The Canadian property & casualty (P&C) market remains well-capitalized and competitive, with sufficient capacity across most lines, according to Aon’s Spring 2025 Canadian Insurance Market Update.
This is despite 2024 marking the costliest year on record for insured catastrophe losses in Canada, with an estimated $9.08 billion in damage. Aon said the industry’s financial strength and recent improvements in investment returns have helped support underwriting resilience and market consistency.
“Current market conditions offer opportunities for clients to increase limits, broaden coverages, and address non-concurrency of terms from previous harder market conditions,” said Russell Quilley, head of Commercial Risk Solutions and chief broking officer for Canada at Aon.
“While competitive, the pressure for growth must be balanced with profitability and the underwriting environment remains cautious and disciplined with the same level of technical scrutiny established during the last market cycle.”
The report noted that premium adjustments over the past few years, combined with stronger investment income, have contributed to a more stable operating environment for insurers. Despite ongoing claims activity and weather-related losses, many carriers continue to report improved financial positions.
Interest from international markets, particularly from London-based insurers, remains steady. These insurers are looking to expand their presence in Canada, drawn by the market’s relative stability and the opportunity to offer additional capacity.
In the commercial property segment, the market is showing signs of softening. Capacity remains accessible, and insurer profitability is contributing to greater competition. As a result, some buyers may see opportunities for improved pricing and broader terms compared to prior renewal cycles.
Meanwhile, the casualty market presents a mixed picture. The primary market continues to favour insureds, while the excess casualty segment is experiencing increased competition, with new entrants and additional capacity applying downward pressure on rates in some areas.
The report reflects Aon’s ongoing assessment of evolving market conditions and their potential impact on insurance programmes and risk strategies in Canada.
