Canadian Underwriter

Category: Practice Tools

Will AI disrupt our industry?

Sarah Suschkov,
Chief Underwriting Officer (CUO)

Three years after its launch, ChatGPT is a household name. Artificial Intelligence (AI) is as common a topic at the dinner table as it is in the boardroom, and we are all figuring out how to use this revolutionary technology.

If you’re “AI-curious” like me, you’re probably experimenting with ChatGPT or its rivals to see firsthand where AI excels and where it falls short. Large language models like ChatGPT aren’t designed for accuracy; they are built for creation. Naturally, they excel at helping to reword emails or suggest travel itineraries but often get it wrong when asked for precision or nuance (warning: they confidently provide incorrect information!).

At Trinity, we talk about using them to brainstorm by asking questions on unusual risks or to improve marketing documents. Many companies are looking at AI-driven underwriting solutions for workflow automation and increased efficiency. But this raises the questions: what is AI’s true role in underwriting, and what implications does that have for the industry as a whole?

When the internet emerged, with search engines and Wikipedia, it democratized access to information. Anyone can find answers (almost) instantly, so differentiation no longer comes from who knows more, but from who does more with that information. AI is similar in that it changes differentiators for companies and individuals alike, and levels the playing field again.

Now, anyone can write a university-level essay or ask what niches generate the best ROI in the next 12 months. Anyone can use it to collaborate on a marketing strategy or email wording with just a few prompts. It is how we use it that differentiates us in the end.

Let’s pretend for a minute that insurers automate a substantial part of the underwriting pathway, and that the AI models are reasonably accurate. Every model has access to similar information and therefore produces similar underwriting results, so products commoditize quickly. Speed and price become table stakes. At first, loss ratios improve but then level off as margins shrink due to competition in the market. SME client behaviour shifts to direct buying. Brokers find it harder to add value. AI cannot build goodwill, so insurance could become another click-to-buy commodity, extremely transactional.

Before we start building bunkers, consider what makes this industry unique. Insurance is, and always has been, a relationship business, and AI can’t do that. AI can’t read the room, can’t recognize when a client’s hesitation hides a deeper concern, or sense what tones signal opportunity.

AI enhances underwriting and pushes us toward smarter decision-making. But it doesn’t replace judgment, intuition, or the uniquely human ability to connect.

So, will AI replace us all? No. But if used properly, it changes how we underwrite and redefines what makes us valuable ultimately bringing differentiation back to what this industry is all about – building trust in each other.

November 10, 2025
Is your brokerage prepared with specialized knowledge for the competitive edge?

In an era defined by generative AI, cyber liability and climate-related exposures, brokers know that markets driven by uncertainty call for confident advisors. Brokers who invest in p&c education are better equipped to understand these challenges which positions them to educate clients and win high-value accounts.

Educational offerings like the CIP designation provide courses tailored to exposures such as Cyber Risk, Business Interruption and Specialty Lines amongst others, which not only help to unlock new opportunities to grow your book of business but enhance your expertise and reputation through specialized knowledge.

Expertise builds client loyalty. Clients are inclined to stay with brokers who ensure they are protected and understood, so building and maintaining the trust of clients and insurers is incredibly important. This requires brokers who can communicate the nuances of coverage and risk scenarios with clarity and confidence. Growing a career as an insurance broker and ultimately growing a brokerage requires the discipline and curiosity exhibited in continuous learning.

“Pursuit of insurance education like the CIP designation builds depth of knowledge and trust, which can streamline sales cycles and strengthen customer retention,” says Alex Rei, ACIP, Business Development Advisor, at Economical Insurance.

Brokers recognize that insurer relationships are strengthened with technical knowledge, a comprehensive understanding of underwriting principles, and accurately presented risks. This leads to better placement outcomes, faster turnaround, and increased revenues.

“Today’s clients are more informed,” says Rei. They research policies, compare quotes, and ask tough questions to seek better clarity on their insurance solutions.”

He believes brokers who have invested in their education can correctly and confidently explain coverages and risk scenarios to earn trust — and business.

When looking at the continuous evolution of the industry, The Insurance Institute of Canada believes that while technology, marketing tactics and platforms change constantly, deep insurance knowledge stays relevant.

“Brokerages that invest in insurance education like the CIP designation, signal a culture of professionalism and growth. The CIP helps to future-proof careers and businesses by attracting ambitious brokers and retaining high performers who thrive in roles where they can excel. Offering the CIP designation to employees is a talent magnet and a retention tool,” says Peter Hohman, MBA, FCIP, ICD.D, President, and CEO of The Insurance Institute of Canada. Advice and choice are the brokers’ strength in this “people business” that is centred around strong relationships. Since both insurers and customers are buying into the broker’s reputation as part of the total package, the brokers who successfully navigate with the best advice and options are the industry’s competitive edge.

