With economic uncertainty still rippling through global markets, Canada’s insurance industry is heading into 2026 with a mix of caution, adaptability, and what Matthew Turack (pictured), group president of insurance at CAA Club Group, describes as quiet optimism.
According to Turack, many of the pressures he anticipated a year ago – from supply chain lags to inflationary hangovers and geopolitical friction – are continuing to move through the system. None of it is surprising, he said, and none of it is over.
Turack said the momentum behind the industry’s biggest challenges goes back several years.
Lingering supply chain issues, tariff impacts, inflation, and government-policy shifts are still pushing through the economy – but on a delay. Those lag effects are now visible in underwriting results, operational costs, and consumer behaviour, and are likely to stay in motion.
“We are absolutely experiencing them,” he said. “And we do project that we’ll still see ongoing effects in 2026 and 2027.”
These pressures are not evenly distributed. Some segments are adjusting quickly; others continue to feel the strain. But the overarching environment is familiar: elevated uncertainty, uneven recovery, and a need for resilience in long-cycle risk portfolios.
Asked how he would characterize the industry’s mood heading into 2026, Turack steered away from speaking for the entire sector but made CAA’s position clear.
“We tend to be more optimistic than not,” he said.
CAA sees insurers – and especially consumer-facing brands – sitting in a strong position to help Canadians better understand risk, prepare for volatility, and benefit from timely guidance. That, he said, creates opportunity even in a tempered economy.
Education, transparency, and a more informed market are areas Turack believes will matter more over the next two years. The more Canadians understand risk, the more empowered they become – and the more effective insurers can be in helping them mitigate exposures.
Despite the economic headwinds, Turack sees potential in the current landscape. Innovation, consumer outreach, and market knowledge-building all stand out as growth paths.
“There is a tremendous number of opportunities right now,” he said. In his view, insurers and brokers are the ones positioned to guide the public through an increasingly complex blend of climate, financial, and behavioural risk.
This includes everything from advocating for safer communities to preparing households for new forms of disruption – and doing so in ways that feel accessible, not abstract.
For CAA, that philosophy translates into several broad areas of focus. Turack emphasized the organization’s commitment to strengthening community resilience, both through insurance and through its well-established advocacy role. He also highlighted the company’s emphasis on supporting employees and partners, particularly during periods of heightened uncertainty, ensuring people have stability, wellness resources, and a workplace culture that can carry them through.
This internal focus is becoming increasingly important as economic conditions shift and customer expectations evolve. Turack noted that insurers are being asked not just to respond to risk, but to help shape safer, more informed communities. That involves everything from clearer communication to stronger consumer education efforts – areas where CAA sees a growing responsibility. In his view, building trust and empowering consumers will be just as critical to the sector’s future as financial performance or technological modernization.
Sustainability is another key pillar. Turack pointed to CAA’s “A Million Little Things” initiative, which encourages small, climate-conscious actions across the organization – whether that’s choosing greener building materials or making individual changes at home. The idea, he said, is that when thousands of small decisions move in the same direction, they create meaningful long-term impact.
While the broader market grapples with slower economic momentum, Turack emphasized CAA’s belief in the importance of adaptability and long-term thinking. The question, he said, is not just how insurers weather the next wave of change – but how they emerge stronger.
“How do we evolve? How do we become more resilient? How do we thrive coming out of it?” he said. That is the mindset guiding CAA as it approaches 2026: not waiting for stability to return, but building it where possible.
