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Mortgage Renewals Are Surging. Is Your Protection Keeping Up?

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By Keith Martin, Executive Director, Canadian Association of Financial Institutions in Insurance (CAFII)

For millions of Canadian homeowners, 2025 and 2026 represent one of the most significant financial moments in recent memory. About 60 per cent of all outstanding mortgages in Canada are expected to renew during this period, many of them originally locked in when interest rates were near historic lows. For borrowers who secured a five-year fixed-rate mortgage during the pandemic, monthly payments could climb by 15 to 20 per cent at renewal. Bank of CanadaCMP 

That’s a meaningful shift in household budgets. And it’s prompting many Canadians to take a closer look at their finances — sometimes for the first time in years. 

But while most of the conversation around renewal focuses on rates and terms, there’s an important topic that is often not considered: In the event of an injury or illness or if you pass away, do you have adequate protections preventing you from working or could your family maintain the mortgage payments should you pass away? While not pleasant issues to consider, being prepared for these what if situations is critical to being prepared and making sure your family is protected 

Renewal is a financial checkpoint, not just a rate negotiation 

When a mortgage comes up for renewal, it’s tempting to focus narrowly on locking in the best rate. That’s understandable. For many households, the payment difference matters. 

What’s easy to overlook is that renewal is also one of the few moments when Canadians sit down with their financial institution and review their full mortgage picture. It’s a natural opening to ask whether the protection behind that mortgage still reflects life as it stands today. 

Families change. Incomes change. Health circumstances change. A coverage decision made five years ago may not be the right fit today. 

Four types of mortgage protection worth understanding 

There are four main forms of mortgage protection insurance available to Canadian homeowners, each designed to address a different kind of financial disruption: 

Mortgage life insurance helps pays out the outstanding balance of your mortgage in the event of your death, helping ensure your family can remain in their home without carrying that financial burden. 

Mortgage disability insurance helps cover your mortgage payments if you become disabled and are unable to work — providing stability during a period when income can drop significantly and unexpectedly. 

Mortgage critical illness insurance provides a benefit if you are diagnosed with a covered serious illness such as cancer, heart attack, or stroke, giving you the financial flexibility to focus on recovery rather than payments. 

Mortgage job loss insurance makes your mortgage payments on your behalf for a limited period if you involuntarily lose your employment – a bridge that keeps your home protected while you get back on your feet. 

Together, these products are designed to cover the kinds of life events that can make it difficult to keep up with a mortgage: Passing away, becoming disabled, a serious illness or losing a job. Not every household needs every type of coverage. But understanding what each one does is the starting point for making an informed decision. 

The risk Canadians are most worried about and least covered for 

Of the four types of protection, job loss coverage deserves particular attention right now. 

More than half of Canadian mortgage holders have expressed concern about job loss in the coming year, a reflection of broader economic uncertainty that many households are navigating alongside their renewal. And yet job loss is one of the least represented risks in existing mortgage protection policies. According to a 2025 Pollara Strategic Insights study commissioned by CAFII, only 66 per cent of mortgage-related Credit Protection Insurance policies include job loss coverage, compared to 94 per cent for life coverage. 

That gap matters. If a household’s primary earner loses their job, the mortgage doesn’t pause. Payments continue to come due, even as income disappears. Job loss insurance exists precisely to bridge that window, making payments while a homeowner finds their footing again. 

For anyone renewing a mortgage in the current environment, it’s worth asking directly: does my coverage include job loss protection? 

Confidence isn’t the same as coverage 

One pattern that shows up consistently in research on Canadian homeowners is a gap between how protected people feel and what their coverage actually provides. Many Canadians carry insurance they don’t fully understand, not because they’re careless, but because these products are rarely top of mind until they’re needed. 

That tends to change at renewal. When Canadians are already reviewing their mortgage, they’re more likely to look at the full picture, including the protections attached to it. 

CAFII research has found that nearly four in ten mortgage holders aren’t confident they could cover their mortgage payments if the household’s primary income disappeared. That’s a meaningful number of families carrying more financial exposure than they may realize. 

