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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.

Q4 2025

Canada insurance rates decline across all major product lines

Insurance rates in Canada declined 7% in the fourth quarter, compared to a 3% decline in the prior quarter.

Canada composite insurance rate change

Canada property

Property insurance rates decline, capacity increases

Property insurance rates declined 8%.

Existing and new insurers expanded capacity, due in part to generally lower reinsurance costs.
Increased capacity intensified competition across sectors and regions.
Insurers generally offered more favorable policy conditions to secure business amid ongoing rate pressures.
Insureds often used premium savings to enhance their coverage and reduce retentions.

Canada casualty

Casualty rates continue to decline

Overall casualty insurance rates decreased 5%, the tenth consecutive quarter of declines.

Casualty rates excluding auto decreased 6%.
Canadian clients with US exposure typically faced moderate rate increases but benefited from options from Canadian insurers.
Rising claims severity, large jury verdicts, and social inflation generally led to higher premiums, increased attachment points (from $5 million to $10 million), and stricter underwriting, particularly for non-owned auto and third-party hauling exposures.
Wildfire coverage is increasingly reviewed annually, with pricing and attachment adjustments; coverage may not be available year-to-year.
Per- and polyfluoroalkyl substances (PFAS) regulations and wildfire exposure were growing concerns for insurers, requiring insureds to clearly articulate risk mitigation efforts to aim to avoid exclusions.

Canada financial and professional lines

Financial and professional lines rates decline

Financial and professional lines rates declined 5%.

Rates for directors and officers (D&O) liability coverage stabilized as some insurers reduced capacity.
Rate reductions persisted in some program layers; insurers generally resisted further decreases following three years of steady declines.
Fiduciary litigation related to health and welfare plans had little observable impact on underwriting or rates.
Employment practices liability (EPL) rates and exposures remained stable.

Cyber rates decline amid increased capacity

Cyber insurance rates decreased 9%.

Clients often improved coverage or reduced retentions at renewal.
Excess premiums contributed to program savings, with reductions of 3% to 10% common even when primary layers renewed flat.
New entrants and existing insurers targeted new business, increasing competition and making low excess capacity more affordable.
Increased capacity spanned both excess and primary layers, supported by new product offerings from several insurers.
Coverage generally expanded, including removal of coinsurance, enhanced sub-limits, and more frequent inclusion of cybercrime sub-limits; lower retentions were typically negotiable for insureds with strong cyber controls.

Our rates reflect the segment mix of Marsh’s client portfolio.

Global Insurance Market Index

02/04/2026

The Global Insurance Market Index is our proprietary measure of global commercial insurance rate change at renewal — providing insights into the world's major insurance markets.

Aerial view of the Bay Bridge in San Francisco, CA

Global Insurance Market Index

US insurance rates

02/04/2026

Insurance rates in the US were flat in the fourth quarter.

Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

02/04/2026

Insurance rates in the UK declined 7% in the fourth quarter of 2025.

Global Insurance Market Index

Latin America and Caribbean insurance rates

Insurance rates in the region decreased 7% in the fourth quarter.

Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe declined 6% in the fourth quarter.

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 12% in the fourth quarter.

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 5% in the fourth quarter.

Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

04/02/2026

Insurance rates in the fourth quarter decreased 10% in the IMEA region.

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Canada Insurance Market Rates