Key trends are shaping the future of insurance coverage across sectors, from automobile security to cybersecurity. Members of ACN’s editorial committee share their expertise on insurance trends agents should be aware of in the coming year, each highlighting the industry's efforts to address emerging risks and adapt to a rapidly changing market.
Growing Need for Cyber Insurance
With the rise in cyber threats and evolving data protection regulations, many are seeking coverage to mitigate risks associated with cyber incidents. “The growth of cyber insurance is a significant trend in the insurance market, driven by the increasing frequency and sophistication of cyber threats,” says Tanya Vlahovic, training & quality assurance manager for Marsh Canada. “As individuals and businesses become more reliant on digital technologies, the risk of data breaches, identity theft and cyberattacks has escalated, prompting a heightened demand for comprehensive cyber insurance coverage. Insurers are responding by developing tailored policies that address the unique risks associated with cyber incidents, including coverage for data loss, business interruption and liability arising from breaches.”
Vlahovic also noted how assessing the level of protection needed for firms is a component in cybersecurity insurance. “Insurers are also investing in risk assessment tools and resources to help policyholders understand their vulnerabilities and implement effective cybersecurity measures,” she says. “As awareness of cyber risks continues to grow, the cyber insurance market is expected to expand, with insurers innovating to offer more robust and flexible coverage options. This trend reflects a broader recognition of the importance of safeguarding digital assets in an increasingly interconnected world.”
Increase in Automobile Theft
Christie Smith, implementation specialist for Ontario Teachers Insurance Plan, highlighted an unfortunate trend that could affect anyone who owns a car — automobile theft. “Automobile theft is becoming an increasingly significant concern within the Canadian insurance industry, with trends indicating a sharp rise in theft rates across various provinces. Ontario and Quebec are seeing some of the highest increases,” she says. “This surge has been attributed to factors such as advancements in technology that make high-value vehicles more vulnerable, the growing demand for stolen parts on the black market and organized crime networks targeting specific vehicle models.”
The impact of this theft affects more than the insurance industry, which opens an opportunity to collaborate with other entities. “The escalation in auto theft not only burdens law enforcement but also places upward pressure on insurance premiums, as insurers adjust rates and apply surcharges to specified vehicles to account for higher claims costs,” Smith says. “To combat this trend, insurers and policyholders are focusing on enhanced security measures, such as tracking devices and anti-theft technologies, while advocating for stricter regulations and collaboration with law enforcement to deter criminal activity.”
Expansion Into Commercial Lines Insurance
Some agencies are expanding their focus. “We continue to see more and more agencies turning their attention to commercial lines. These are agencies who may have traditionally been personal lines-concentrated, and now they are renewing focus or expanding the scope of their commercial lines business,” says Jim England, senior product marketing manager for EZLynx.
A wider range of threats and the current market difficulties in personal lines are driving factors in the trend toward commercial lines. “Businesses are looking to protect themselves against an expanding list of risks, and that represents an opportunity for insurance agents to address their burgeoning needs,” England says. “Strides into commercial lines also generate strength and resilience for the future — the kind that only comes from diversification. The commercial insurance space also helps bolster an agency against the hard market conditions they are currently encountering in personal lines.”
These moves come with their fair share of challenges, though. “To climb this learning curve, agencies are seeking out expertise and how-to knowledge,” England says. “I recall EZLynx’s four-part commercial lines educational series at Applied Net 2024 being very popular! Agencies are also seeking out tools to make their submission workflows faster and more intuitive — to deliver more successful submission outcomes.”