Renewal is the moment to close that gap, to look at what you have, understand what it actually covers, and make sure it reflects the life you’re living now, not the one you had five years ago. 

A few questions worth raising at renewal 

You don’t need to overhaul your finances to make this renewal more productive. A few straightforward questions can make a significant difference: 

  • Does my current coverage include protection for job loss, disability, or critical illness — not just life coverage? 
  • If my income changed suddenly, how long would my existing protection support my mortgage payments? 
  • Has anything changed in my household over the last five years that should change how I think about coverage? 

These aren’t complicated conversations. But they’re ones that many Canadians haven’t had reason to have, until now. 

The bottom line 

Mortgage renewal season draws attention to rates, terms, and lender options. All of that matters. But it’s also an opportunity to look beyond the payment and ask a more fundamental question: if something unexpected happened, is your home protected? 

For the millions of Canadians renewing in 2026, this is the moment to find out. 

CAFII is the Canadian Association of Financial Institutions in Insurance. We work to support an open, competitive marketplace that gives consumers expanded choice and access to insurance products and services. Learn more about mortgage protection options at cafii.com. 

Summary of CAFII’s 2026 Annual Members Luncheon

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CAFII’s Annual Members Luncheon was held on May 5, 2026, at the beautiful facilities of SixtyEight in downtown Toronto. The luncheon included a panel discussion featuring three economists: Jimmy Jean, Vice President, Chief Economist, and Strategist at Desjardins Group; Cynthia Leach, Assistant Chief Economist at RBC; and Alex Grassino, Global Chief Economist at Manulife Investment Management. The speakers were introduced by CAFII Board Chair Val Gillis (SVP, TD Insurance) and thanked by incoming Board Chair Julie Gaudry (VP, RBC Insurance), and the panel was moderated by CAFII’s Executive Director, Keith Martin, and Senior Research and Policy Analyst, Robyn Jennings.

The conversation was fascinating, with the panel discussing the state of the Canadian economy, interest rate expectations, the risk of a recession, and geopolitical issues. The impact of the conflict in the Middle East on the Canadian economy was discussed, particularly inflation and rising gas prices. Population and demographic issues were also explored, including the increase in provincial health care budgets, which now account for over 50% of provincial budgets in most provinces. There was also discussion of mortgage trends and the impact of costs on the likelihood that people will not obtain optional insurance.

Summary of CAFII’s Webinar: AI is here. Now What? An Operator’s Playbook for Unlearning and Relearning Insurance

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On January 29, 2026, CAFII hosted a webinar titled AI is here. Now What? An Operator’s Playbook for Unlearning and Relearning Insurance. CAFII’s Executive Director, Keith Martin, opened the session by thanking attendees and introducing CAFII’s Senior Research and Policy Analyst, Robyn Jennings, who in turn introduced the featured speaker, Tatenda Manjengwa, Executive Vice President of AI Strategy and Product Management within financial services.

Mr. Manjengwa is a recognized AI leader who transforms emerging capabilities into production-grade solutions in highly regulated environments. In his previous role as Managing Director, Head of BMO Wealth Management’s AI Innovation Lab, he drove enterprise-wide AI adoption across 5,000+ employees, launching Rovr AI, Canada’s first of its kind external-facing generative AI assistant for insurance underwriting, while establishing governance frameworks across BMO Private Wealth, Global Asset Management, Insurance, and InvestorLine. With 20+ years spanning capital markets and wealth management at BMO, Bloomberg, Citibank, and Deutsche Bank, Mr. Manjengwa operates at the intersection of AI product strategy, quantitative finance, and commercial innovation. He has led cross-functional teams of data scientists and engineers, deploying NLP- and AI-enabled workflows on secure, scalable multi-cloud platforms that improved client experience and reduced operating costs.

Mr. Manjengwa holds an MBA from Chicago Booth and an MSc in Business Analytics & AI from NYU Stern. A lifelong learner, he is currently pursuing his third master’s degree: an MS in Computer Science at Georgia Tech.

