The silent shift reshaping the insurance business

When you’ve been in this industry long enough, you start to notice patterns.

Where money moves, where influence shifts, and where the next few years are really headed.

And lately, there’s been a quiet but massive shift happening right under everyone’s nose.

It’s not about new products.

It’s not about new tax laws.

It’s about who controls the client relationship  and who’s being invited back into the room.

Let me explain.

For years, insurance carriers have been pouring money and resources into investment advisory channels.

And I get it.

It makes perfect sense from their point of view.

Think about it: investment advisors manage the majority of the assets in Canada.

They already have the client relationships, they already see the net worth statements, and they already control the cash flow.

And because many of them historically haven’t done much insurance, there’s a huge untapped opportunity.

Their clients have money.

They have tax liabilities.

They need estate planning.

So the carriers went where the money already sits.

If you’re an insurance-focused advisor, maybe your bread and butter is life insurance, seg funds, or advanced planning, you’ve probably felt this shift over the last five years.

You’ve watched carriers pull resources away from the traditional life distribution channel.

You’ve seen the product specialists, the advanced case teams, even some of the marketing budgets migrate toward the investment channel.

And quietly, a lot of insurance brokers have been wondering:

“Are we becoming obsolete?”

The answer, surprisingly, is no.

In fact, the pendulum is starting to swing back and this time, it’s swinging toward you.

Here’s what I mean.

While insurance carriers were busy arming investment advisors with the tools and training to sell insurance, something interesting started happening in the background.

Portfolio managers, the discretionary ones, the registered PMs who manage large private pools and portfolios, began to realize that they could fill the same gap in reverse.

They started building partnerships with insurance advisors.

And this changes everything.

If you’ve never worked with a discretionary portfolio manager, here’s how it works in plain English:

They have full control over client assets, can access private investments, infrastructure funds, and alternative strategies, and they can offer it all at an institutional cost.

Think private wealth, without the big bank bureaucracy.

Now here’s the kicker.

These PMs are actively approaching insurance advisors and saying:

“Hey, you already have the clients. You already understand their needs. Why don’t we manage their money for you?”

You stay as the lead advisor.

You still earn your fee.

They handle the investments.

It’s collaborative.

It’s seamless.

And it completely changes the game.

Because for the first time, insurance advisors can actually compete for high-net-worth clients on even footing with the investment houses.

Historically, that wasn’t possible.

You could pitch a brilliant estate freeze or corporate planning strategy, but when the client asked about investment options, your toolkit was limited to seg funds and mutual funds.

And those clients, the ones sitting with $3 million in their holding company or $5 million in personal non-registered assets, they were never going to move their money.

They liked their private managers.

They liked their performance reports.

They liked the illusion of exclusivity.

So you’d win the insurance discussion, but lose the relationship.

Now?

You can win both.

By bringing in a PM as a partner, you can offer the same institutional investment experience plus the advanced tax and insurance planning that those investment advisors rarely touch.

That’s the part nobody’s talking about yet.

This shift is quietly flattening the playing field.

Where investment advisors used to have the upper hand, control of assets, access to wealthier clients, lower fees, the new structure allows insurance advisors to match it all.

Here’s the formula:

You bring the client.

The PM brings the portfolio.

And the insurance planning stays in your control.

You’re not outsourcing the relationship.

You’re strengthening it.

Because now, you’re the person who can deliver a truly complete plan.

Think about what that means for your growth.

That client you’ve been sitting on for years, the one who loves your advice but refuses to move their assets?

Now you can move them.

That accountant who only ever refers to “investment guys”?

Now you can become that investment option, without having to become a portfolio manager yourself.

That client who’s been with their bank for 25 years?

You can actually compete.

Not with complexity.

With simplicity.

“Here’s how we can give you the same private management experience you already have, but layer on advanced insurance and tax strategies your current team isn’t even talking about.”

That’s how you win the next decade.

It’s also how the entire industry is shifting, just like AI.

Remember when everyone said AI would wipe out blue-collar jobs?

