P&C claims are changing faster than they have in 30 years. How can Canadian insurers adapt to 6 game-changing trends to stay competitive?

Key takeaways

• Claims functions are becoming seamless, fast, and AI‑enabled—compressing cycle times, reducing leakage, and improving the policyholder experience when it matters most.
• Surge readiness is now a core capability, not a contingency plan. Cloud and automation are essential to protecting both customers and the combined ratio during volatility.
• Talent strategy is business strategy. Automation isn’t replacing expertise—it’s refocusing it where judgment, negotiation, and experience create the most value.  

How policyholders interact with insurers when filing and settling claims will soon be unrecognizable. Property and casualty insurers’ claims functions are transforming faster than at any point in the last 30 years, driven by rising loss costs, climate volatility, fraud, talent shortages, and digital‑first customer expectations.

We see six shifts defining the future of P&C claims in Canada. With these changes, leading insurers will be better positioned to manage risk, improve resilience, and deliver superior customer experiences.

1. Seamless, always‑on claims journeys

Consumer expectations are changing and claims journeys are shifting from episodic, reactive handoffs to seamless, proactive, and conversational experiences that help build trust and loyalty. Leading carriers enable customers to initiate, update, and resolve claims via web, mobile, messaging, voice, or AI agents. Information is carried seamlessly across channels. Proactive updates with clear next steps and ETAs reduce uncertainty and deflect inbound calls.

Instant or near‑real‑time payments are becoming the norm in a subset of claims journeys. During catastrophic events, parametric triggers (e.g., wildfire evacuation alerts) can automatically issue micro‑payments for rapid relief.

As payment speed increases, exposure to first‑party fraud, mule accounts (used to illegally transfer or hide money), and account takeovers also rises. Leading carriers are moving fraud controls earlier in the claims lifecycle, screening identity, devices, and payment instruments before funds are released.

Together, these shifts compress cycle times, reduce rework, and lower expense ratios while closing files faster—from weeks to hours in low-complexity cases. For customers without use of their vehicle or dealing with a flooded basement, clarity matters. Proactive communication and predictable payments reduce stress at the moment reassurance is needed most.

2. Open insurance and interoperability

Claims capabilities are increasingly orchestrated across ecosystems rather than owned end‑to‑end. Standards such as ACORD and ISO (policy and claims data), FHIR and HL7 (health data), real‑time payment rails, and verifiable digital identity are enabling interoperability between carriers, service providers, and partners.

Where privacy is respected and value is clear, Deloitte’s most recent insurance consumer survey indicates consumers are willing to share data. Digital marketplaces are emerging to route work to repairers, contractors, and clinics based on cost, quality, proximity, availability, and risk. Interoperability also enables faster sharing of information for prevention, detection, and mitigation (i.e., IoT sensors, telematics) as well as fraud, waste, and abuse signals—helping identify repeat actors and emerging typologies earlier.

For policyholders, this means faster access to trusted services without repeatedly re‑submitting the same information, while carriers can play a bigger role in orchestrating partners to protect and support customers.

3. Composable, cloud‑native claims platforms

Many carriers have modernized core systems—but what they do next will determine competitiveness. Claims leaders are unifying data models, embedding rules in configurable decision engines, and operationalizing machine learning, while decomposing monolithic platforms into modular, cloud‑native services linked through APIs and real‑time data feeds.

This allows key controls—such as identity resolution and fraud risk scoring—to move upstream and be applied consistently across first notice of loss (FNOL), servicing, payments, and recovery. It also provides the business with greater agility to respond to emerging loss trends without prohibitive costs. The result is reduced leakage, less late‑stage friction, and more timely reactions to emerging trends and technology.

4. Surge‑ready claims for a volatile world

Volatility is the new baseline. Carriers face more frequent severe weather events and supply‑chain shocks. In response, claims functions are becoming surge‑ready—using cloud platforms and AI-first service delivery models to scale capacity, adopting virtual adjusting as standard, and applying automated triage informed by geospatial prioritization.

Risk thresholds and automation decisions adjust in real time to rising volumes, focusing capacity on customer‑critical moments and the riskiest losses. Controls are shifting from late, rule‑based checks to layered defenses embedded earlier in workflows. Leading carriers are partnering with vendors to do risk intervention in real time to mitigate wildfire and flood losses.

Surge readiness ensures customers are better protected and aren’t left waiting when entire communities are impacted—mitigating losses and delivering faster responses without sacrificing quality, cost, or control.

5. AI‑native claims processes

Claims processes are becoming AI‑native, with AI embedded directly into workflows and supported by appropriate human oversight. Adjusters increasingly use large language model (LLM) copilots to support coverage and liability decisions, recommend treatment plans, source parts, and identify next best actions. Insurers are selectively exposing AI to customers through voice and chatbots while strengthening control frameworks to manage risk and outcomes. Leading insurers are fundamentally re‑engineering claims, embedding AI across the value chain to redesign workflows, orchestrate interactions, and drive faster, more predictable loss settlement.

Computer vision assesses photos and video to estimate severity and recommend repair pathways, while aerial imagery enables remote assessments at scale during catastrophic events. Over time, simple, low‑severity claims—such as no‑injury auto losses or straightforward property damage—can flow straight through to payment, with human oversight rather than manual handling.

Graph‑based AI detects fraud by mapping relationships across claimants, vehicles, properties, devices, service providers, and payment instruments. Causal AI identifies true drivers of claim severity, while media forensics and synthetic media detection help authenticate images and documentation.

Together, these capabilities reduce handling costs and cycle times, improve consistency, and lower loss ratios. Customers benefit from faster resolution of simple claims and more thoughtful handling of complex ones, while adjusters gain decision support that enhances—rather than replaces—their expertise.

6. New talent models for the AI‑native era

Insurance roles are evolving rapidly. Adjusters are focusing on complex claims, negotiation, and settlement strategy, while routine work is handled by AI. New roles are emerging, including AI risk and controls leads and model operations analysts. Organizations need to seek out and embed talent that supports AI initiatives within their business lines.

Leading carriers treat talent strategy as business strategy—managing knowledge as an asset through playbooks, decision trees, and case libraries that power AI copilots and accelerate onboarding. Skill‑based hiring, simulations, remote coaching, and emeritus networks help build capacity and resilience.

Customers benefit from experienced professionals spending time where empathy and judgment matter most. Employees gain more meaningful, sustainable roles.

Is your organization prepared to lead?

Change is coming for Canada’s P&C insurers. Harnessing AI and cloud to simply improve existing claims processes won’t be enough. True leaders are re‑engineering workflows, reimagining talent, and deploying AI at scale—with the right guardrails.

Deloitte brings deep insurance experience and proven transformation capabilities to help you understand what’s changing and build a roadmap to stay competitive and future‑ready. To learn more, contact one of our team members below.