Salary growth across Canada’s insurance sector is likely to stay flat in the year ahead as rising operational costs and economic uncertainty push employers to hold the line on pay, according to Cal Jungwirth (pictured), director of permanent placement services at Robert Half in Edmonton.
Jungwirth told Insurance Business that the trend reflects a broader slowdown in wage movement across multiple industries – but that insurers face added pressure from their own rising expense base.
“We’re seeing it widespread across the economy and insurance specifically,” Jungwirth said. “Organizations have been very cautious when putting any sort of cost into their business, simply because they don’t have good clarity on what’s around the corner.”
That lack of clarity, he explained, stems from continued global economic uncertainty, with tariff threats and uneven growth in the US spilling into Canadian business sentiment. The result has been a widespread corporate focus on cost containment, extending to hiring and compensation strategies.
While companies remain cautious about payroll budgets, employees are feeling the opposite pressure. “The cost of living has quite frankly gone through the roof,” Jungwirth said, noting that many professionals are seeking higher pay simply to maintain purchasing power.
That push-and-pull – workers needing raises to offset inflation, and employers reluctant to add costs – has created a tense equilibrium in the job market. “You’ve got candidates looking to expand their buying power, and organizations trying to keep costs as low as possible,” he said.
In insurance, that dynamic is particularly acute. Beyond general inflation, the sector continues to grapple with rising claims costs, reinsurance expenses, and capital pressures that make discretionary spending more difficult. “They’re part of the macro environment, but they’re also dealing with their own cost increases,” Jungwirth said.
With salary budgets tightening, Jungwirth said many organizations are shifting focus toward non-salary incentives to attract and retain staff.
“We use the phrase 'total compensation,'” he said. “Now, when individuals (whether it's current employees or prospective employees) are considering an opportunity or looking at their existing comp package, that salary number is always going to be the first thing that they look at. And it's still going to be largely the most important thing. But there are other things that an employer could bring to the table.”
Jungwirth said employers are increasingly leaning on non-salary incentives to stay competitive, such as RRSP matching, pension plans, and enhanced health coverage.
Flexible benefits, in particular, have become a major draw – allowing employees to customize their plans based on individual needs rather than settling for a one-size-fits-all package.
He added that alternative forms of paid time off also form a growing part of the discussion. “Other things that have an impact on total compensation is vacation packages,” Jungwirth said.
While Robert Half’s 2026 Canada Salary Guide focuses primarily on finance and accounting, it also tracks trends that closely mirror conditions in the insurance sector, where financial reporting, compliance, and data-driven skills are increasingly in demand. The report shows that although salary growth remains modest overall, technical expertise and analytical capabilities continue to command premiums.
Across finance and accounting, the average year-over-year salary increase is projected at 1.8%, with sharper gains in areas where regulation and technology converge. Senior payroll roles are expected to see the highest bump at 4.1%, reflecting increased compliance demands and the need for professionals skilled in payroll technology. Financial reporting professionals are projected to see 4.0% growth, while corporate tax specialists could rise 3.6% amid ongoing regulatory complexity.
The most sought-after skills include financial reporting, technology implementation (including AI), financial modeling, leadership, and data analytics. These abilities are commanding salary premiums across sectors and are especially relevant to insurers facing heightened scrutiny around reporting and compliance.
Recruitment challenges remain widespread: 68% of finance and accounting managers report difficulty hiring and retaining specialized talent, particularly in compliance-related roles. Those shortages have caused 58% of employers to experience delays in compliance initiatives. To address the gap, 88% of managers say they plan to increase both permanent and contract hiring in 2026 to strengthen financial reporting and regulatory capacity.
