Those following commercial premiums in Canada say commercial business rates are declining. Business and professional services insurance rates continue to slide. Only hospitality and retail services premium rate changes moved higher from one quarter to the next in 2025.

The Applied Commercial Index second quarter results from Applied Systems show year-over-year average renewal rates decreased across most commercial lines of business, while quarter-over-quarter changes were more mixed.

“Overall, the magnitude of rate increases was down across all lines relative to average premium renewals in the same quarter last year with 3.63 per cent in Q2 2025, down from 5.83 per cent in Q2 2024. All lines of business saw decreases compared to the same quarter last year,” Applied Systems states.

The business and professional services premium renewal rate change average was three per cent in the second quarter of 2025, down from the first quarter average of 3.99 per cent. In the second quarter of 2024, average premium renewal rate change was 5.99 per cent.

Hospitality and retail lines recorded the only increases. Hospitality services premium renewal rate change was up 4.53 per cent, up from 3.08 per cent in the first quarter of 2025. Retail lines changes averaged 4.62 per cent, up from 4.57 per cent.

The Marsh publication, Canada Insurance Market Rates, meanwhile, also notes declining rates. On average, they say (commercial) insurance rates in Canada declined four per cent in the second quarter of 2025.

Property insurance rates declined six per cent, they say. This, they add, reflects an increasingly competitive market. Key discussion points with clients during renewals included wildfire risks. Casualty rates declined two per cent during the same period. Wildfire is also noted in the analysis of this business line, as well: “Wildfire coverage is evolving and clients should not assume the availability of future coverage,” they warn.

By Marsh’s measure, financial and professional lines business rates declined three per cent. They note that some insurers withdrew directors and officers (D&O) liability capacity where they considered pricing inadequate. 

Finally, cyber insurance rates decreased three per cent as claims frequency remained consistent and severity decreased.