Canadian Industrial Outlook
This report examines the short-and medium-term economic and profitability outlook for Canada’s insurance industry.
Moderating Economy—After expanding by 1.8 per cent in 2018, economic growth in Canada will remain modest in the medium term. Record levels of household debt and slower employment growth will dampen consumers’ ability to buy new homes, cars, or other big-ticket, insurable items. Thus, industry growth is expected to be weaker than recent averages.
Tracking Devices—The aging population is a challenge for life insurers that face difficulty finding enough new, young enrollees to offset the higher costs from a rising number of death benefit claims. So firms are trying to shift from traditional pricing models to new incentive-based systems offering rewards and discounts for healthy behaviours, tracked by technology.
New Cyber-Incident Rules—New technology and cyber-incident rules proposed by the Office of the Superintendent of Financial Institutions (OSFI) come into effect on March 31, 2019. They require financial institutions to report cyber attacks and other related events to the OSFI, helping to protect consumers and financial institutions as data breaches are becoming more common.