2026 Executive Outlook | Grant Ostir, Western Financial Group

In 2026, the property and casualty insurance industry will face a new challenge it did not fully contend with in 2025: the rapid evolution of consumer shopping behaviour driven by Artificial Intelligence (AI).

While AI’s role in cybersecurity and underwriting will continue to grow, its most immediate and visible impact will be on how Canadians search for, compare and purchase insurance.

Consumers are no longer passive recipients of quotes. They are active digital shoppers, using AI-powered platforms to find tailored coverage, compare rates in real-time and receive instant recommendations. This shift is being driven by generative AI tools that mirror human interaction, anticipate consumer needs, and deliver hyper-personalized experiences. Insurers must meet these expectations next year or risk losing relevance.

Rate volatility, driven by inflation, climate risk and regulatory shifts, will only accelerate this trend. Shoppers will increasingly rely on AI to navigate fluctuating premiums, identify value and optimize coverage. Traditional models of customer engagement will give way to intelligent automation and predictive analytics. And conversational AI will guide consumers through the buying journey with speed and precision.

This transformation is not just about convenience; it is about trust. Consumers will expect brokers and insurers to understand their needs before they articulate them, and to deliver solutions reflecting their lifestyles, digital footprints and risk profiles. Brokers and carriers must evolve from transactional service providers to proactive digital partners.

Brokers have been preparing for this shift by investing in AI-powered tools that enhance quoting, claims and customer support. We also focus on broker education, ensuring our teams are equipped to navigate this new landscape with confidence and care.

The challenge in 2026 will not be whether AI can improve the insurance experience; it will be how quickly and responsibly we adapt. As technology redefines the shopping journey, our industry must balance innovation with personalization, and automation with accountability.

Once a disruptive promise, AI is now a driving force. It’s actively reshaping how we do business today. Next year, it will fundamentally reshape how Canadians shop for insurance, demanding a smarter, faster and more human-centered approach.