November 3, 2025
How can brokers help combat auto insurance fraud?
Andrew Hobson, Manager, Special Investigations Unit, Echelon Insurance

Auto insurance fraud is a persistent and costly issue that affects everyone, including insurers, policyholders, and the broader industry. Fraudulent claims raise premiums across the board, strain insurer and law enforcement resources, and can erode customer confidence. In Canada, fraud is estimated to cost policyholders $1 billion annually, according to the Insurance Bureau of Canada. While the number is staggering, they also highlight an opportunity for brokers to provide crucial support in combatting fraud.

Brokers are often the first point of contact for customers, which uniquely positions them to detect suspicious activity early, educate policyholders, and help prevent fraud before it escalates.

What is insurance fraud?

Insurance fraud involves any deliberate deception for financial or personal gain. It can include lying on an application, exaggerating damages, or even staging entire collisions. Fraud may be committed by individuals or as part of large-scale, organized crime rings.

Types of insurance fraud

Fraud generally falls into two categories:

Opportunistic fraud: Often spontaneous, such as claiming pre-existing vehicle damage after a real accident or inflating repair costs.

Premeditated fraud: Planned and may involve multiple parties staging collisions or creating fake documentation.

Regardless of type, all fraud increases costs and undermines public trust.

Common auto insurance fraud tactics

Today’s fraudsters use a range of tactics ranging in complexity, including, but not limited to:

Staged collisions: carefully choreographed crashes involving complicit parties.

Rate evasion: Misrepresenting details (e.g., where a car is kept) when obtaining insurance quotes to secure lower premiums.

Identity theft: Using stolen names or driver’s licenses to initiate or cash in on policies.

Vehicle theft and VIN manipulation

Vehicle-related fraud continues to grow in complexity, with organized crime groups using increasingly sophisticated tactics to profit from stolen vehicles. One common method is VIN cloning, where a stolen vehicle is assigned the VIN of a similar, legally registered car to mask its identity. Another is re-VINing, which involves swapping the VIN with one from a salvaged or junked vehicle. In some cases, fraudsters go a step further by creating entirely fictitious VINs that don’t correspond to any real vehicle. These vehicles may be sold to unsuspecting buyers, used to file false insurance claims, or exported overseas. Brokers who understand these tactics are better positioned to detect red flags early and help protect their customers.

What actions can brokers take to mitigate auto insurance fraud?

Brokers play a key role in the fight against auto insurance fraud, acting as trusted advisors as well as risk spotters. Brokers are often the first to hear about suspicious losses or unusual documentation. By asking the right questions, verifying information, and reporting inconsistencies early, brokers can prevent fraudulent claims from progressing. Equally important is educating customers about what constitutes fraud and its consequences, not only for insurers but for honest drivers who bear the financial burden.

In addition to taking a diligent approach when quoting and supporting customers during the claim submission process, there are several proactive strategies brokers can leverage to prevent auto insurance fraud, including, but not limited to:

Request complete documentation: Photos, bills of sale, registration, and identification.

Verify vehicle information: Use manufacturer tools or recall databases to validate VINs.

Ask follow-up questions: If something feels off, don’t hesitate to dig deeper.

Stay informed: Be aware of new scams and trends in your region.

Collaborate: Work closely with underwriters, loss prevention teams, SIUs, and industry groups like the Équité Association.

Fraud prevention is a shared responsibility. By staying alert, asking the right questions, and leveraging available resources, brokers can play a key role in protecting both their customers and the industry as a whole.

Copyright © 2025 Echelon Insurance. All rights reserved. This article is provided by Echelon Insurance (“we”) for general information purposes to help brokers and their customers understand auto insurance fraud classifications and the important role brokers play in insurance fraud prevention. While we endeavour to be accurate and up to date, this information is provided “as is” and we cannot guarantee it is complete or that implementing the recommended loss prevention measures will have the desired results. 

® Registered trademark of Echelon Insurance.
November 3, 2025
What steps help commercial auto insurers spot and stop driver fraud?
Darrell Parsons,
CEO

Commercial auto fraud often conjures images of staged accidents or organized theft rings. But the more routine problem that’s costing insurers millions sits at the driver level — falsified abstracts, undisclosed convictions, expired endorsements, and ineligible drivers who slip through weak driver screening processes.

“These gaps can quietly erode underwriting integrity, drive up exposure, or trigger costly denied claims,” explains Darrell Parsons, CEO of ISB Global Services, a leading insurtech provider in Canada. “That’s why fraud at the driver level is one of the most overlooked, yet preventable, risks facing commercial auto insurers today.”

The problem is only growing. Claim fraud investigations surged 76% in 2024, with auto-related cases making up two-thirds.

“Fraud prevention has to start before the loss ever happens,” Parsons says. “With continuous, real-time visibility into driver data, commercial auto insurers can spot high-risk drivers early, price risks more accurately, and make proactive decisions that protect both their portfolios and their clients.”

