Canadians are slowing spending on items valuable enough to insure, causing headwinds for Canada's insurance industry. The Canadian Medical Association says the slowdown in health care costs is a result of two factors. While insurtech will lead to cost savings and efficiencies, it will also increase competition that is likely to reduce profitability, the board said.
Canadians are slowing spending on items valuable enough to insure, causing headwinds for Canada's insurance industry. The trend, as well as disruption from new insurtech and an ageing population, have been cited as challenges by the Conference Board of Canada, which also said a surge in claims from the Fort McMurray wildfires weighed on bottom lines last year. While insurtech will lead to cost savings and efficiencies, it will also increase competition that is likely to reduce profitability, the board said.