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Canada Insurance Market Pricing

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

05/02/2024

Q4 2023 

Canada pricing: Casualty rates decline, with the exception of auto liability

Insurance rates in Canada were flat in the fourth quarter of 2023.

Canada fourth quarter 2023

Canada composite insurance rate change 

Canada property

Canada property market driven by CAT exposures

Property insurance rates rose 2%.

  • Ample capacity was available domestically and internationally. 
  • Increases were mainly driven by risks that were viewed by insurers as lacking focus on engineering and that had poor loss experience and/or critical catastrophe (CAT) exposures, particularly to British Columbia earthquake and US severe convective storms.
  • Some clients significantly increased retentions.
  • Certain classes of business — including recycling, forestry, food, and warehousing — faced more difficult renewals.

Canada casualty

Casualty insurance lines decrease, auto liability the exception

Casualty insurance rates decreased 1%.  

  • Overall, casualty rates decreased in the low-single digits; however, auto liability increased in the low-single digits.
    • More complex, heavy industrial, and/or energy risks, and those with significant US or transportation exposures, generally experienced higher rate increases. 
    • 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 polyfluoroalkyl substances (PFAs), climate change and wildfire, concussion, sexual abuse, and biometrics.

Canada financial and professional lines

Financial and professional lines continue to decline

Financial and professional lines rates declined 4%.

  • Competition in the public directors and officers (D&O) liability space continued; many clients realized premium savings and/or negotiated enhanced coverage.
  • While the overall employment practices liability (EPL) market stabilized in 2023, claims related to the state of Illinois’ Biometric Information Privacy Act (BIPA) were a growing insurer concern.
    • Some insurers have added BIPA claim exclusions to EPL policies, some limit the use of exclusionary language only where there is Illinois exposure, and some seek to apply exclusions more broadly.

Cyber coverage continues to broaden

Cyber insurance rates increased 3%. 

  • New capacity entered the market for both excess and primary layers; excess layer premium reductions drove total program pricing down.
  • Coverage generally continued to broaden, including removal of coinsurance requirements and increasing sub-limits for coverage enhancements. 
  • Insureds with improved cybersecurity controls were generally in a stronger position to negotiate lower retentions.

Regional analysis

City Light Trails

Global Insurance Market Index

Global Insurance Market Index

10/24/2024

The Global Insurance Market Index is our proprietary measure of global commercial insurance premium pricing change at renewal, providing insights on the world's major insurance markets.
Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

10/24/2024

Insurance rates in the third quarter of 2024 in the US increased 3%.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

10/24/2024

Insurance rates in the UK declined 5% in the third quarter of 2024.
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Global Insurance Market Index

Latin America and Caribbean insurance rates

Insurance rates in the second quarter of 2024 in the LAC region increased 4%.
Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe were flat in the third quarter of 2024.
Beautiful aerial view of the Sydney Opera house by the bay in Australia. Panoramic view.

Global Insurance Market Index

Pacific insurance rates

Insurance rates in the Pacific region declined 6% in the third quarter of 2024.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 4% in the third quarter of 2024.
Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

10/24/2024

Insurance rates in the IMEA region decreased 2% in the third quarter of 2024.