Here are some key updates in Property & Casualty (P&C) Insurance that are particularly relevant for agents and brokers in 2024:
1. Mergers and Acquisitions (M&A) in P&C
While large-scale M&A has slowed, private equity interest in P&C brokerages remains strong. Many U.S. and European private equity firms are looking to invest in Canada’s highly fragmented P&C market, sparking consolidation. This trend is creating opportunities for brokers to gain scale, improve technology, and increase operational efficiency【15†source】. Brokers involved in acquisitions are finding it crucial to align their practices with technological advancements, which is driving innovation in the sector.
2. Regulatory Shifts Affecting P&C Brokers
The Office of the Superintendent of Financial Institutions (OSFI) and other regulators are imposing stricter requirements around climate-related risks and third-party risk management. Brokers are increasingly required to advise clients on managing climate risks, particularly when underwriting policies related to property. In addition, stricter guidelines on cybersecurity, third-party service providers, and model risk management are affecting the way brokers operate【15†source】.
3. Cyber Insurance as a Growing Sector
Cyber insurance has become a hot topic in the P&C world as cyber threats grow in complexity. Brokers are finding cyber insurance to be an essential product line, particularly for small and mid-sized businesses, which are increasingly vulnerable to cyberattacks. Demand for cyber policies is surging, and brokers need to be well-versed in this area to meet clients’ evolving needs【15†source】.
4. Technology and Digital Transformation
Digital transformation remains a significant focus in the P&C insurance landscape. Many brokerages are adopting Artificial Intelligence (AI) and automation tools to streamline customer interactions and claims processing. This shift is not only enhancing client service but also reducing operational costs, allowing brokers to focus more on growth and client retention【14†source】【15†source】.
5. Industry Talent Shortages
The P&C insurance sector continues to face challenges related to workforce shortages. As Millennials and Gen Z become dominant in the workforce, brokers and agencies are looking for ways to attract and retain talent. Emphasis on creating inclusive workplaces and offering continuous professional development are key strategies brokers are employing to remain competitive in the job market【15†source】.
These trends are shaping the way P&C brokers do business in 2024, with increased focus on consolidation, technology, regulatory compliance, and talent development driving the industry forward.
