In remarks to the Economic Club of Canada on October 20, Stephanie Zee, chief product officer at Payments Canada, outlined how the forthcoming Real-Time Rail (RTR) could accelerate insurance payouts and reduce payment processing costs. Ahead of the previously scheduled fourth-quarter 2026 launch, she described a system that will send, receive, clear and settle payments instantly, around the clock. Insurers will be able to use the RTR through their financial institutions to make emergency claims payments available immediately, avoiding delays associated with electronic transfers or cheques. Structured transaction data could also simplify premium collection and reconciliation, reducing administrative costs and improving liquidity management. Zee cited C.D. Howe Institute research estimating cumulative cost savings of CAD 5.3 billion to CAD 14.5 billion over a decade from reducing manual processing, cheque use and costs associated with deferred settlement. The research also estimates potential cumulative gross domestic product gains of CAD 16 billion over 10 years. Alongside these expected benefits, she reiterated that the RTR will launch with centralized fraud services and participant fraud mitigation requirements, including Confirmation of Payee. Recent federal legislative changes also broaden opportunities for fintech companies and smaller financial institutions to offer payment services using the infrastructure.
Payments Canada outlines insurance payment benefits and projected savings ahead of Real-Time Rail launch
Payments Canada Chief Product Officer Stephanie Zee outlined how the forthcoming Real-Time Rail could enable immediate insurance payouts and simplify premium collection and reconciliation. In remarks to the Economic Club of Canada, she cited projected economywide savings of CAD 5.3 billion to CAD 14.5 billion over a decade. The system will support instant payments around the clock and launch with participant fraud mitigation requirements, including Confirmation of Payee.