The true cost of fraud

Fraudulent or inaccurate driver information at binding leads to mispriced risks, inflated losses, and reputational damage. And when bad data slips through, insurers are left paying inflated claims and legal fees, and carrying compliance risk.

“The problem is compounded by how driver data is still collected and monitored,” says Michael Thompson, Chief Commercial Officer at ISB. “Manual processing slows turnaround and leaves room for errors and inconsistencies. Relying on drivers to submit their own abstracts invites tampering. And if checks are done only at renewal, you’ll miss red flags that can surface midterm, like licence suspensions or new convictions.”

That leaves underwriters making decisions on flawed information, he adds. “By the time the truth comes out, it’s often in the middle of a claim, when it’s already too late. Every fraudulent record that makes it into a policy chips away at underwriting integrity.”

That’s why stronger, standardized driver vetting practices are so critical, Parsons emphasizes. “Best practices supported by real-time driver data and continuous screening give commercial auto insurers a fighting chance to keep bad data, and bad actors, out of the system, cut fraud losses, and protect both their book and their clients,” he says.

Best practices to prevent driver fraud

ISB suggests commercial auto insurers can strengthen their defences against driver-level fraud by embedding these best practices into their underwriting workflows:

Verify at the source: Always pull abstracts from ministry feeds, never from driver-submitted documents that can be tampered with.

Widen the lens: Screen official sources beyond the current jurisdiction, including where a driver has lived or worked. For example, commercial fleets with cross-border exposure — for example, nuclear verdicts — require broad checks across multiple databases both in Canada and south of the border.

Look deeper than the abstract: Pair real-time ministry-sourced abstracts with criminal background checks and even social media screening. These could reveal risks like fraud, theft, improper behaviour, or even organized crime involvement in, for example, cargo theft, that a clean abstract won’t.

Adopt a regular screening cadence: Risks like suspensions and convictions can happen any time. Continuous screening helps catch them before they turn into claims.

Automate for consistency: In commercial auto, complex underwriting rules are vulnerable to bias and human error. Automated adjudication applies the same thresholds every time, producing consistent, defensible results.

Build compliance into the process: Time-stamped, traceable records strengthen audit-readiness and claims defensibility.

Leverage scale: Advanced driver screening tools like Red Flag Alerts surface behavioural patterns across thousands of drivers in minutes, freeing up underwriters to focus on exceptions — not paperwork.

The ROI of prevention

ISB’s Red Flag Alerts platform is designed to close the gaps that allow driver fraud to slip through. The system pulls driver record abstracts directly from transportation ministries, RCMP, and police databases in Canada, and 3,600 counties across the U.S., creating a trusted, broad data source that can’t be manipulated.

The tool then continuously screens and automatically configures each record to an insurer’s compliance thresholds, delivering real-time pass/alert driver scorecards that highlight red flags on suspended licences, improper classifications, missing endorsements, and both major and minor convictions. Every check is time-stamped, traceable, and audit-ready, so insurers have a defensible record to indicate compliance rules were followed.

By harnessing automation and AI, underwriters can move beyond manual inefficiencies to consistent, fraud-resistant workflows.

“It’s not just about gaining efficiency, speed, and scale. It’s about protecting the integrity of decisions and shutting down fraud before it ever makes its way into a policy,” says Parsons.

See how Red Flag Alerts can help your team today.
October 27, 2025
How can brokers help fleet operators build stronger fleet safety programs?
Olivier Bernier,
Director, Quebec Long-Haul Trucking and Commercial Automobile,
Echelon Insurance

Fleet safety is no longer just a regulatory requirement, it’s a business imperative. As commercial drivers face increasingly complex challenges while on the road, operators are under increasing pressure to improve safety performance across their fleets. A robust safety program can help prevent collisions and protect employees, contributing to an improved overall safety score, which, in turn, can lead to lower insurance premiums and general cost savings.

For brokers, supporting fleet operators in building or strengthening their fleet safety efforts is an opportunity to provide additional value to their customers. Understanding the key elements of an effective safety program, and how tools like telematics can support it, can help brokers reinforce their position as trusted partners in risk management.

What factors contribute to an effective fleet safety program?

A comprehensive fleet safety program goes beyond having a written policy. It should be fully integrated into daily operations and include the following components:

Clear safety policies outlining expectations around speeding, distracted driving, seatbelt use, and vehicle maintenance

Thorough driver screening and onboarding, including abstract checks, defensive driving training, and structured orientations

Driver selection and progressive route planning, assigning newer or junior drivers to shorter, local routes until they are ready and fully trained to handle longer-haul or higher-risk routes

Ongoing training and coaching to reinforce safe habits and correct unsafe behaviours over time

Incident reviews to analyze collisions and near misses, identify root causes, and prevent recurrence

These programs should be reviewed, updated, and enforced consistently across an organization. Fleets that invest in proper driver development, from onboarding through coaching, reduce risk exposure and build a safer, more resilient operation.