Following the introduction, R. Jennings extended a special welcome to several VIP guest attendees, including CAFII’s 14 member companies, 14 Associates, allied industry associations such as the Canadian Life and Health Insurance Association (CLHIA) and the Travel and Health Insurance Association of Canada (THIA), and representatives from various insurance and financial services regulators and policy-making authorities, including:

  • Alberta Insurance Council
  • The Government of Alberta
  • Alberta Treasury Board and Finance
  • The Autorité des marchés financiers (AMF)
  • The British Columbia Financial Services Authority (BCFSA)
  • The BC Ministry of Finance
  • The Insurance Council of BC
  • The Financial Consumer Agency of Canada (FCAC)
  • The Financial Services Regulatory Authority of Ontario (FSRA)
  • The Insurance Council of Manitoba
  • The Insurance Council of Saskatchewan

R. Jennings opened the discussion by asking T. Manjengwa to summarize the state of AI in financial services. He framed the moment in concrete terms: AI is here, but the work now is turning hype into hard-dollar outcomes. The industry’s task is shifting from experimentation to industrialization — from one-off pilots to a disciplined, scalable AI manufacturing line that reliably ships results, not just ideas. He characterized this as the move from AI-curious to AI-capable. The deeper question, he added, is not how to use AI to do what firms already do — but what becomes possible that was previously unthinkable, and whether organizations are building themselves to ask that question seriously.

Canada, he noted, has been punching above its weight: Manulife ranks fifth among the world’s 30 largest insurers in Evident’s global AI maturity index, and is one of only three firms to place in the top ten across every dimension measured. The opportunity is tangible; the question is whether organizations have built the factory to capture it.

T. Manjengwa clarified that when he refers to AI, he means actual machine learning models, including generative AI. He encouraged intentionality and discipline as organizations scale these technologies — moving from a small team of AI engineers familiar with the tools to embedding capability across every level of the business. That structural shift, he argued, will separate firms that lead from firms that stall.

R. Jennings asked how leaders can integrate AI into deeply embedded legacy systems. T. Manjengwa replied: “We are not prisoners of our legacy systems — we are prisoners of the ideas that brought us here.” These systems were built to support the financial institutions of a different era. They have served us, but the operating logic must change. He suggested a three-phase approach:

  • Preparation Phase: a complete diagnostic to map current systems, identify what is critical to core operations, and determine the cost and feasibility of modernization.
  • Integration Phase: targeted deployments to test value, surface trade-offs (training, infrastructure, temporary productivity dips), and prove out the model before broader rollout.
  • Continuous Optimization: monitor, retrain, and iterate. AI capability is a living system, not a finished project.

Asked what insurers must unlearn first, T. Manjengwa invoked Alvin Toffler’s line that the literate of the 21st century will be those who can learn, unlearn, and relearn — and was direct: AI is not a side conversation parallel to business — it is the business conversation. Three specific unlearnings followed: that AI is a technology problem to be solved by data scientists (it is an organizational transformation requiring workflow redesign and change management); that certainty must precede action (it must not, in environments this dynamic); and that pilot culture is sufficient (it is the trap most firms get stuck in). Digitization, he noted, fails when best-in-class tools are layered on top of analogue, redundant processes. Leaders must internalize that change management is not part of what they do — it is what they do. Deploy AI only to replicate existing workflows, he warned, and you risk scaling today’s constraints into tomorrow’s systems.

As much as we shape AI, it also shapes us.

On balancing risk-aversion with the need to experiment, T. Manjengwa was measured: being smart, methodical, and equipped with the right guardrails allows leaders to balance risk and innovation. Active engagement with regulators is essential — calibrating AI guardrails will require many participants. And firms must put the right people in the right seats; AI is complex, and capable, talented teams will make the difference.

On the qualities to hire for, he prioritized two: curiosity and humility. Curiosity drives experimentation and innovation; humility enables course correction when something is not working. Combined with a strong knowledge base, these traits enable an organization to learn, relearn, and unlearn at the pace the technology demands.

