Claims in the Digital Age: The Canadian Market Outlook

The role of technology is increasing in claims management. In PartnerRe’s 2025 Canadian Life Claims Survey, 15 insurers across Canada shared how they are navigating this evolving landscape and responding to new challenges and opportunities. From digital tools, artificial intelligence and operational challenges, our survey sheds light on where Canadian life insurers are focusing their efforts.

Guy Vallières, AVP Claims, North American Life at PartnerRe, shares the key themes from this survey, offering a glimpse into the direction Canadian industry leaders are heading as they embrace technology to reshape claims management.

Why are insurers investing so heavily in technology?

Insurers are facing mounting pressure from legacy systems, talent shortages, and rising operational costs. Many are making unprecedented investments in technology to streamline operations, reduce errors, and stay competitive. Harmonizing outdated systems is a top priority, especially as technological debt threatens long-term agility.

Despite enthusiasm, readiness remains a hurdle. Many organizations are caught between outdated systems and ambitious modernization goals. Outsourcing also presents challenges, especially when third-party platforms lag behind in tech capabilities.

How is the role of claims evolving within insurance companies?

Claims departments are increasingly being recognized as strategic drivers rather than purely operational units. Once viewed as back-office functions, they are now central to customer experience, retention and competitive differentiation. Larger insurers are leveraging scale and data to optimize their claims processes, while smaller players are capitalizing on responsiveness in decision-making. The visibility and structure of claims teams within organizations are also shaping how prominently they feature in technology planning, with many insurers prioritizing digital transformation and automation in this space.

What key technology trends were identified?

Five key trends emerged from the survey, offering insight into how life insurers are approaching the future of claims:

• Foundations for Modernization: Insurers are laying groundwork for tech upgrades by standardizing processes and preparing internal systems for transformation.
• Automation: Insurers are pursuing express claims, optical character recognition and direct deposit to improve efficiency, accuracy, and customer experience.
• Decision Support & Knowledge Retention: Tools are being explored to guide decisions, ensure compliance, and preserve institutional knowledge.
• Data Mining: Insurers want better access to data to analyze trends and optimize claims processes. APIs and self-service tools help bridge gaps between systems.
• Artificial Intelligence (AI): AI is being used for document summarization, fraud detection, and predictive modeling. While adoption is still early, larger insurers are positioning themselves as leaders by hiring AI specialists and piloting advanced applications.

Conclusion

Canadian life insurers are now seeing claims as a strategic advantage, not just an operational necessity. By investing in modernization, automation, and AI, they are improving their processes and customer experiences. As a leading global life reinsurer, we continuously monitor emerging trends and practices in the claims space and share our insights on the impacts with insurers.

For a more in-depth look at this year’s survey findings, access the full report.

Contributor

Guy Vallières, AVP Claims, North American Life

This article is for general information, education and discussion purposes only and does not in any way constitute legal or professional advice.