That truck drivers, warehouse workers, and factory teams would be replaced?

Turns out, it’s knowledge workers, coders, analysts, designers, who are feeling the squeeze first.

The disruption didn’t show up where everyone expected it.

Same thing here.

Everyone thought insurance advisors were going to lose ground to the investment channel.

But what’s actually happening is the opposite.

The investment-only advisors, the ones who never integrated planning, insurance, or legacy work, are the ones now exposed.

Because in a world where products are commoditized, integration wins.

Clients don’t want ten specialists.

They want one quarterback.

And for the first time, that can be you.

This is why what’s happening right now is so fascinating.

A few years ago, an insurance advisor couldn’t dream of attracting a client who had their assets managed by a private wealth firm.

Now, that same advisor can partner with a discretionary manager and provide an equal or better experience.

It’s not about replacing investment advisors.

It’s about reclaiming relevance.

It’s about being able to say, “We can manage your wealth, your risk, and your legacy, under one roof.”

And that’s what business owners, professionals, and retirees actually want.

They don’t want five meetings, ten logins, and a spreadsheet nobody understands.

They want a simple, unified plan that makes sense of it all.

When you can offer that, you’re no longer the insurance person in the corner of the plan.

You’re the plan itself.

So what do you do with this?

First, educate yourself on what’s available.

There are firms now, Newport, Kinsted, and others, that specialize in partnering with independent insurance advisors.

They do the heavy lifting on the investment side while you focus on planning, protection, and client relationships.

Second, start looking at your client base through a different lens.

Who’s sitting on dormant cash or corporate investments that could be managed more efficiently?

Who’s nearing retirement and wants simplicity?

Who’s been “stuck” with an investment firm that hasn’t evolved?

Those are your next opportunities.

And third, talk to your MGA.

Because the truth is, not every MGA is built for this shift.

Some are still trying to run the same playbook from ten years ago, products, training, compliance, repeat.

Others are investing in the future, in partnerships, technology, and advanced support.

This is where PPI comes in.

I’ll say this plainly: I’m not sharing this because I work here.

I’m sharing it because I see what’s happening on the inside.

PPI has quietly been integrating with portfolio management firms like Newport and Kinsted not to become an investment house, but to open doors for advisors.

If you’re an insurance-focused advisor who wants to keep your independence but still compete for higher-net-worth clients, this matters.

Because when your MGA builds bridges like this, you can play at the next level without giving up control.

It’s not just about partnerships, either.

While other firms are turning technology into profit centers, PPI is investing in it for the long-term, tools like Amplify (our customized version of Life Design Analysis), OneApp (a unified submission system that lets you write Manulife, Equitable, and BMO all in one application), and our Advantage program for qualifying advisors that includes access to HR consulting and growth tools.

We’re not marking up licenses or selling you subscriptions.

We’re building infrastructure so you can win bigger cases, faster.

That’s the model.

Empower advisors.

Don’t tax them.

And this next chapter, where the lines between insurance and investment blur, is exactly where that kind of support matters most.

The opportunity in front of you right now is bigger than it looks.

The industry isn’t shrinking.

It’s rebalancing.

For years, the investment channel had all the leverage.

Now, insurance advisors have a new way to get it back, not by fighting the system, but by learning how to plug into it strategically.

The advisors who understand this shift early will own their markets in five years.

The ones who wait for someone to explain it will be playing catch-up.

And the truth is, nobody’s going to explain it for you.

You have to step into it yourself.

So here’s what I’d do if I were you:

Find out which PM relationships your MGA has.

Learn how to introduce those conversations to your best clients.

And start thinking of yourself not just as an insurance advisor… but as a wealth architect.

Because the game is changing fast and this time, it’s changing in your favor.

If you want to talk about how to position yourself for it, reach out.

That’s exactly what I do with the advisors I work with at PPI every day.

We’re building the next generation of practices, ones that move fast, think holistically, and stay one step ahead of the trends everyone else is just noticing.

You don’t have to wait for permission to be part of it.

You just have to move.

Talk soon,

Andrew