Leveraging telematics to reinforce safety

Telematics is an important component of any modern fleet safety program. These systems capture real-time and historical data on vehicle and driver behaviour, such as speeding, harsh braking, rapid acceleration, and idling. This data helps fleet managers monitor risk, identify trends, and coach drivers more effectively.

However, the benefits of telematics go beyond coaching. Many systems offer driver scorecards, in-cab alerts, and automated safety reports that make it easier to track performance and intervene early. In the event of an incident, telematics data provides clear, time-stamped evidence that can support claims handling and investigations.

Additionally, telematics can support broader operational efficiencies. Fleets can optimize fuel consumption, reduce unnecessary idling, and plan routes more efficiently, all of which contribute to cost savings. Fewer accidents also mean fewer deductible expenses, less downtime, and lower repair and replacement costs.

For businesses already using telematics for route planning or vehicle maintenance, integrating safety metrics into their daily operations is the next logical step. For brokers, encouraging operators to see telematics as both a safety and cost management tool, not just a logistical one, can help them strengthen safety performance and unlock additional insurance value.

Some insurers offer telematics-based programs, pricing incentives, or loss control support for clients who share this data. Brokers who understand these offerings can assist their customers in making more informed decisions about their coverage.

How can brokers support fleet operators?

Brokers are uniquely positioned to support customers in strengthening their safety programs. They don’t need to be safety consultants, but they can play an important role in initiating the conversation and connecting customers to resources.

This could include, but is not limited to:

Reviewing whether a customer has an up-to-date fleet safety policy

Recommending structured onboarding and driver coaching practices

Sharing risk control materials or case studies

Encouraging the use of telematics for benefits beyond logistics

Brokers can also act as liaisons between customers and insurers’ loss prevention teams, helping customers demonstrate their commitment to safety during underwriting discussions.

Fleets that prioritize safety often see the impact across their entire operation, not just in fewer claims but in improved fuel efficiency, reduced maintenance costs, and stronger bottom-line performance. Brokers who help customers build these programs position themselves as partners in the long-term success of fleet operators.

Copyright © 2025 Echelon Insurance. All rights reserved. This guide is provided by Echelon Insurance (“we”) for general information purposes to help Brokers and their commercial customers understand how they may enhance their fleet safety program and loss prevention. While we endeavour to be accurate and up to date, this information is provided “as is” and we cannot guarantee it is complete or that implementing the recommended loss prevention measures will have the desired results.

® Registered trademark of Echelon Insurance.
October 20, 2025
How does advanced driver screening help commercial auto insurers curb cargo theft?

Michael Thompson, CCO, ISB Global Services

Organized cargo theft from commercial trucks is surging across North America. It’s an underestimated yet preventable risk now hitting insurers as hard as the commercial fleets they cover.

In Q1, 2024 alone, reported cargo theft jumped 46% year over year, with losses in stolen goods reaching nearly $214 million. Thieves increasingly target high-value loads such as copper (up 61% in the first half of 2025), electronics, and pharmaceuticals.

At the same time, Canada’s insurers are seeing commercial auto claims grow faster than the number of vehicles on the road, with commercial fleets lacking rigorous driver vetting practices especially exposed, according to the Insurance Bureau of Canada.

“The implications for commercial auto insurers are hard to ignore,” says Darrell Parsons, CEO of ISB Global Services, a leading insurtech provider in Canada. “Commercial fleets with weaker driver screening practices are more exposed to theft, liability, and reputational harm. And when insider threats are part of the equation, as they are in most theft cases, driver eligibility becomes a frontline measure of risk adherence.”

As theft risks escalate and underwriting tightens, sophisticated driver screening technology that instantly flags high-risk drivers, like ISB’s Red Flag Alerts, is giving underwriters the ability to prevent costly losses before a policy is written or renewed, adds Parsons.

Proactive prevention

“Over 80% of cargo theft cases have insider help from drivers,” says Michael Thompson, Chief Commercial Officer at ISB. “It’s one of the most underestimated risks in commercial auto — and one of the most preventable,” he adds.

Too often, insurers rely on manual processes or driver-submitted abstracts that can be forged, leaving them with data that’s incomplete, outdated, and unreliable.

“This weakens underwriting and leaves commercial fleets exposed,” Thompson notes. “When you’re making decisions on bad data, you’re taking on risks you could’ve avoided.”

To stay ahead of risk, underwriters need a complete, current, and trustworthy picture of every driver before coverage is bound.

Advanced platforms like ISB’s Red Flag Alerts automate the collection and analysis of ministry-sourced driver abstracts while layering in comprehensive background checks and instant flags that give underwriters a broader perspective and actionable insights from the start.

