Canadian MGAs’ pace of digital adoption makes the market ‘poised for disruption’

Managing general agents (MGAs) in Canada are generally adopting digital solutions at a slower pace than their counterparts in the United States or the United Kingdom, making the Canadian market “poised for disruption,” says an MGA seeking to expand into the country.

“While Canadian MGAs share global priorities around transparency, risk sophistication, and regulatory compliance, the sector lags in digital transformation compared to markets like the U.S. and U.K.,” says Jacqui Ferrier, who took over the reins at Carbon Underwriting, a managing general underwriter, two months ago.

“This slower pace presents both a challenge and a strategic opportunity: firms that bring advanced data capabilities, automation, and digital underwriting platforms can leap ahead.

“Moreover, with increasing specialization and a shift in talent toward more tech-savvy roles, the Canadian market is poised for disruption, making it an ideal environment for innovative players to lead that change.”

Founded in July 2020, Carbon Underwriting is a multi-line MGU, offering insurance solutions in specialty property, casualty, financial lines, accident and health, and, more recently, healthcare.
With Lloyds’ capital backing, it has set up coverholder panels in several countries, including Europe, Australia, and Canada.

Expansion in Canada is a priority for Carbon, Ferrier tells CU.

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“We’re actively exploring new partnerships with high-performing MGAs and brokers, particularly in specialty lines where capacity and insight are both needed,” Ferrier says. “That includes financial lines, healthcare, and niche casualty risks.

“We don’t see Canada as a one-size-fits-all market. It’s about finding aligned partners who value collaboration, data, and long-term relationships.”

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Brokers and underwriters in Canada have reported a more advanced use of analytics over the past several years. For brokers, data is key for differentiating their clients’ risks from their market competitors, giving them access to more favourable terms and conditions, and premiums, on their policies.

For underwriters, data segmentation is key to assessing and pricing the risk correctly. It’s what they call a form of “performance accountability.” It’s essential for developing a sustainable, diverse — and profitable — book of business over a geographically expansive country featuring a variety of regional quirks.

“The Canadian market presents a few unique challenges, including bilingual regulatory environments, Cat exposures that vary significantly by region, and a relatively small pool of specialist capacity,” Ferrier says.

“That said, these are exactly the kinds of challenges where our data-driven model and delegated authority expertise can add real value. It’s about making local nuance visible and actionable at a portfolio level.”

David Gambrill

David has twice served as Canadian Underwriter’s senior editor, both from 2005 to 2012, and again from 2017 to the present.