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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.

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.

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the ‘Marsh Analysis’) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 24/031.