Canada

Market Regulation: Regulation occurs at both federal (OSFI) and provincial levels. Axco’s compliance monitoring focuses on the 2026 IFRS 17 post-implementation review and climate risk stress testing.

Non-Life Market Trends: Premium increases are significant in Auto and Property; Axco data confirms that the market is grappling with "secondary peril" claims from wildfires and urban flooding.

Distribution Channels: The market features a robust mix of brokers and direct writers; Axco analysis identifies an increasing presence of Managing General Agents (MGAs) in specialty and niche lines.

Key Risks & Outlook: Cyber risk is a top priority; Axco’s 2026 risk profiling identifies the Canadian mid-market as a key area for cyber-underwriting expansion.

Insurance companies: The Canadian market is made up of four types of company: local joint stock insurers, foreign branches, mutual insurers and reciprocal exchanges. Axco Navigator details there are 134 insurance companies are authorised to write business in the Canda, of which 100 operate in non-life classes and 34 in life-classes.

Insurance Statistics: Axco reports written premiums in 2024 increased by 6.5% to CAD 75,938 Mn with property the largest class of business, accounting for 42% of premiums. Insurance penetration stands at 2.44%.

Providing expert analysis, independent market insight and company data on the insurance industry.

Insurance market reports are produced following a country visit with interviews with professionals working in the sector with systematic updates to information throughout the cycle. Covering market developments, macroeconomic factors and comprehensive details of the regulatory environment including relevant taxation as well as market indicators and company statistics.

Axco’s Canada Non-Life Insurance Market Report (P&C) also comprises a detailed analysis of lines of business and sub-classes such as natural hazards, property, construction and machinery breakdown, motor, workers compensation & employers’ liability and liability.

The Life & Benefits Report for Canada includes detail on social security, healthcare, individual life assurance and pensions information as well as market statistics and life company statistics

Key Benefits

• Superior market insights
• Crucial compliance information
• Risk assessment and profitability

Information for Canada can be seen in:

Canada, the second-largest country in the world, consists of 10 provinces and three territories. Its constitution gives the provinces authority to make laws concerning education, property, the administration of justice, hospitals, municipalities and other matters of a local and private nature within the provinces, including laws relating to insurance. Accordingly, there are different local laws, regulations, and fiscal charges that insurers must comply with when transacting insurance in a particular province.

The life and non-life (P&C) market in Canada is mature and sophisticated. The latter is dominated by a few large local insurers and foreign companies from Europe and the US, with nearly half the Canadian non-life insurance industry by premium volume owned by foreign interests.

The P&C market had been competitive for several years, with rate reductions in most classes, even for risks with a poor loss record. In 2017, however, rates generally stopped falling and accounts with a bad claims experience began to be subject to modest rate increases. In the latter half of 2018 and into the first half of 2019, the market hardened significantly in some areas, particularly property, professional indemnity and directors' and officers' liability. Interest in cyber-related risks growing, but the take-up rate, whilst increasing, is still modest. Insurers and brokers see this sector as the main area of potential new business growth in the next few years.

In the life market, individual is the larger segment accounting for 80% of total written premium in 2018, with group the balancing 20%. Leading lines in the individual segment in terms of in force cover include term life insurance, followed by universal life then whole life. Disability covers are also significant and include individual income protection (disability income) and critical illness. In the group segment, annuity business dominates written premium, although group term life, group disability income and group critical illness are also significant.