There are different reports from stakeholders in the industry, measuring premiums at the close of 2025. While their methodologies and language differ, both put numbers to a broader trend that many brokers are already aware of: Property and casualty (P&C) and commercial markets in Canada are softening.

Most recently, Applied Systems published the results of its Applied Commercial Index, showing that premiums increased on renewal across all lines it measured, but the amount premiums increased by has pulled back, dramatically in cases.

Across all lines, premiums changed 2.23 per cent on renewal, down from increases of 5.02 per cent reported in the fourth quarter of 2024. “Rate increases across all lines of business were down compared to the same quarter last year,” they write in the fourth quarter report on the company’s Canadian premium rate index results. 

Data from Marsh, meanwhile, shows that insurance rates in Canada declined seven per cent in the fourth quarter of 2025, following a three per cent decline reported in the prior quarter.   

The Canadian insights, gleaned from the Marsh Global Insurance Market Index, show property insurance rates declining eight per cent, thanks in part to capacity increases. Casualty insurance rates declined five per cent, the tenth consecutive quarter of declines, they say. Financial and professional lines rates declined five per cent. “Rates for directors and officers’ liability coverage stabilized as some insurers reduced capacity,” Marsh’s researchers add. Finally, cyber insurance rates declined nine per cent.   

Expanded capacity  

In property, Marsh’s Index report says existing and new insurers expanded capacity, thanks in part to lower reinsurance costs and intensified competition. “Insurers generally offered more favourable policy conditions to secure business amid ongoing rate pressures,” they write. “Insureds often used premium savings to enhance their coverage and reduce retentions.”  

Casualty rates, excluding auto, decreased six per cent. Marsh says Canadian clients with U.S. exposure typically faced moderate rate increases but benefitted from a number of options provided by insurers. Still, the broker reports that rising claims severity, jury verdicts and social inflation have led to higher premiums, increased attachment points and stricter underwriting, “particularly for non-owned auto and third-party hauling exposures.” Wildfire coverage is also increasingly under review annually, they say.   

In cyber coverage, Marsh reports that clients were often able to improve coverages or reduced retentions at renewal. “Excess premiums contributed to program savings with reductions of three per cent to 10 per cent common, even when primary layers renewed flat.”