“It’s not just about efficiency,” Thompson says. “It’s about screening deeper and continuously, so risks are caught long before a single abstract or renewal check would.”

For example, an abstract might show if a driver has a DUI, but it won’t flag a history of fraud or theft. That’s where criminal background checks and even social media screening matter, he adds. “A driver can look perfect on paper and still pose a serious risk. When you can screen that thoroughly for under $50 through ISB’s platform, the real liability is skipping that level of due diligence,” Thompson says.

“Things can also change midterm. Suspensions and convictions can happen any time. If you screen only at renewal, you’re going to miss them,” he adds. “Continuous, automated driver screening stops bad actors from slipping through the cracks, not just at binding but throughout the policy term.”

Smarter screening at scale

ISB’s Red Flag Alerts platform is designed to process thousands of driver records in minutes, flagging non-compliant, high-risk drivers in real time. With data sourced directly from transportation ministries, RCMP and police in Canada — plus 3,600 counties across the U.S. — results are reliable, broad and tamper-proof.

The raw data is then run through an automated engine against the insurer’s compliance thresholds, immediately surfacing red flags like suspended licences, missing endorsements, improper classifications, and both major and minor convictions. The result is an automated pass/alert driver scorecard giving underwriters faster, more reliable visibility into the drivers that pose risk.

“This flips the workload,” Parsons says. “Instead of drowning in paperwork, underwriters can focus where it counts: keeping ineligible drivers off the road.”

Identity assurance is another key safeguard. “It’s not enough that the abstract looks clean,” Parsons adds. “The wrong driver can still show up to haul a high-value load. Our system also matches government-issued ID to the vetted applicant, ensuring every record ties to the right driver.”

Compliant drivers, safer roads

Stronger driver selection improves risk profiles, reduces theft claims, and ultimately supports more sustainable loss ratios. Continuous screening also builds robust compliance, safer commercial fleets, and stronger defensibility.

“But nobody can solve cargo theft alone,” Parsons notes. “It takes collaboration across insurers, brokers, commercial fleets, and partners. When underwriters make advanced driver vetting a priority, they’re not just protecting their own book, they screen bad actors out of the system before they become a claim. Removing that threat from the start ultimately helps build safer roads for everyone.”

See how Red Flag Alerts can help your team today.

October 14, 2025
Navigating the Future of Insurance: Risk Management Trends, Challenges and Opportunities

Featuring: Mike Travis, Consulting Director, Underwriting & Matt Santos, Consulting Director, Underwriting

The insurance industry stands at a pivotal crossroads. Technological disruption, evolving client expectations, and systemic global risks demand a reimagining of how we assess, manage, and transfer risk. Underwriting consulting directors Mike Travis and Matt Santos share how these changes have redefined insurance and risk management – and how carriers must evolve to create resilience and stay competitive.

What are the most transformative trends or challenges shaping the insurance industry today?

Mike Travis:

The emergence of generative artificial intelligence (AI) that can help automate routine tasks, such as claims processing and underwriting triage, is significant. It’s important, however, that underwriters use these tools for support, rather than to outsource critical thinking or decision making.

Matt Santos:

Another transformative trend is the improvement of data-driven risk intelligence. Big data is no longer just a buzzword for referencing volume. It now enables more precision — including the integration of data ecosystems to enhance risk segmentation, pricing accuracy and predictive modeling — and supports underwriting decisions. This is particularly important in casualty, where there is high complexity in exposures.

How has the role of risk management and specialized underwriting expertise evolved in response to emerging global challenges like climate change, cyber threats and geopolitical instability?

Matt Santos:

Risks today are no longer siloed; they are systemic, dynamic and often unmodeled or even unknown. Some previous examples included leaded gasoline, asbestos or chlorofluorocarbons (CFCs), which created more disruptions and problems than they solved. Today’s trends can include Microplastics and PFAS. Future risks can include bioengineering, nanotech, etc. This shift demands a move from reactive risk transfer to proactive mitigation, resilience-building and integrated risk transfer solutions.

What’s more, curiosity and continuous learning are becoming indispensable skills for underwriters. It’s important that they stay up to date with emerging trends, risks and rapid innovation and work closely with broker partners and the risk management community. Underwriters should prioritize providing viable mitigation and transfer solutions that contribute to a holistic approach to understanding and managing the client’s cost of risk.

Mike Travis:

I’ll add that a robust approach is needed from both risk managers and underwriters to identify and respond to emerging technological, environmental and geopolitical risks.

Also, at CNA we encourage and support continuous, lifelong learning and believe that an organization’s culture can be a source of sustained competitive advantage. Outside of supporting traditional talent development through industry accredited programs, our underwriters benefit from both internal and external subject matter expertise in both the US and Canada. Internally, Risk Control/Engineering and product line underwriting leaders play a vital role consulting with our teams. Externally, access to third party resources is vital in identifying emerging threats be they natural (wildfire, flood), or manmade (PFAS, lithium ion) through a multitude of sources (Bests, Moody’s, risk analytics firms, reinsurers, brokers, etc.)

