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Digital report

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.

Q2 2024 

Canada composite rate declines

Insurance rates in Canada declined 5% in the second quarter of 2024.

Canada second quarter 2024

Canada composite insurance rate change 

Canada property

Property insurance rates decline

Property insurance rates declined 4%.

  • Ample capacity was available domestically and internationally, both from incumbents and new markets.
  • Underwriting scrutiny continued, with a focus on risk improvement and natural catastrophe aggregation management.

Canada casualty

Casualty rates decline; US exposures continue to draw scrutiny

Casualty insurance rates decreased 5%, driven by general liability. 

  • Complex, heavy industrial, energy, and risks with significant US or transportation exposures typically experienced single to low double-digit increases.
  • Large jury verdicts continued, generally in relation to US exposures for automobile liability, product liability, medical liability, and premises liability.   
  • Exclusions for per- and polyfluoroalkyl substances (PFAS) were harder to avoid.
    • Some exceptions were available under certain conditions for sudden and accidental pollution write-backs for foam used in firefighting/fire suppression; in other instances, these exceptions were limited to the manufacture and sale of PFAS.
  • Underwriters paid particular attention to opioid claims, mass shootings, large settlements for vehicle collisions, non-owned auto exposures, class actions arising from PTSD, and product liability claims.

Canada financial and professional lines

Financial and professional lines

Financial and professional lines rates declined 5%.

  • Directors and officers (D&O) liability rates declined in the 5% to 10% range, on average, with new insurers adding to a competitive market.
    • Small to midsize private companies typically saw greater decreases as compared to larger private companies, which generally experienced more moderate premium decreases.
    • Oppression claims and bankruptcy risks were among the key concerns for insurers.
  • Fiduciary rates remained stable.
  • The employment practices liability (EPL) market remained stable.
    • Underwriters focused on areas including Biometric Information Privacy Act (BIPA) claims, class action litigation, large jury awards, and the use of artificial intelligence in employment settings.

Cyber rates decline, coverage broadens

Cyber insurance rates decreased 4%.

  • New capacity and increased competition influenced excess layer premium reductions and contributed to overall program savings.
  • Coverage continued to generally broaden, including in such areas as removal of coinsurance requirements and increased coverage sub-limits.
  • Claims frequency continued to increase.