The Applied Client Network Q2 Summit, held on May 7 and 8 in Toronto, Canada, gathered industry leaders to discuss the integration of artificial intelligence (AI) in the insurance sector, particularly within the Canadian property and casualty (P&C) market. The event featured discussions, presentations and networking opportunities that highlighted the current landscape and future potential of AI in insurance.
In each day’s recap, I summarize takeaways from the sessions I attended.
Day 1 Recap
Canadian Business Market Update
Steve Whitelaw, senior vice president and general manager at Applied Systems Canada, kicked off the summit with a comprehensive overview of the Canadian P&C insurance market, which generates approximately $77 billion in annual premiums, largely transacted through brokers. His presentation covered several important insights:
- Market Overview: In 2024, the market experienced a profit decrease of $9.4 billion and an increase in catastrophic losses of $8.4 billion. Regulatory scrutiny is increasing, and mergers and acquisitions (M&A) activity among insurance brokerages is on the rise.
- Workforce Challenges: The industry faces a talent shortage, with a quarter of the workforce expected to retire by 2027. The skillsets required have evolved due to digital transformation, but qualified candidates are scarce.
- AI Impact on Hiring: AI is becoming essential in hiring, with 71% of leaders preferring candidates with AI skills over more experienced candidates lacking them.
- AI Impact on the Insurance Industry: Analyses from firms like Bain and McKinsey suggest that AI will significantly enhance agency operations, driving growth and reducing operational errors by up to 90%.
Securing the Future: Vetting AI Solutions for Privacy and Security Risks
David Vetuschi, IT director at Lawrie Insurance Group, discussed the privacy and security risks associated with AI technologies. He emphasized the need for robust governance frameworks to mitigate these risks, including:
- Understanding the dual nature of AI tools, which can be exploited for cybercrimes.
- The importance of knowing data storage locations to avoid privacy law violations.
Keynote: Harnessing AI for Growth
Daniel Metcalf, cofounder and president at CyberFin, explored AI's transformative role in independent insurance agencies. He noted that only a small percentage of agencies have fully adopted AI, presenting a significant growth opportunity. Practical applications of AI discussed included:
- Automating scheduling and enhancing customer service through chatbots.
- Providing a checklist for safe AI adoption, emphasizing compliance and security.
Day 2 Recap
C-Suite Perspectives on Transformation and Innovation
Ben Isotta-Riches, chief distribution officer at Aviva Canada, shared insights on AI's impact on insurance distribution. Key points included:
- AI's potential to enhance efficiency in interactions between carriers and brokers while preserving the human element.
- The importance of trust in broker relationships and cultural alignment within organizations.
- The insurance industry's responsibility in addressing climate change and sustainability.
Optimizing the Product Roadmap
The product team at Applied provided updates on enhancements aimed at improving broker workflows and digital solutions. Key highlights included:
- General Updates: Applied achieved CSIO Commercial Lines Data Standards Level III Certification, ensuring clarity in eDocs for brokers.
- Commercial Line Updates: Features like Epic Quotes streamline the quoting process, while Indio enhances digital connections with customers.
- Personal Lines Updates: The IBC DASH Prefill feature saves brokers time by automatically populating policy data, and a new personal lines rater is being developed to simplify the personal lines journey.
- Recent and Upcoming Product Innovation:
- Epic Dashboards: Interactive reporting and analytics are now available.
- AI-Powered Email Summaries: Generate email summaries for Outlook with a click.
- Personal Lines Renewal Insights: Piloting in June 2025, this feature will compare current and renewed policy premiums.
- Epic Bridge: In development, this feature will connect Epic with the new Outlook for accurate communication records.
Underutilized Value-Add Features in Epic
The product team highlighted several valuable but underutilized features in Epic, including Renewals Manager, Email Monitoring and Annualized Premium Calculations.
AI-Driven Customer Engagement
Jamieson Fregeau, cofounder at Quandri, discussed how AI can enhance customer engagement, providing examples of successful implementations while acknowledging challenges related to data privacy.
AI in Action: Real-World Implementation
Jessica Traynor, vice president of intelligence & technology at Platform Insurance Management, shared insights on integrating AI into brokerage operations to enhance efficiency and customer service.
Practical AI Applications in Insurance
Melissa Zornes, senior vice president at OneGroup, moderated a panel discussion on practical AI applications in insurance operations, focusing on automating routine tasks and improving client relationships.
Final Thoughts
The Applied Client Network Q2 Summit provided a platform for industry professionals to explore AI's transformative potential in insurance. Discussions emphasized the importance of strategic implementation, addressing privacy and security risks, and fostering a culture of innovation. The insights shared offer a roadmap for agencies looking to leverage AI effectively while maintaining strong customer relationships and operational efficiency.
As the insurance industry evolves, integrating AI will be crucial in shaping its future, underscoring the need for collaboration, innovation, and a commitment to addressing challenges and opportunities ahead.