Last week, the Competition Bureau of Canada released a landmark study estimating that a robust data portability framework in the insurance sector could save Canadians between $1.1 billion and $3.8 billion annually in time and money—and that’s just the beginning.

This finding underscores what many in fintech have long suspected: reducing friction in how consumer data moves between providers isn’t just a “nice-to-have,” it’s a catalyst for competition and innovation.

But what does this mean for Open Insurance, and why should every industry leader—from insurers to regulators and consumers—pay attention?

The Power of Portable Data in Insurance

At its simplest, data portability allows individuals to securely transfer their personal financial and insurance data from one provider to another. In practice, this means:

A customer could send their full claims history and policy information to a new insurer with the same ease as downloading a PDF.

Comparison tools could analyze real data to show personalized insurance options.

Policy renewals, underwriting, and quote generation could all become dramatically faster and more accurate.

The Competition Bureau’s report found that these improvements could create significant savings—not only from lower premiums but from reducing the time Canadians spend comparing and switching plans.

Yet despite the upside, most Canadians remain unfamiliar with data portability. The Bureau highlighted that a large portion of the population doesn’t know what it means—and many view it as risky. This disconnect is a major barrier to adoption. And as one expert recently observed: “A reform that is both obscure and feared will not be widely used.”

This insight hits at a deeper truth: the benefits of data mobility can only be unlocked when consumers understand and trust it.

Open Insurance: More Than a Buzzword

Open Insurance builds directly on the principles of open banking and data portability. It proposes an ecosystem where insurers and third-party innovators can use standardized APIs to securely access consumer consented data.

Globally, this trend is gaining traction. In the UK and Australia, frameworks like open banking and the Consumer Data Right demonstrate how interoperable data sharing boosts competition and choice. In insurance, similar principles could drastically reduce friction in:

• Policy switching
• Risk assessment and underwriting
• Claim processing and fraud detection
• Personalized product development

A recent fintech analysis notes that open banking concepts are now seen as “a blueprint for transforming insurance operations,” especially cross-carrier data sharing.

This is where data portability transitions from a regulatory nicety to an industry game-changer.

Walnut’s Perspective: Consumer Education, and Trust

At Walnut Insurance, we see two essential pillars for realizing the promise of Open Insurance in Canada:

1. Trust Is the Cornerstone of Data Mobility

The study makes clear: “Ensuring consumers trust oversight bodies and understand how their personal data is used” is vital for adoption.

At Walnut, we believe data portability frameworks must go hand-in-hand with consumer education and robust privacy standards. Too often in financial services, people feel data is “out of their control”—which fuels fear and compliance avoidance rather than empowerment.

To succeed, Canada’s policymakers and industry must collaborate on public awareness campaigns that clarify:

• What data portability actually does
• How consent works
• What protections are in place

Open Insurance isn’t just a technology project—it’s a trust building exercise.

2. Interoperability Is Innovation’s Soil

The Bureau also emphasizes interoperability—the technical ability for systems to share data smoothly and securely.

For the insurance industry, interoperability standards are crucial. Without them:

• APIs remain proprietary
• Claims data formats stay fragmented
• Third-party innovators struggle to scale

At Walnut, we’re actively exploring how interoperable standards can unlock partnerships with insurtechs and data platforms to improve customer outcomes.

A Call to Action: Education + Policy + Industry Alignment

If Canada truly wants to capture the billions in potential savings highlighted in the Bureau’s study, we need more than policy papers—we need coordinated action:

• Policymakers must finalize clear, consumer-centric data portability frameworks.
• Industry must adopt open standards and embrace innovation.
• Consumers must be educated and empowered to exercise their data rights.

Only then can we move from concept to reality—where Canadians seamlessly move their data, choose better products, and insurers innovate at pace.

The Competition Bureau’s report is a wake-up call. Now, the question is: Will the insurance industry answer it?