Growing awareness of cybercrime is expected to support general insurance growth

Despite a slight contraction recorded in 2024, data and analytics company, GlobalData says the Canadian general insurance industry is projected to grow at a compound annual growth rate (CAGR) of six per cent, from $86.75-billion in 2024 to $115.82-billion in 2029.

They say an uptick in demand for natural catastrophe policies and growing awareness of cybercrime’s implications will support general insurance growth; economic growth in general too, is expected to support a rebound in the industry, beginning in 2025.

“GlobalData’s insurance database indicates that the general insurance industry in Canada is estimated to grow by 5.2 per cent in 2024, driven by an increase in demand for property and motor insurance that are expected to account for nearly three-fourths of the general insurance premiums in 2024,” they write.

Natural catastrophe events 

They say property insurance is the leading line of business, accounting for a 40.4 per cent share of general insurance gross written premium (GWP) in 2024. “It is expected to grow by 5.2 per cent in 2024, driven by home multi-risk and industrial multi-risk policies that account for more than 90 per cent of the GWP share.” They add that the increasing frequency of natural catastrophe events is expected to drive up premium prices, contributing to the growth of property insurance which, in turn, is expected to grow at a GAGR of 6.9 per cent between 2025 and 2029.

Automobile insurance is the second largest line discussed, accounting for a 36.3 per cent share of GWP in 2024. It is expected to grow by 4.1 per cent in 2024. They note Statistics Canada figures showing increased vehicle sales during the first nine months of 2024 – these increased 9.4 per cent from January to September. “Motor insurance is expected to grow at a CAGR of 3.7 per cent during 2025-2029,” they state.

Finally, liability insurance, the third largest line accounting for 15.3 per cent of general GWP in 2024, is expected to grow 7.5 per cent this year, supported by demand for cyber insurance policies. Between 2025 and 2029, the analytics company says liability insurance is projected to turn in a CAGR of nine per cent.