Ontario’s upcoming auto insurance reforms will reshape how consumers choose accident benefits. But while parts of the industry anticipate more automation and streamlined digital journeys, the reform will also drive increased demand for human guidance, shared a broker expert at Dentons’ 2nd Annual Insurance Summit in Toronto last month.
Set to take effect in July 2026, changes to the Statutory Accident Benefits Schedule (SABS) in Ontario will make medical, rehabilitation and attendant care benefits mandatory. But all other accident benefits, including income replacement, caregiver, housekeeping, non-earner and funeral benefits, will become optional.
Colin Simpson, CEO of Insurance Brokers Association of Ontario, forecasted a shift in distribution dynamics under the new SABS system.
“The approach that, for example, the broker distribution versus the direct…will take [will differ],” he said. “There is an expectation that the directs will automate a lot of the interface with the consumer.”
Brokers will be doing it a little differently, he said. “If you look at the broker version of that, it is all [about] very personally-driven communications, touch points, access.”
Automation may assist with quoting, but consumers still show a strong preference for personal interaction when making a purchase.
“When you talk to companies that have multiple distributions, they often say there’s a high proportion — 70 and 80 [percent] — of consumers that still want to talk to a human before they push ‘buy’ when they’re buying an auto product through a direct.”
As the industry prepares for implementation, directs and brokers alike can expect to spend more time with consumers explaining coverages and the risks of removing them than they would with the current standardized auto product.
“I think this is why we’re starting to see some of the agencies trying to get more staff licensed, [because] there will be more human contact throughout these questions than you would ordinarily expect from buying the old product.”
From the broker’s point of view, however, “it will just be more of the same professional advice,” he said. “How do we help you, understanding that particular risk profile?”
Simpson says optionality will also present an opportunity for brokers to build trust through clearer touchpoints with customers.
“Taking away the sort of agnostic view. I think it’s a huge opportunity for brokers,” he says. “As insurance decisions get more complex, [consumers] need help.”
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Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.