Commercial insurance rates in Canada declined for the sixth consecutive quarter, according to new data from Marsh.
The brokerage’s Q2 2025 Global Insurance Market Index, released on July 24, reported a 4% year-over-year drop in average rates, following a 3% decrease in Q1.
The continued softening of the Canadian market was attributed to growing insurer competition, including the entry of new players, which has expanded market capacity and put downward pressure on pricing. Marsh said the trend has also resulted in broader coverage terms for many insureds.
Property insurance saw the largest decline among major product lines, with rates falling 6% in Q2. Marsh noted that increased competition led to more favorable conditions for some buyers.
Casualty rates decreased 2%, marking two full years of quarterly declines. However, coverage for more complex risks, particularly those in energy and industrial sectors and those with significant US exposure, continued to see upward pricing pressure.
Meanwhile, financial and professional lines recorded a 3% reduction in Q2. Marsh reported that some insurers had started to reduce capacity for directors and officers (D&O) liability, citing concerns over pricing adequacy. Cyber insurance rates also fell by 3%, as strong capacity and insurer competition enabled clients to secure improved terms, lower retentions and rate reductions.
“Mounting competition between insurers and the attractiveness of underwriting Canadian risks are providing reduced pricing and broader coverage options for Canadian organizations,” said March Major, managing director and global placement leader for Canada at Marsh.
However, he cautioned that external pressures, such as geopolitical tensions and climate-related events remain significant risk factors. Major said organizations should take advantage of current market conditions to reassess their exposures and strengthen insurance programmes.
Internationally, all regions except the US recorded composite rate decreases in Q2. The Pacific and the UK saw the most significant drops, at 11% and 6%, respectively. Rates also fell by 5% in Asia, Latin America and the Caribbean, and the IMEA (India, Middle East and Africa) region, while Europe reported a 4% decline.
The second quarter marks the fourth consecutive period of global rate reductions, extending a trend that began in early 2021 after seven years of consistent quarterly increases.
