What Trudeau resignation means for P&C industry

Canada’s property and casualty insurance industry leaders say their non-partisan approach to lobbying means it’s business as usual after Prime Minister Justin Trudeau today announced his intention to resign after the governing Liberal party chooses a new leader.

“By their nature, minority Parliaments always carry elements of uncertainty and instability,” Insurance Brokers Association of Canada (IBAC) CEO Peter Braid says in an email to Canadian Underwriter. “Given the political events in recent weeks and months, the announcement from the Prime Minister to both prorogue Parliament and step down following a leadership race are not unexpected.

“One of the reasons IBAC’s advocacy efforts have been so effective over many decades is because we take a non-partisan approach and connect with Members of Parliament from all parties. This process will continue regardless of the Prime Minister’s announcement. Successful advocacy requires constant work over the short, medium and long-term.”

In the meantime, the new session of Parliament has been prorogued (suspended) until Mar. 24, Trudeau announced in a press conference this morning.

The governing party has been in turmoil since former Liberal finance minister and deputy prime minister Chrystia Freeland resigned in mid-December, citing differences with Trudeau over financing strategy and priorities.

Since Freeland’s resignation, opposition parties have been vocal about introducing a non-confidence motion at the earliest opportunity, essentially triggering an early election. The next federal election is currently scheduled for no later than Oct. 20, 2025.

For months, Trudeau has been under pressure from several senior party members to quit as prime minister. Today, he announced he will do just that.

“I’m a fighter. Every bone in my body has always told me to fight because I care deeply about Canadians. I care deeply about this country, and I will always be motivated by what is in the best interest of Canadians,” Trudeau told media on Jan. 6. “And the fact is, despite best efforts to work through it, Parliament has been paralyzed for months after what has been the longest session of a minority Parliament in Canadian history.”

Over the winter break, Trudeau reflected on the future course of his career. And after consulting with his family, he said, “I intend to resign as party leader as prime minister, after the party selects its next leader through a robust, nationwide competitive process….

“This country deserves a real choice in the next election, and it has become clear to me that if I’m having to fight internal battles, I cannot be the best option in that election.”

Also in the news: Thousands without power due to winter storm hitting Newfoundland and Labrador

With the temporary suspension of Parliament until March, several important P&C insurance industry files remain open.

In particular, after a year some industry experts said could result in nearly $9 billion in natural catastrophe damage, insurers are looking to advance files on severe weather events, resilient infrastructure, a national flood insurance program for high-risk households, and emergency preparedness.

But “the proroguing of the House of Commons and Parliament ultimately has relatively modest impact on our work, because we’ve been preparing for it for a while,” Jason Clark, Insurance Bureau of Canada’s national director of climate change advocacy, tells Canadian Underwriter in an interview.

“We have been preparing for a natural level of uncertainty in this year with the fixed [Oct. 20] Election Day, by engaging both with the federal government and with opposition parties throughout this entire Parliament. We knew Canadians would go to the polls in 2025. There was always a question of what that timing would be….

“We’ve been engaging across party lines, engaging with the government, engaging with opposition parties, to highlight the issues that really matter to the industry. And frankly, we think those are pretty cross-cutting, regardless of whether you’re in government or holding government to account.”

For brokers, it’s business as usual for IBAC, Braid tells CU. Its key advocacy priorities include maintaining the Bank Act‘s restrictions against banks selling insurance at point of sale, promoting climate change resilience, reducing auto theft and protecting Canadians from cyber risk.

“While prorogation suspends Parliament and may temporarily delay certain initiatives, brokers can still effectively advocate and meet with their MPs in their ridings,” Braid said. “And when an election comes sometime this year, brokers will have the opportunity to convey our collective priorities to all candidates during the campaign.

“As we do with every federal election, we will also reach out to each of the major political parties to secure commitments on our key issues.”

 

Photo Credit: Prime Minister Justin Trudeau makes an announcement outside Rideau Cottage in Ottawa on Monday, Jan.6, 2025. THE CANADIAN PRESS/Adrian Wyld