 22% say they simply find their policy documents too hard to understand.

“Making insurance simpler doesn’t mean oversimplifying – it means being clear and more human,” Ljubicic adds. “Insurance documents that are easier to understand, paired with real guidance, can help Canadians feel confident that their coverage actually reflects their needs.”

May 4, 2026
Audit finds flood hazard mapping behind schedule, doesn’t account for climate change

OTTAWA – Federal efforts to map parts of the country facing the highest risk of flooding are not on track to finish by the 2028 target date and don’t account for the effects of climate change, Canada’s environment watchdog said in a new report.

It was one of five reports issued by environment commissioner Jerry DeMarco and auditor general Karen Hogan on Monday — which also included probes of Canada’s avian flu response, First Nations funding, the climate resilience of federal assets, and how well the government accommodates accessibility needs in the public service.

The flood mapping report found the flood risk awareness portal under development at the Public Safety department does not consider how climate change is affecting flood patterns.

“Flood hazard maps must integrate climate change projections; otherwise, the data are not accurate enough to guide long-term decisions, such as where to build homes or develop infrastructure,” the report said.

The risk ratings were generated using present-day assumptions and the audit found that because the government used a private sector contractor to create a proprietary system, it was not able to adjust the model.

The audit also looked at efforts to map high-risk flood areas at the Natural Resources department.

The department identified 200 areas at high risk of flooding in 2022 but the audit found it did not monitor whether the mapping projects actually covered those priority areas.

As a result, the audit said, less than half of the 131 mapping projects cover the high-risk areas identified after that 2022 analysis. Only 11 of those maps had been posted to the Canada flood map inventory.

Flood relief efforts cost the federal government an average of $230 million a year between 2016 and 2025. That average cost is rising as a result of climate change and population growth.

The national risk profile found about 80 per cent of highly populated areas of the country are at least partially in flood hazard zones.

DeMarco is recommending the government create user-friendly, interactive flood maps to ensure people can prepare.

The audit notes federal investments in homes and infrastructure, “including those announced in Budget 2025, could be planned and designed with climate readiness in mind by using reliable and actionable flood hazard information.”

The audit also says the government needs to work with provinces and territories to monitor high-risk areas.

The government says it has accepted all recommendations.

May 4, 2026
How segmentation is shaping commercial property softening
Canadian commercial lines continue to soften, but that softening is not uniform. In commercial property, market segmentation is increasingly pronounced in 2026, says Aon’s Spring 2026 Canadian Insurance Market Update.

“Accounts with robust risk management, preferred occupancies, accurate valuations, and limited catastrophe exposure are seeing meaningful rate relief, enhanced wordings, and improved sublimits,” the report says.

“By contrast, properties with adverse loss histories, wood frame or highly combustible construction, complex industrial processes, or significant exposure to key natural perils continue to face tighter terms and elevated scrutiny relative to other segments in the market.”

Underwriters remain focused on severe convective storm, flood, wildfire, earthquake and windstorm, particularly in known Canadian hotspots, the report says. In those Cat-exposed areas, carriers are recalibrating sublimits and increasing deductibles. In some cases, insurers are also applying higher waiting periods or more restrictive terms, even while core all-risks pricing eases.

For clients, Aon says, this segmentation reinforces the value of reinvesting in physical risk improvements, data quality, and valuations now, so that their risk profile moves — or stays — on the preferred side of the market divide.

Aon notes underwriting discipline remains strong in 2026. But it’s expressed through selection, data quality and differentiation rather than across-the-board rate pressure. Insurers are placing heightened emphasis on accurate valuations to address years of construction cost and inflation lag, as well as high quality COPE (Construction, Occupancy, Protection, Exposure) data.

“Demonstrable mitigation such as wildfire defensible space, enhanced flood protections, hail and windstorm measures, robust maintenance programs and resilient building materials, has become a critical differentiator,” the report says.

The softer commercial market gives clients an opportunity to fund these upgrades, Aon says, by deliberately investing a portion of premium savings into:

Updated valuations and improved total insured value and COPE data

Targeted risk engineering and loss prevention projects

Resilience measures, such as flood defences, wildfire hardening, and roof and envelope upgrades

Stronger emergency response and business continuity planning.

