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Canada Insurance Market Rates

The Global Insurance Market Index is our proprietary measure of commercial insurance rate changes at renewal. Below are insights into the Canadian insurance market.

Q1 2024 

Canada composite rate declines

Insurance rates in Canada declined 2% in the first quarter of 2024.

Canada first quarter 2024

Canada composite insurance rate change 

Canada property

Property insurance market sees increased competition

Property insurance rates were flat.

  • Competition among insurers accelerated.
  • Ample capacity was available from both domestic and international markets.
  • Clients focusing on risk improvement and with favorable loss experience benefited from rate decreases.
  • Certain classes of business — including recycling, forestry, food, and warehousing (especially with automatic retrieval systems) — faced challenges.

Canada casualty

Casualty rates decline overall; auto liability increases

Casualty insurance rates decreased 1%. 

  • Overall, casualty rates decreased in the low-single digits; however, auto liability increased in the low-single digits.
  • Higher increases were seen, on average, for organizations with more complex risks, in energy or heavy industries, and with significant US exposure.
    • US auto claims continued to reach into umbrella and excess layers; in many cases claims costs outpaced rate increases.
  • Insurer exclusions and sub-limits were common, depending on the class of risk, for for per- and polyfluoroalkyl (PFAS) substances, climate change and wildfire, concussion, sexual abuse, and biometrics.

Canada financial and professional lines

Financial and professional lines rates continue to decline

Financial and professional lines rates declined 10%.

  • D&O rates continued to decline.
  • Underwriters remained concerned about macroeconomic issues, including banking sector challenges, labor shortage, supply chain delays, and geopolitical tensions and kept a close eye on companies’ communications with shareholders on these issues.
  • The fiduciary liability market remained challenging for companies with US plan assets due to the impacts of the increased frequency and severity of excessive fee litigation since 2020.
  • The employment practices liability (EPL) market stabilized at the end of 2023 and remained so in the first quarter.

Cyber rates decline amid increased insurer competition

Cyber insurance rates decreased 5%, driven by excess layer premium reductions.

  • New market entrants, increased capacity, and increased insurer competition in excess layers contributed to the decline.
  • The scope of cyber coverage continued to broaden, typically including removal of coinsurance requirements and increasing sub-limits for coverage enhancements.
  • Underwriters continued to look for improvements in cybersecurity controls.

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