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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. 

Q3 2024 

Canada composite rate declines

Insurance rates in Canada declined 3% in the third quarter of 2024.

Canada third quarter 2024

Canada composite insurance rate change 

Canada property

Property insurance rates decline

Property insurance rates declined 1%.

  • Canada recently experienced four costly catastrophe (CAT) events: hail in Calgary, wildfire in Jasper, and flooding in the Toronto and Montreal areas; it remains to be seen how these events will impact insurance markets.
  • Ample capacity continued to be available, both domestically and internationally.
  • Underwriters continued to scrutinise secondary perils management.

Canada casualty

Insurer competition continues to support casualty rate decline

Casualty insurance rates decreased 4%, driven by general liability.

  • Insurers generally made available less capacity in the umbrella layers, but generally deployed more in excess layers.
  • Insurer competition continued, generally resulting in greater limits being deployed as insurers entered new classes of business/industries and were typically more willing to negotiate terms and conditions.
  • Canadian clients with US exposure continued to be affected by large jury verdicts in the US, particularly for automobile accidents, product liability, medical liability, and premises liability.
    • Canadian clients typically benefited from their ability to access Canadian insurers.
  • Insurers continued to place exclusions on per- and polyfluoroalkyl substances (PFAS); some exceptions were available.
  • Other exclusions and sub-limits included those for climate change; wildfire; failure to supply for energy, power, and utility organisations; mental anguish; concussion; sexual abuse; and biometric.
  • Significant losses and settlements — from claims related to opioids, mass shootings, vehicle collisions, non-owned auto exposures, class actions arising from PTSD, and product liability —  generally led to more restrictive policies being offered, and an increase in underwriting information requirements.

Canada financial and professional lines

Financial and professional lines rates decline

Financial and professional lines rates declined 5%.

  • The D&O market remained favourable as rates continued to decrease, although at a moderating pace.
    • Small to midsize private companies typically saw greater decreases as compared to larger private companies, which generally experienced more moderate decreases.
    • Excess insurers increasingly looked to participate lower on towers.
    • Underwriters scrutinised artificial intelligence (AI) and how it is integrated and monitored in operations.
  •     In fiduciary markets, imprudent investment choices were increasingly an underwriting concern.
    • Class action retentions and limit reductions have generally been imposed on large clients.
  • Rates for employment practices liability (EPL) insurance remained stable; underwriter concerns centred on Biometric Information Privacy Act (BIPA) claims, class action litigation, social inflation due to large jury awards, and the use of AI in an employment setting.

Cyber rates decline, coverage broadens

Cyber insurance rates decreased 1%.

  • For clients with no significant changes to exposure or program structure, rate decreases of 5% in the primary layer were observed.
  • Many clients bolstered coverage and/or reduced retentions.
  • Excess layer rate reductions were the main contributor to program savings.
    • When a primary layer renewed flat, reductions of 5% to 10% were typically available on the excess layer.
  • New capacity continued to enter the market.
  • Coverage continued to broaden, and at times included removal of coinsurance requirements and increased coverage sub-limits.
  • Insurers continued to view clients with cybersecurity improvements favourably, typically opening the possibility for lower retentions.

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

24/10/2024

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

24/10/2024

Insurance rates in the third quarter of 2024 in the US increased 3%.
Skyline of London over Tower Bridge on the Thames

Global Insurance Market Index

UK insurance rates

10/24/2024

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

Latin America and Caribbean insurance rates

Insurance rates in the third quarter of 2024 in the LAC region increased 3%.
Berlin, Germany viewed from above the Spree River.

Global Insurance Market Index

Europe insurance rates

Insurance rates in Europe were flat in the third 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 6% in the third quarter of 2024.
Shanghai skyline at night

Global Insurance Market Index

Asia insurance rates

Insurance rates in Asia declined 4% in the third quarter of 2024.
Skyscrapers in Abu Dhabi, United Arab Emirates.

Global Insurance Market Index

India, Middle East, and Africa insurance rates

10/24/2024

Insurance rates in the IMEA region decreased 2% in the third quarter of 2024.

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