By Josh Recamara, Insurance Businesss
CAFII and Deloitte spotlight top tech trends
New research from the Canadian Association of Financial Institutions in Insurance (CAFII) and Deloitte explored how artificial intelligence, advanced analytics and digital-first strategies are reshaping the Credit Protection Insurance (CPI) industry in Canada.
The report, called “Exploring Emerging Technology & Gen AI Trends in CPI,” highlighted how insurers are updating their underwriting processes, streamlining claims and responding to increasing consumer demand for digital engagement, while also facing challenges related to technology adoption.
Keith Martin, executive director of CAFII, emphasized that the research points to the need for the insurance industry to modernize. According to Martin, AI and automation are enhancing operational efficiency, but outdated systems and complex regulatory frameworks remain significant obstacles. He called for greater investment in technologies that prioritize consumer accessibility and improve the overall insurance experience.
Role of AI in underwriting
According to the research, AI-driven models are expected to shorten approval times, refine risk assessments and make insurance more inclusive for a wider range of consumers.
The study found that more than 60% of insurers anticipate that AI will have a significant impact on underwriting and claims processing in the next three to five years, helping insurers make more data-driven decisions and improving accuracy.
The report also noted the shift towards digital-first insurance solutions, as more consumers expect greater access to services online. Over half of CPI insurers are focusing on digital engagement tools, such as mobile-first experiences, real-time policy access and digital education resources.
Approximately 33% of insurers consider improving customer experience through these technologies a key priority for their investments, reflecting a broader shift toward more consumer-friendly insurance solutions.
Additionally, cloud-based platforms are gaining traction in the industry, with 70% of insurers identifying cloud computing as essential for improving operational efficiency, security compliance and the integration of AI-driven insights.
However, legacy systems and regulatory challenges are hindering insurers’ ability to implement these solutions more broadly, with 70% of insurers citing outdated infrastructure as the major barrier to progress, according to the study.