In what ways do you think insured expectations are changing, and how should carriers respond to stay relevant and competitive?

Mike Travis:

First, I would say that client expectations have changed beyond financial protection. They expect customized solutions on-demand along with some self-service capabilities enabled by technology. Insurers must make sure that their systems and workflows are nimble and agile enough to satisfy these expectations.

Secondly, it’s clear that insureds are aware of current market conditions, like pricing, capacity and coverages, with a focus on rate and premium savings. Insurers need to emphasize their value proposition in this environment – such as know-how, underwriting, risk control, and claims handling – while remaining consistent in their underwriting approach and flexible in response to the market. That is certainly CNA’s approach.

Matt Santos:

Relationship building and client engagement through consistency and advisory are also key because insureds are increasingly expecting carriers and underwriters to understand the intricacies of their business, anticipate risks and offer strategic guidance.

What role do you think data and analytics will play in underwriting and claims management over the next decade?

Mike Travis:

Like any commercial enterprise, insurers are in business to make a profit in an industry that is becoming highly commoditized. Unlike other industries where products are sold with a profit margin, insurers may have to price policies lower than the associated risk. Underwriting profitable business and understanding those associated costs with attention to expense management are critical components of success. Data and analytics from third-party sources across various domains such as industry, environmental, individual and geographical, contribute to how thoroughly we can understand these risks.

Matt Santos:

Data analytics may evolve from merely supporting underwriting judgment to strategically enabling it. Today, underwriters rely on a set of skills and knowledge built through experience. This can include a general understanding of legal frameworks (especially in North America, where there can be interactions between multiple jurisdictions including federal, provincial/state and municipal, which might add complexity), insight into market dynamics and industry-specific nuances, as well as familiarity with the product and its positioning in the market.

Looking ahead, data handlers, including generative AI, may help shift the focus beyond exposure data. They could accelerate how knowledge is built and monitored, using real-time indicators tailored to the exposure, jurisdiction and legal environment. This would support both underwriting and claims teams in anticipating risk, not just assessing it, and contribute to more informed, proactive decision-making processes for accepting risks or managing claims. Ultimately, leveraging the power of AI for underwriting and claims management can help drive profitability.

How do CNA’s underwriting teams balance the need for customized solutions with the pressure for efficiency and scalability in underwriting?

Matt Santos:

Efficiency and scalability derive from having access to the right tools and the right data, not from forcing a one-size-fits-all solution. This means using technology like underwriting platforms, and even generative AI to streamline workflows while preserving sound underwriting judgment. It’s also about empowering professionals at different stages of development, ensuring the tools help structure their decision making, rather than making the decision for them.

Mike Travis:

One approach to this – and the strategy we currently use at CNA – is through increased specialization and clearly articulating risk appetite to brokers and clients. Specialization in the risk management space is a key success factor for us, along with a service offering that includes multi-line products and international capabilities.

Although the insurance industry is in constant flux, uncertainty and emerging global challenges invite proactive use of technology, underwriting and claims acumen and a refreshed approach to meet client expectations.

October 14, 2025
Is cyber risk just a big business concern — or a big threat to small firms too?

Rhea Turchinetz,
Head of Canada Underwriting
– Beazley Digital

Cyber threats are no longer just a big business problem. Small and medium-sized enterprises (SMEs) are increasingly in the crosshairs of cyber criminals and the risks are growing more complex by the day.

Vulnerable connections

One of the most significant shifts in the cyber threat landscape is the rise of third-party risk. Many SMEs depend on external IT providers, software vendors, and service partners to keep their operations running smoothly. But when one of those providers is compromised, the consequences can cascade across interconnected supply chains, pulling your business into the fallout. Recent cyber incidents involving school software platforms and auto dealership systems have shown how a single breach can disrupt hundreds of businesses simultaneously, underscoring the urgent need for robust vendor risk management.

Random ransomware

When it comes to ransomware, there’s no clear pattern or method of approach, with attacks becoming more unpredictable, and AI helping to make cyber criminals’ attacks more effective and efficient.

Despite this, many companies still believe they’re ready. Our research shows 80% of executives of SMEs based in Canada feel confident in their cyber preparedness, up from 64% in 2024. But our claims data tells a different story. The most common cause of claims? Phishing attacks, where an employee inadvertently clicks on a malicious link. It’s a simple mistake, but one that can have serious consequences.

Vital support

SMEs often lack the internal resources to manage cyber incidents, making comprehensive risk management support essential. Without expert support, a cyber incident can be devastating, potentially leading to bankruptcy for cash strapped businesses and overwhelmed management teams.

