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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 2024

Canada insurance rates decline in all major product lines

Insurance rates in Canada declined 2% in the fourth quarter of 2024.

Canada fourth quarter 2024

Canada composite insurance rate change 

Canada property

Property insurance rates decline, capacity ample

Property insurance rates declined 3%.

  • Ample capacity led to insurer competition; clients typically secured additional coverage limits.
  • Clients with favorable risk characteristics generally benefited from above-average rate reductions, particularly from higher-rated insurers and new entrants.
  • Terms and conditions remained stable, with underwriting practices focused on managing secondary perils and specific industries like warehousing, food and beverage, and recycling.
  • Larger clients typically were offered long-term agreements (LTAs) featuring built-in rate reductions based on performance.

Canada casualty

Casualty rates decline

Casualty insurance rates decreased 2%.

  • The casualty insurance market remained competitive, with traditional insurers and new entrants seeking growth through larger limits, new business classes, and innovative products.
    • Insurers were typically more open to negotiating terms than in previous years.
  • Insurers managed limits in umbrella layers, but were increasingly willing to deploy more capacity in excess layers, often with ventilation.
    • Traditional excess insurers showed interest in lower attachments and primary layers.
  • Claims inflation remained a significant concern, particularly related to US exposures.
  • Canadian clients with US exposures generally experienced lower rate decreases than those without US exposure; however, they benefited from access to the Canadian market, which tended to offer more flexible local treaties.
  • Some insurers established minimum price per million for capacity at any attachment point, particularly in the first US$100 million, recognizing that clients were purchasing higher limits for US exposures.
  • Exclusions for per- and polyfluoroalkyl substances (PFAS) continued to be more common, with limited exceptions for sudden and accidental pollution related to foam firefighting; clients must demonstrate a commitment to transitioning away from foam-based suppression.
  • Other exclusions and sub-limits varied by risk class and included climate change, wildfire, failure to supply (energy/utilities), mental anguish, concussion, sexual abuse, and biometrics.

Canada financial and professional lines

Financial and professional lines rates decline

Financial and professional lines rates declined 3%.

  • The directors and officers (D&O) liability insurance market remained generally favorable for clients, with rates continuing to decrease, though at a moderating pace.
    • Capacity from new market entrants helped to keep rates lower.
    • Many discussions with insurers shifted toward coverage enhancements rather than rate decreases.
    • Insurers anticipated an increase in IPOs and transactional activity in 2025.
    • With limited opportunities in public D&O, insurers targeted private D&O for growth, with rates remaining generally favorable for companies seen as good risks.
  • Rate pressures in the D&O market are driving insurers to seek new business and to aim to write clients’ policies in ancillary lines.
  • Fiduciary excessive fee litigation has been a primary concern; prudence of investment choices is now emerging as a key underwriting theme.
  • Employment practices liability (EPL) rates and exposure remained stable.

Cyber rates decline, coverage improves

Cyber insurance rates decreased 3% as new capacity continued to enter the market.

  • A 5% reduction on primary layers was typical when there were no significant changes to client exposure or the program.
  • Many clients obtained enhanced coverage and reduced retentions without a correspondence premium increase.
  • Reductions in excess layer premiums were key to overall program savings, with 3% to 10% reductions common when primary layers renewed flat.
  • Coverage generally improved, with some able to remove coinsurance requirements and increase sub-limited enhancements. Insureds with improved cybersecurity controls were typically able to negotiate lower retentions.
  • Q4 2024 maintained the stability trend that began a year ago, with clients and insurers fatigued from extensive marketing during prior periods.

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

Regional analysis

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Global Insurance Market Index

Global Insurance Market Index

02/05/2025

The Global Insurance Market Index is our proprietary measure of global commercial insurance rate 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

02/05/2025

Insurance rates in the fourth quarter of 2024 in the US were flat.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

02/05/2025

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

Latin America and Caribbean insurance rates

Insurance rates in the fourth quarter of 2024 in the LAC region increased 1%.
Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe declined 2% in the fourth 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 8% in the fourth quarter of 2024.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 3% in the fourth quarter of 2024.
Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

02/05/2025

Insurance rates in the fourth quarter of 2024 increased 1% in the IMEA region.

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