Executive Summary

Insurance was once seen as a dull, necessary expense- something people grudgingly purchased and rarely thought about unless they needed to file a claim. From the 1970s through the early 2000s, buying insurance meant sitting down with a local Broker, flipping through policy brochures, and making decisions based on limited options. Today, the industry has transformed entirely—insurance is now a digital-first sector where consumers compare policies online, get instant quotes, and interact with AI-powered chatbots. With a flood of TV and social media ads from companies like Onlia, Sonnet, and Belairdirect, insurance is more accessible than ever, but also more competitive and technology driven. This shift has also fundamentally changed the composition of the industry, with increasing demand for professionals with expertise in data science, artificial intelligence, and digital marketing. Traditional roles such as Underwriters and Claims Adjusters are evolving to incorporate data analytics and automation, while new technology-focused positions are emerging to manage digital transformation.

The research outlined in this paper presents a comprehensive view of the insurance industry within Toronto’s Census Metropolitan Area (CMA), highlighting its significant growth and evolving challenges. The Insurance Carriers industry is experiencing robust expansion, driven by post-COVID economic recovery, technological advancements, regulatory changes, and market diversification, leading to increased employment since 2021. In contrast, the Agencies, Brokerages, and Other Insurance-Related Activities sector faces more stagnant growth due to regulatory changes, the rise of online platforms, and a lack of capital to invest in digital transformation. Many smaller Brokerages struggle to compete with larger firms and direct-to-consumer models that leverage AI and automation to offer competitive pricing and streamlined services. Despite these shifts, demand for skilled professionals remains strong, particularly in roles that align with the industry’s digital transformation.

The fundamental difference between an Insurance Carrier and a Brokerage lies in their roles in the industry. Carriers are companies that underwrite policies, assume risk, and manage claims. They set premiums based on actuarial calculations and regulatory guidelines. Brokerages, on the other hand, act as intermediaries, working with multiple carriers to find the best policies for clients. While Brokers traditionally helped customers navigate complex coverage options, direct-to-consumer sales and regulatory changes have diminished their role, forcing many to shift towards advisory and risk consulting services.

The transition towards a technology-driven business model has fundamentally changed consumer interactions, emphasizing speed, transparency, and personalization. Companies increasingly rely on data analytics to refine their offerings, improving customer satisfaction and operational efficiency. This shift has amplified the need for highly educated professionals, particularly in specialized roles such as actuaries and data scientists, reinforcing the industry’s movement toward more knowledge-intensive functions.

Artificial intelligence (AI) is further transforming the insurance landscape by automating routine tasks such as claims processing, fraud detection, and risk assessment. While AI increases efficiency, it also shifts the skill requirements within the industry, creating demand for expertise in machine learning, predictive analytics, and cybersecurity. As a result, traditional roles are evolving, and new job categories, such as AI specialists and digital risk analysts, are emerging. This technological shift necessitates continuous learning and adaptation, reinforcing the need for upskilling and specialized training programs.

In addition to technological shifts, legislative and regulatory changes have reshaped both Carriers and Brokers. Regulatory updates have increased transparency in pricing and underwriting practices, pushing carriers to take a more direct role in selling insurance products. Compliance requirements and consumer protection policies have also altered how Carriers assess risk and price policies, leading to increased reliance on data-driven decision-making. This shift has disrupted the historical Broker-carrier model, where Brokers primarily acted as intermediaries. While Brokers remain crucial for advising clients on complex policies, many are now adapting by offering value-added services, such as risk consulting and specialized coverage solutions. However, smaller Brokerages face challenges in meeting these new demands, contributing to slower growth in the sector.

Beyond employment, insurance plays a vital role in everyday life and is integral to industry stability, particularly in the face of climate change. As extreme weather events become more frequent, the demand for innovative risk mitigation and climate-related insurance products continues to rise, further cementing the industry’s significance.

Toronto is not just a key player in Canada’s insurance industry, it is the insurance capital of the country and a globally recognized financial hub. The city is home to the headquarters of major insurance firms, attracting international investment and talent. The insurance industry is a key driver of Toronto’s financial sector growth, contributing significantly to employment, innovation, and the broader economy. As the industry continues to evolve, Toronto’s role as a global leader in insurance will only strengthen, offering opportunities for businesses, workers, and policymakers to shape its future.

Key Findings:

The Insurance Carriers industry is growing, while Agencies and Brokerages face stagnation due to regulatory changes, digital disruption, and limited capital for modernization.

• AI and automation are reshaping roles, requiring expertise in data analytics, machine learning, and cybersecurity.
• Consumer expectations have shifted towards digital, with companies investing in personalization and efficiency.
• Legislative and regulatory changes have altered both the Carrier and Broker industries, leading to greater direct engagement by Carriers and evolving Broker roles.
• The demand for specialized skills, particularly in actuarial science, data science, and risk assessment, is increasing.
• Climate change is driving new insurance products and expanding the industry’s role in risk mitigation.