In Canada, 27% of executives are planning to explore insurance options this year that include risk and crisis management services, a clear signal that cyber protection is evolving. These enhanced policies go beyond covering first- and third-party financial losses; they help address the full spectrum of cyber risk. To build a resilient cybersecurity ecosystem, cyber insurance should offer SMEs access to expert incident response teams and cybersecurity specialists. This support helps businesses stay ahead of emerging threats, prepare effectively, and, if an incident occurs, minimise disruption and recover swiftly.

Complex regulatory web

Another challenge SMEs face is navigating regulatory differences across regions. Even SMEs with a relatively local footprint may handle data that is subject to differing international regulatory requirements – as companies serving customers in the US, UK, the EU and Asia will face a patchwork of rules from each jurisdiction. And keeping abreast of the latest regulations can be hard. Making managing international, cross-border cyber security difficult without expert help, and risky, as costly fines are likely for firms not compliant with local regulations.

Preparation is paramount

Strong cybersecurity and risk management can deter many threats, especially since most cyber criminals seek the path of least resistance. But recent headlines have made one thing clear: no business is impenetrable. Companies of all sizes must shift their mindset from reactive panic to proactive preparation. A well-rehearsed business continuity plan, paired with cyber insurance that includes access to incident response teams and cybersecurity experts, is now essential in today’s digital and interconnected world.

October 8, 2025
Build Cyber Resilience Without a Big IT Budget
As hackers come knocking, here are 5 smart ways to protect your brokerage today.

Cyber risk is no longer just a “big business” problem. While high-profile breaches at major institutions dominate the headlines, smaller firms — including brokerages — are increasingly in the crosshairs, but with far less public awareness.

Most Ontario insurance brokers understand that cyberattacks are a real possibility. Yet many still believe their brokerage is too small to attract attention, or that their existing safeguards are “good enough.”

The reality is: cyber criminals see brokerages as easy targets. As a broker, you handle sensitive client information and significant financial transactions every day. That makes your business a much bigger prize than your internal revenue numbers might suggest.

Fortunately, you don’t need a massive IT department to protect your brokerage. With a few focused steps, you can dramatically reduce your cyber risk. Below are five of the most common threats facing brokerages today, plus some practical ways to strengthen your defences.

1. AI-Driven Fraud and Social Engineering

Criminals are increasingly using artificial intelligence (AI) to impersonate clients, executives, and even regulators. Sophisticated social engineering tactics like deepfake audio, hyper-realistic phishing emails, and fabricated identities are designed to trick employees into sharing credentials, transferring funds, or releasing sensitive data.

What you can do:

If a request seems unusual, verify it through another trusted channel before acting.

Offer short, regular training sessions to help staff stay alert to red flags.

Enable multi-factor authentication (MFA) to protect email, client systems and any software containing sensitive data.

Run periodic phishing simulations to help staff recognize cyber scams.

2. Supply Chain and Vendor Security

Many brokerages rely on third-party services like CRMs, cloud storage, or managed IT providers. If one of these vendors is breached, your client data could be at risk, even if your own systems weren’t compromised.

What you can do:

Keep an up-to-date list of all vendors with access to your data.

Ask vendors how they manage patching, encryption and breach response.

Review contracts for minimum security standards and breach notification clauses.

Maintain secure backups in a location you control.

Limit access so vendors and staff only see the data they need.

3. Strengthen Basic Cyber Hygiene

Many breaches stem from simple oversights, such as weak passwords, outdated software, or missing antivirus protection. These issues are easy to fix but are often overlooked in day-to-day operations.

What you can do:

Make patching and updates a monthly habit.

Require strong, unique passwords and update them regularly.

Use reliable antivirus on every device and confirm it’s running.

Test backups to ensure data can be recovered when needed.

4. Regulatory Pressures Are Mounting

With evolving regulations such as PIPEDA, FSRA guidance and the proposed federal privacy law (Bill C-27), brokers face increasing accountability for data handling, consent management and breach reporting.

What you can do:

Review and update privacy and consent policies regularly.

Create a breach response plan that clearly defines roles and steps.

Train staff on confidentiality, fair treatment and reporting requirements.

Stay informed through FSRA, IBAO, or IBAC updates.

Keep records of all training sessions and policy reviews.

5. Preparedness is key

Cyber incidents are no longer a matter of if, but when. Without a tested incident response plan, even a small breach can lead to financial loss, reputational damage, operational delays and regulatory consequences.

What you can do:

Draft a simple incident response plan with clear roles, key contacts, and client communication strategy.

Test the plan annually, using scenarios like phishing scams or system outages.

Know your reporting obligations under PIPEDA and FSRA.

By taking small, smart steps today, you can protect your clients, your reputation and your business from fast-evolving cyber risks.

At CAA Insurance, we’re committed to helping our broker partners build stronger cyber resilience. Together, we can make Ontario’s broker network more secure and better prepared for whatever comes next.
October 6, 2025
How can smarter driver data help insurers manage nuclear verdicts?

