My bank and insurer are costing me money — and a federal report just explained why I can't easily leave

The amount we pay in extra fees is striking, but the reason why switching providers isn’t easier — and faster — is the real story.

Why switching insurance providers is harder than it should be

When you want to change insurers, you typically have to start from scratch. You resubmit your driving record, your home details, your claims history — all information your existing provider already has. That friction isn't accidental. The Competition Bureau's report found that only 18% of Canadians switched insurance providers in the last three years, even though a much larger share considered it (2).

The barrier isn't price awareness. It's data. Consumers can't easily carry their own information from one provider to another, which makes comparison-shopping slow, imprecise and — for many people — not worth the effort.

The Bureau estimated that data portability in insurance could save Canadians up to $1.57 billion in direct monetary savings from switching to less expensive plans, and another $2.26 billion in value from the time saved — roughly five hours per household per year spent researching and switching providers.

That's a lot of time and money left on the table because moving your information between companies is harder than it should be.

What data portability actually means — and why it matters for your premiums

Data portability is the idea that consumers should be able to take their personal financial data — claims history, driving records, transaction and banking history — and share it directly with a competing provider. Think of it like phone number portability: Before that existed, changing your mobile carrier meant giving up your number. Now you can switch in an afternoon and keep everything.

Acting Commissioner of Competition Jeanne Pratt, speaking at the Open Banking Expo Canada in March 2026, described affordability as the destination and competition as "the vehicle that gets us there" — particularly in the financial sector (3).

While the Competition Bureau's study, titled Your Data, Your Control, used insurance as its test case, the Bureau authors made it clear: This friction and these costs exist elsewhere. The Bureau’s analysis suggests that the potential savings and benefits from enabling data portability across the broader Canadian economy could be much greater.

And to be clear, other countries are already implementing financial portability. In the United Kingdom, there are now more than 12 million active users of open banking, more than 300 regulated firms and an estimated contribution of £4 billion to the U.K. economy — the result of seven years of open banking implementation (4).

Open banking is coming — but it's not here yet

The good news is that Canada has begun to transition towards open banking. The Consumer-Driven Banking Act, passed as part of federal legislation, establishes a formal open banking framework with the Bank of Canada taking oversight responsibilities. But full implementation — including the ability to move financial data between institutions automatically — is still being phased in (5).

The Competition Bureau's own research found that Canadians who understand how data portability works and its benefits are 37% more likely to adopt it, while those who see it as risky are 65% less likely to use it. That knowledge gap, the Bureau warned, means industry will need to invest in clearer consent tools and better consumer communication before the real benefits materialize (6).

In the meantime, Canadians can't wait for policy to catch up to their renewal dates.

What you can do right now, without waiting for the government

You don't need open banking to comparison-shop. You need a few hours and the right tools.

For insurance

Shop your auto and home insurance manually at every renewal. Rate comparison tools, like Rates.ca, let you get quotes side by side using details you enter yourself. Ask your existing insurer for your full claims history document in writing — you're entitled to it, and it can speed up the process with a new provider. Also, consider bundling home and auto insurance, where possible, to access deeper discounts.

For banking

The Financial Consumer Agency of Canada (FCAC), a federal agency that regulates and protects the rights of bank consumers, has mandated processes to help Canadians transfer their accounts. Most financial institutions have processes to help you manage a transfer, which may include arranging for your old institution to move all pre-authorized debits to your new account. Keep both accounts open for at least four to six weeks during the transition to avoid missed payments. Plus, don’t forget to update your direct deposit information with the Canada Revenue Agency (CRA). Do through your CRA online account and the update takes effect the next business day — though some processing timelines may take longer depending on the method used.

If you’re tired of paying fees to bank, consider a no-fee chequing account, for day-to-day banking, and a no-fee high interest savings account.