Organizations can both unlock better terms today and reduce volatility at the next turn of the cycle. Escalating Cat frequency and severity, persistent inflation in repair and reconstruction costs, and geopolitical and supply chain volatility continue to create uncertainty around long-term loss costs and capital availability, Aon says.

“Even in a softer rating environment, carriers and brokers are leaning more heavily on analytics, catastrophe modelling, and scenario testing to design property programs that are sustainable across cycles.”

Overall, the Canadian commercial property insurance sector remains resilient in 2026, with strong underwriting performance and improved investment income supporting increased capacity and competitive momentum, despite elevated catastrophe losses.

As the year progresses, organizations that deliberately reinvest in their property programs, rather than simply banking short-term savings, will be best positioned, Aon’s report says. “Proactive risk management, improved data, and thoughtful program redesign enable buyers to capture current market benefits while building a more resilient, future-ready insurance and risk financing strategy.”
May 1, 2026
Why AI won’t replace human claims adjusters

Claims surges caused by natural catastrophes (NatCats) or other major events create bottlenecks for insurance claims adjusters. And that’s where manual work processes can collapse.

That has some firms developing artificial intelligence (AI) agents and other options to take up slack by triaging clients – freeing human adjusters to help people who are in genuine distress, say two authors of a recent Deloitte report on property and casualty (P&C) insurance claims trends.

“Automation scales. So, you’re able to have those conversations about your claim, and [it] removes a lot of that administration that bogs [processes] down when there’s a surge event,” says Colin Asselstine, a director and insurance claims leader at Deloitte.

A lot of claims-related AI development centres on creating engines to do data validation, policy and coverage checks, triage, routing, document ingestion, classification, summation, notification and status updates.

“Those are all really good candidates for automation,” Asselstine tells Canadian Underwriter. “It allows you to protect the customer experience, make sure your operations [are] resilient. You give back to the customer that really needs your support.”

Related: AI is shrinking the pool for junior hires. Is apprenticeship drying up, too?

But automation also must react to the claim type.

Chris Duvinage, a partner and national P&C insurance segment leader at Deloitte, notes that while NatCat damage is often property-specific, that’s not always the case.

“The second you have some element of bodily injury, [the person wants to] talk to somebody. So just because you can technically automate that process [using] AI…it doesn’t mean it’s [always advisable],” he tells CU.

Adoption of AI will, though, create different work and training needs for adjusters’ workforces.

“You don’t want to move away from the existing contact centers,” says Duvinage. “In fact, you may want to train your people to be even more empathetic…around some of the people skills and take the…lower-value work like data entry, and copy and pasting between systems away from them so they can truly focus on [clients] in the moment, rather than trying to solve back-end systems and processes.”

Adds Asselstine, “You want them to look at complex coverage, complex liabilities. Look at escalations, negotiations. That’s where humans are effective, and that’s where [AI] is pushing towards using our skill sets as humans.”

Which is why adjusters, particularly older workers, shouldn’t be afraid of losing their jobs.

“From an age perspective…it’s those folks with the experience that can be more empathetic; that have a solution on the phone and are…better-trained to have some of the customer-facing conversations,” says Duvinage.

Related: Why claims pros see an influx of fire claims during deep freezes

The best adjusters help customers understand their post-NatCat-event status and can explain complex insurance processes so that clients understand their next steps, says Asselstine.

“Depending on the claim, there’s a lot of that empathy and the trust and feeling…for a customer when they’re under stress – and being able to relate to tell [them that] everything [will] be okay. That’s true today. That will be true tomorrow,” he tells CU.

Adjusting firms, insurance companies, and some brokers must also prepare for how AI augmentation will help both veterans and new hires improve work processes. Those who get comfortable working alongside AI tools will benefit from their ability to do tasks like summarizing documents and even providing suggestions for next steps.

“It’ll listen to a conversation. It’ll take a summary of that. It’ll pull up the policy. It’ll pull up your internal standard operating procedures (SOP), and say, ‘Based off what I heard, I think these are [the] relevant areas of [the] policy, and this is the relevant area of our SOP,’” Asselstine says.