Darrell Parsons, CEO, ISB Global Services

Commercial auto remains one of the hardest lines to underwrite in Canada. The sector is juggling higher claims severity, tighter compliance standards, cross-border uncertainty , and persistent driver shortages, all while underwriters need to make faster decisions and protect profitability. The growing risk of U.S. nuclear verdicts for Canadian trucks operating stateside raises the stakes even further.

As underwriting grows more selective, the question is how to avoid taking on the wrong risks, especially at the driver level, says Darrell Parsons, CEO of ISB Global Services, a leading insurtech provider in Canada.

“The answer is simple: better data drives better decisions,” he explains.

Sophisticated driver screening tools like ISB’s Red Flag Alerts put automated driver data and real-time risk insights in underwriters’ hands. With a single click, underwriters can identify high-risk drivers early, make faster, more confident decisions, and reduce the chance of costly claims, explains Parsons.

The rising cost of risk
Across Canada, commercial auto claims frequency is rising faster than the number of vehicles on the road, an imbalance that’s flowing directly into pricing pressure. Rate increases for commercial vehicles, including trucks, continue to climb, driven by higher accident rates, limited driver training, cargo complexity, and cross-border exposure.

“U.S. nuclear verdicts, where jury awards exceed US$10 million, are becoming more common in trucking liability cases against Canadian fleets getting into accidents south of the border,” explains Michael Thompson, Chief Commercial Officer at ISB.

“The prospect of eight-figure judgments is reshaping underwriting discipline. Documentation, eligibility, and auditability at the driver level now sit at the centre of risk selection, pricing, and portfolio protection.”

The gaps in driver screening

“On the commercial insurance side, too, many applications are still processed manually, and staffing shortages only compound the problem,” says Thompson. “When people are racing to keep up, errors can creep in, turnaround times get slower, and key details get missed.”

Relying on driver-submitted records is another weak spot for insurers. “We often hear of fleets or brokers asking drivers to provide their own abstracts to save a few dollars,” says Parsons. “With today’s tools, it’s easy to alter those documents. If the source isn’t trusted and current, you’re making decisions on bad information.”

“Screening drivers once a year just doesn’t cut it anymore,” Thompson adds. This leaves underwriters blind to red flags — like a suspended licence or a criminal conviction for speeding — that signal high-risk and non-compliant drivers. “If you only check at renewal, you’ll miss everything that changes during the term, and that increases the chances of coverage disputes and inflated settlements,” Thompson explains.

“Commercial auto rules can be really complex, and when different people apply them in different ways, you end up with gaps and inconsistencies,” he adds. “Automating that process ensures every rule is applied the same way, every time — removing bias and error. That’s exactly what underwriters need when they’re binding complex risks.”

The need for early detection
These gaps can quickly turn into bad risks, slower decisions, and bigger losses for insurers. “But when you’ve got the right data, you can underwrite faster and smarter —and with greater confidence,” Parsons says.

ISB’s Red Flag Alerts uses advanced automation, machine learning, and AI to tackle underwriting pain points quickly and intelligently. The system sources tamper-proof driver abstract data directly from transport ministries, converts it into structured data, and runs it through an adjudication engine matched to each carrier’s tolerance thresholds.

The result is immediate visibility into which drivers meet compliance standards and which don’t, says Thompson. Red Flag Alerts provides an automated driver scorecard with a simple pass or alert, based on real-time official records.

Automation also delivers scale. “You can process tens of thousands of records in minutes and go straight to the exceptions,” adds Parsons. “That means when an underwriter starts their day, they’re looking at which drivers are out of compliance and why — not spending hours digging through documents.”

Just as important, Red Flag Alerts strengthens compliance by creating audit-ready, digital time-stamped evidence that’s invaluable if a claim escalates to litigation. “One of the biggest risks in nuclear verdict cases is a gap in documentation that lawyers can exploit,” Thompson says. “When you can show traceable proof that compliance rules were followed, you’ve got your strongest defence.”

Prevention and performance

Smarter driver screening pays off on multiple fronts. First is loss avoidance: removing ineligible or high-risk drivers reduces both frequency and severity, including the kinds of losses that can escalate into costly litigation. Second is speed with accuracy: automation supports faster quote-to-bind without sacrificing diligence, which is critical when fleets are competing for scarce drivers. Third is defensibility: consistent, documented rule application and direct-from-source data strengthen an insurer’s position if a claim is contested.

“The goal is twofold,” says Parsons. “Improve underwriter productivity, and keep bad actors out before they get in. If you only discover the problem at the claim stage, you’re already too late. Ultimately, it’s also about insurers’ responsibility to help clients mitigate risk and create safer roads. When fleets know they’ll be checked continuously, driver behaviour improves. Over time, you’ll see healthier books, more compliant fleets, and stronger results for everyone.”

September 29, 2025