What brokers need most from insurers to handle claims crises

Insurance is a promise. If something bad happens, the P&C insurance industry will dedicate time, money and expertise to make policyholders’ lives whole again.

It’s when an insured person makes a claim that ‘the rubber hits the road.’ So, can the insurer deliver on its promise to the customer?

Increasingly, that’s the big question brokers have for insurers before placing a client’s business with a carrier.

“An important part of the broker value proposition is advocating for clients when they have a claim and making a difference when these situations occur. It is rewarding work,” says Insurance Brokers Association of Canada president Mathieu Brunet, who is also vice president of MP2B Assurance in Laval, Que.

Brokers expect to do a lot more of this advocacy work after the worst storm season in Canadian history in 2024. As natural catastrophes (NatCats) mount, brokers are focusing on whether insurers are delivering on promises to policyholders, according to the results of Canadian Underwriter’s 2025 National Broker Survey.

Almost nine out of 10 Canadian P&C insurance brokers say the ‘quality of the carrier’s claims handling’ is an important factor when considering which product to recommend to a customer.

Asked to compare factors that go into recommendations, claims handling was Number 1 in this year’s survey. Last year, policy and terms took the top spot. But the quality of claims handling has been increasingly important since the middle of the pandemic in 2022, when 81% said the same.

“Although claims service is just one of many factors that brokers consider when placing business, it’s becoming one of the most important differentiators in the market,” Brunet says. “Insurers that prioritize speed, transparency and proactive broker communication will be the ones that always stand out.”

Spinning wheels?

When it comes to serving mid-sized businesses, brokers answering the survey express concerns about spinning their wheels when it comes to communicating with insurers about a client’s claim — particularly during massive NatCats, when insurers are flooded with queries.

The P&C industry responded to 273,000 claims in 2024, a record, according to the Insurance Bureau of Canada. Over a span of less than a month, the industry dealt with more than 220,000 NatCat claims arising from four major disasters – flooding in Ontario and Quebec, a wildfire in Jasper, Alta., and a monster hailstorm in Calgary. All told, the year brought more than $8.9 billion in claims.

The prior record was 2016, when Fort McMurray, Alta., burned down in a wildfire. That year, the industry dealt with 133,000 claims, totalling $6.2 billion.

The frantic pace of advocating for clients during last year’s claims-handling frenzy showed up in CU’s survey, which asked specifically about claims service to mid-sized Canadian businesses.

Asked about six different aspects of the claims process, only ‘speed/efficiency of claim process’ got higher marks from brokers than in our 2024 survey. Another five claims process aspects received worse scores from brokers in 2025 than they did last year.

Related: Brokerage owners list top 2025 concerns

Only 46% of brokers gave insurers high marks for the ‘speed of claim payment,’ compared to 60% in 2024. Women (55%) were more likely to give insurers high marks for this than men (36%). And brokers working in firms with fewer than 20 employees (63%) were more likely to say insurers’ payment speeds met expectations, compared to mid-sized brokerages (36%) and large brokerages (49%).

The second-biggest percentage drop, from 66% last year to 56% in 2025, concerned ‘claims settlement satisfaction.’ Scores here were lower at mid-sized brokerages with 20 to 99 employees (54%) and large brokerages with more than 100 employees (55%).

The third-biggest drop has to do with the carriers’ ‘communication/transparency throughout the claims process.’ Fifty-six percent of brokers in 2024’s survey said insurers’ communication and transparency met their expectations, whereas only 48% said the same in 2025.

Brokers likely cut insurers some slack, given the sheer volume of 2024 claims.

“In high-volume scenarios, particularly when insurance companies’ processes are under pressure, reaching the adjuster responsible for a claim can be challenging,” Insurance Brokers Association of Ontario CEO Colin Simpson tells CU, when asked about the survey results.

“While not always practical, it would be valuable for insurers to provide ongoing updates on their current claims service levels. This transparency could help brokers keep policyholders informed about expected potential delays — this could be an opportunity for a broader industry initiative in the future.”