A new federal analysis is putting numbers to something brokers already see in practice: clients often stay with the same insurer, even when better options exist and the barriers behind that behaviour are costing billions.
Research from the Competition Bureau of Canada estimates that enabling data portability in insurance could save Canadians between $1.1 billion and $3.8 billion each year. The projected gains come from a mix of lower premiums and less time spent navigating the switching process.
According to the Bureau, the issue is not a lack of interest in better pricing but the effort required to move. Only 18% of Canadians switched insurance providers in the past three years, even though many more considered it.
A big reason is how much work the process still requires. Consumers often have to rebuild an application from the ground up when moving to a new insurer, even when their current provider already has the same information on file. That can mean re-submitting details tied to claims history, driving records, and home information before a quote can even be properly assessed.
The Bureau’s estimates break the lost value into two parts: up to $1.57 billion in direct savings from consumers moving to cheaper plans, and another $2.26 billion tied to time saved. The report said households spend roughly five hours a year researching and switching providers.
The proposed fix is data portability, which would allow consumers to transfer personal financial and insurance data directly to another provider. In the insurance context, that could include information such as claims records and underwriting-related details. The idea is similar to phone number portability, which made it easier for customers to change mobile carriers without losing their number.
Speaking at the Open Banking Expo Canada in March 2026, Acting Commissioner of Competition Jeanne Pratt described affordability as the goal and competition as “the vehicle that gets us there,” particularly in financial services.
Although the Bureau used insurance as its main example, it said the same problem exists elsewhere in the financial system. The broader view is that if customers can move their data more easily, providers would have to compete harder on price, service, and product value.
Other markets are further along. In the United Kingdom, open banking has grown to more than 12 million active users and over 300 regulated firms, with an estimated £4 billion contribution to the economy after seven years of implementation.
Canada has started building its own framework through the Consumer-Driven Banking Act, which sets up a formal open banking system under Bank of Canada oversight. But the full rollout, including automatic movement of financial data between institutions, is still underway.
The Bureau also found that understanding the system matters. Canadians who know how data portability works and what it can do are 37% more likely to adopt it, while those who see it as risky are 65% less likely to use it. That suggests implementation alone will not be enough; communication and consent design will also shape uptake.
There are already signs that consumer behaviour may be changing. Environics Research found that 24% of Canadians switched a financial account or product in the past year, the highest level recorded in more than 20 years.