On regulatory governance, T. Manjengwa called for a shift from a posture of compliance-and-monitoring toward genuine co-creation between industry and regulators. Regulators will need deeper familiarity with business models to ensure rules promote responsible innovation rather than stifle it. He encouraged the same talent discipline on the regulatory side — the right people in the right roles.

R. Jennings raised the concern around AI replacing humans, asking where human judgment must permanently reside. T. Manjengwa responded that LLMs are probabilistic by design and require a human-in-the-loop, particularly when handling financial information and adverse decisions. Citing Satya Nadella’s recent comments at Davos, he noted that real value comes from grounding these models in firm-specific context — but that is one input, not the final answer. AI should be regarded as a tool to augment judgment, not replace it; offloading menial work — for example, summarizing a 60-page document — frees experts to focus on the complex, the contested, and the consequential. The deeper test, he suggested, is not what AI can do, but what we are willing to entrust to it — and, just as importantly, what we refuse to relinquish.

On work unbundling, T. Manjengwa explained that traditional roles are being decomposed into component tasks, with AI handling structured analysis while humans focus on judgment, relationships, and complex cases. He cited the recent McKinsey CEO framing of an organization with 40,000 humans and 25,000 agents — and the practical reality that managers will increasingly orchestrate both. The claims adjuster is illustrative: AI automates intake and damage estimation; the human is freed for disputed and complex matters. Jobs will not vanish, but they will evolve, and the skills firms recruit for must evolve with them.

The deeper shift, he suggested, is not in how insurers do the work but in what the work itself becomes. McKinsey has framed it as the move from “detect and fix” to “forecast and avert” — from a business that indemnifies losses after they occur to one that uses continuous intelligence to prevent them. Parametric products, real-time risk monitoring, prevention as a revenue line: these are not adjacencies to insurance; increasingly, they are what insurance is becoming. The unbundling of jobs is the operational symptom; the rebundling of the value proposition is the deeper event.

The corollary is a hiring redesign: the goal cannot be turning the next generation of professionals into mere exception-handlers. Roles must be designed around uniquely human skills — judgment, empathy, complex reasoning — paired with fluent AI use.

Asked who is responsible when AI makes or influences a bad decision, T. Manjengwa was clear: accountability sits with the team and the organization, not a single individual. Building interdisciplinary teams — business, regulatory, and technical expertise together — is what makes AI defensible. There will always be a chief analytics officer, but successes and failures should be read as collective. When AI succeeds, it is a team result; when it fails, the same logic applies.

On what firms owe their customers, he was unequivocal: full transparency on how data is used and where AI is involved. In financial services, disclosure is not optional.

R. Jennings asked why so many AI programs fail. T. Manjengwa pointed to MIT’s recent NANDA report finding that 95% of generative AI pilots produce no measurable P&L impact. The root cause is the execution model: teams chase flashy use cases rather than solving real business problems, and they try to do it without seasoned partners. The takeaway is twofold — solve a real business problem, and do not start from scratch. Working with vendors and consultants is a strength, not a weakness; he referenced the Rovr AI build at BMO, which leaned heavily on Microsoft, not for lack of internal talent but because the territory was new for everyone.

Closing the webinar, R. Jennings asked what would constitute evidence that an insurer has moved from AI-curious to AI-capable. T. Manjengwa pointed to several markers: a structured, rigorous implementation discipline that has evolved past use cases into a philosophy of continuous learning and experimentation; visible adoption metrics — Manulife, for instance, has reported a 75% adoption rate of AI tools across its workforce after years of systematic investment; and active regulator engagement. He flagged the regulatory horizon as well — OSFI’s Guideline E-23 on Model Risk Management takes effect May 1, 2027, and applies to all federally regulated financial institutions. The recent CAFII–Deloitte study, in which more than 60% of insurers expect AI to materially impact underwriting and claims, underscores why the move from curious to capable is now an industry-wide imperative.

