Canada Insurance Market Rates

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.

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.

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.