“It’s [giving] suggestions for humans to then validate. When the guardrails are up [around AI] and insurers get comfortable that 99.99% of time the model is giving the right answer, you can then say, ‘For these simple claims I’m good with the model making the decision.’”

May 1, 2026
AI is shrinking the pool for junior hires. Is apprenticeship drying up, too?

Hiring for junior positions in the property and casualty (P&C) insurance industry is drying up, as artificial intelligence fundamentally shifts away from the traditional apprenticeship recruitment model, panellists said last Thursday at the Insurance Institute of Canada’s annual CIP Symposium.

Danish Yusuf, CEO and founder of Zensurance, notes job opportunities for junior roles in brokerages appear to be shrinking.

“The roles that are changing most are…[those involving] knowledge work,” Yusuf says, when asked about the impact of AI in the workplace. “In our case, that means the onboarding roles for brand new brokers, brand new assistant underwriters — that’s the area where we’ve really dramatically reduced how much hiring we’re doing.

Yusuf noted junior engineer roles at a brokerage were the first to feel the impact two years ago. For example, a junior engineer might help a senior engineer improve the speed and accuracy of policy generation, quoting, and risk assessment (for example, collecting risk data to support a client’s insurance submission).

“On the engineering side, as of two years ago, we stopped hiring Junior folks,” Yusuff said. “We couldn’t justify giving them a good experience. The engineering side happened two years ago. The broker and underwriter side is happening now. So that’s the space that’s being impacted the most.”

Impact on Apprenticeship

Vlad Koltchine, chief revenue officer and insurance operations leader at Sinistar, moderated the panel discussion, ‘People First: Building Careers in the Age of AI.’ He wondered how the shrinking number of junior roles affects the industry’s traditional apprenticeship recruitment model.

“When you were speaking about some of the generally more difficult roles to fill with more skill and complexity,” Koltchine said, “to me, those roles tend to be the ones that had a more or less sort of logical progression in the industry, starting from the more junior through to the apprenticeship, and then the trust-building and then the experience building.

“And it’s question to the entire panel: Do you believe we’re at risk of disrupting this apprenticeship model that we’ve been so accustomed to in those more technical, complex roles?”

Yousef answered, “I think it’s going to change, and it’s going to change meaningfully, and it could be changing for the better.

“I’ll give you the analogy for us. We’ve got underwriters. We still want them to review files and do what they do. But in parallel, and they know this, the AI system is running and double-checking everything that they’re doing.

“And we ran through all of the past referrals that they’ve done, and the answers they gave, and what the system would have given. And it’s now helping the underwriters be much more efficient, because it’s running in parallel and making them better.”

Impact on Gen Z

P&C industry careers most impacted by AI would be those of Gen Z recruits, said Randy Dhillon, senior vice president and chief people officer at Wawanesa. Gen Z, born between 1997 and 2012, is the age cohort following the Millennials.

“Gen Z would come into organizations to develop their skills, develop their critical thinking, develop their emotional intelligence, and some of the pieces that we use to breed the next generation of leaders,” Dhillon said. “And so, I think this puts significant pressure on your talent pipelines, and we have to intentionally redesign how you’re going to accomplish the same outcomes in a very different architecture moving forward.”

Gerald Legrove, president of DGA Careers, which specializes in recruiting for the insurance industry, says the shift away from recruiting for junior roles to more complex, specialized or technical roles means the recruiting process will lengthen.

“In D&O, complex construction risks, aviation — any role requiring greater expertise, greater complexity — you’re just dealing with a smaller pool of candidates,” he said.

“Beyond that, those companies that are employing those great people right now don’t want to let them go. And so, they’re going further, a little more, to hang on to people.

“For those of you who are not working with us or recruiting on your own, what I would highly recommend is, if you’re looking to fill a role that is critical to your organization, a role with a real knowledge or specialty work, take your time, get to know the individual well. Know what motivates them.”

But while the recruitment process may be getting longer, the AI world has the onboarding process shrinking.

A two-year-long training period to develop technical and soft skills has now been radically compressed, says Yusuf.

“What that means for us as the organization is we can’t rely on those two years to train people,” he says. “We need to hire them, have a really in-depth training program — and not over two years, but in two months. They have to be what would have been two years of training.

“It’s big investment from our side to get the people on board for sure.”

April 30, 2026