T. Manjengwa concluded with a quote from John Schaar that reads “The future is not some place we are going, but one we are creating. The paths are not to be found, but made. And the activity of making them changes both the maker and the destination.” The work, he closed, is not merely to adopt tools but to align them to a clear aspiration for the kind of institutions this industry chooses to become. These are questions of identity, courage, and imagination — and the answers we choose will shape us long after today’s tools have changed.

CPI: A Safety Net for Canadian Homeowners on a Budget

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By Keith Martin, Executive Director, CAFII.

For many Canadians, owning a home is a cornerstone of financial security. However, with rising costs of living, unexpected events like disability can disrupt this stability, especially for low-income households. This is where Credit Protection Insurance (CPI) provides a crucial financial safety net.

Research conducted by LIMRA on behalf of the Canadian Association of Financial Institutions in Insurance (CAFII) earlier this year found that 80% of Canadian homeowners are either uninsured or underinsured. This statistic indicates a significant protection gap, particularly for those who might struggle financially if faced with a disability.

Many low-income families have limited financial resources and little room for unexpected expenses. A disability can be financially devastating, making it difficult to keep up with mortgage payments. CPI addresses this by covering mortgage payments up to the policy premium during a disability. CPI pays the monthly mortgage directly to the bank, providing critical support to families who lack sufficient savings or prefer to preserve their savings for future plans instead of using them to pay down debt.  

Having a safety net in place allows budget-conscious homeowners to face the future with more confidence. CPI acts as a shield against the financial hardship that a disability can bring, safeguarding their homeownership and financial stability. Knowing they have this protection enables homeowners to focus on their recovery and other important aspects of life.

Generally, employer-paid disability benefits cover around 66% of an employee’s income, leaving a shortfall of 34%. This gap can create financial strain, especially when you have mortgage payments to consider. Disability insurance can bridge this gap, ensuring that your homeownership journey remains secure even if you’re unable to work. By exploring your CPI options, you can protect your most valuable asset – your home – and maintain peace of mind in the event of a disability.

Credit Protection Insurance is more than just a financial product; it is a lifeline for many Canadian homeowners. Particularly for those on a tight budget, CPI offers a critical layer of protection against the uncertainties of life.

CAFII Elects Valerie Gillis as New Chair of the Board of Directors

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FOR IMMEDIATE RELEASE

Valerie Gillis, SVP of Life, Health and Credit Protection at TD Insurance becomes new Chair of the Board of Directors after Peter D. Thompson steps down.

(Toronto, Ontario, June 6, 2024) – The Canadian Association of Financial Institutions Insurance (CAFII), a leading national industry association, proudly announces the election of Valerie Gillis, SVP of Life, Health, and Credit Protection at TD Insurance, as the new Chair of the Board of Directors. Ms. Gillis has been a dedicated and active board member since December 2022.

“CAFII plays a pivotal role in advocating for our members and ensuring Canadians have access to comprehensive, competitive insurance products and I am honoured to take on the role of Chair of the Board of Directors,” says Valerie Gillis, SVP of Life, Health, and Credit Protection at TD Insurance. “I look forward to building upon the exceptional work of my predecessor, Peter Thompson, and leading CAFII in driving innovative advocacy within the insurance industry.”

As Chair of the Board of Directors, Ms. Gillis will spearhead CAFII’s strategic initiatives, foster collaboration among member institutions, and enhance the association’s role in shaping industry policies and standards. Her leadership is expected to propel CAFII’s mission of promoting an open and flexible insurance marketplace, benefiting both members and Canadian consumers.

Ms. Gillis succeeds Peter D. Thompson, CEO National Bank Insurance, who served as Board Chair since June 2022.

“It has been an honour to serve as Chair of CAFII’s Board,” says Peter D. Thompson, CEO of National Bank Insurance. “I am confident that Valerie Gillis, with her extensive experience and unwavering dedication, will provide exemplary leadership for the association. Under her guidance, CAFII will continue to champion policies that benefit both our members and Canadian consumers.”

CAFII plays a crucial role in advocating for public policies that protect and promote the interests of its members, ensuring they can offer competitive and comprehensive insurance products. Established in 1997, the association encompasses a variety of financial institutions that distribute insurance through multiple channels including contact centers, agents, brokers, travel agents, direct mail, financial institution brands and online platforms. 

The association also works closely with government regulators at both federal and provincial levels to help shape a legislative and regulatory framework that ensures Canadian consumers have access to insurance products that suit their needs. CAFII remains dedicated to maintaining high standards in the distribution and marketing of all insurance products and services.

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About CAFII: The Canadian Association of Financial Institutions in Insurance is a not-for-profit industry association dedicated to the development of an open and flexible insurance marketplace. CAFII believes that consumers are best served when they have meaningful choice in the purchase of insurance products and services. CAFII’s 15 members include the insurance arms of Canada’s major financial institutions–BMO Insurance, CIBC Insurance, Desjardins Insurance, National Bank Insurance, RBC Insurance, Scotia Insurance, Canadian Western Bank and TD Insurance, along with major industry players Assurant Canada, The Canada Life Assurance Company, Canadian Tire Bank, Chubb Life Insurance Company of Canada, CUMIS Services Incorporated, Manulife (The Manufacturers Life Insurance Company), and Securian Canada.

For further information and media requests:

Contact: Wendy Bairos, Media Consultant
Email: wendy.bairos@cafii.com
Phone: 416-831-9820

Navigating the CPI Claims Process with Ease

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By Keith Martin, Executive Director, CAFII.

At the Canadian Association of Financial Institutions in Insurance (CAFII), we are committed to demystifying the claims process so Canadians can feel equipped and confident when they need to navigate these waters. Our latest video, “Discover the Ease of Filing a Credit Protection Insurance Claim,” offers a guide on how to seamlessly manage and submit a CPI claim. This is just one-way CAFII works hard to simplify the insurance processes for everyone.

Understanding what financial tools are available is crucial to ensuring financial safety and success. One such product is Credit Protection Insurance (CPI). CPI can act as a financial safety net, covering debts such as mortgages, personal loans, and lines of credit in events like critical illness, disability, job loss, or death. The process to secure this coverage starts at the application stage, where answering some health-related questions will help determine your eligibility and premium. It’s a critical first step that tailors coverage to your unique situation.

Upon securing CPI, policyholders are provided with a Certificate of Insurance. This document is not just a piece of paper but a comprehensive guide that outlines coverage details, terms, and the steps to file a claim. It’s designed to make the claim process transparent and straightforward, ensuring you know exactly what to do and when.

Should the need to file a claim arise, the path is clearly laid out. Reporting the event as described in your Certificate of Insurance kicks off the process. Through our website, CAFII has streamlined access to support and guidance, offering direct links to member companies and detailed contact information to assist you in this step.

Gathering and submitting the required documentation is an integral part of the claims process. Whether it’s medical records, a doctor’s diagnosis, or a death certificate, these documents provide the evidence needed to support your claim. This step underscores the importance of transparency and thoroughness in ensuring your claim is processed efficiently.

Our video illustrates not just the steps involved in the claims process but also emphasizes the diligence with which each claim is reviewed. The review process is comprehensive, with insurers possibly seeking additional information and/or verification to ensure every claim is assessed fairly. While this might extend the time frame for a claim’s resolution, it’s a crucial aspect of ensuring accuracy and fairness for all parties involved.

The high rate of successful claims payouts highlights CPI’s efficacy, a reassuring fact for policyholders. This success rate is indicative of CPI’s reliability as a financial safeguard, providing tangible support during times of need.

CAFII’s video, “Discover the Ease of Filing a Credit Protection Insurance Claim,” is a resource designed to empower Canadians. By breaking down the CPI claims process into clear, manageable steps, we aim to alleviate the stress and uncertainty that can accompany these situations.

At CAFII, our goal is to provide the tools and information needed to navigate the insurance landscape with confidence, ensuring that everyone has the support they need exactly when they need it.