Media advisory: Canadian commercial insurance rates fall 4% in Q2 2025, marking the sixth consecutive quarterly decrease

Media advisory: Canadian commercial insurance rates fall 4% in Q2 2025, marking the sixth consecutive quarterly decrease

Media advisory

Media contact:

Amelia Woltering Amelia.woltering@mmc.com

Canadian commercial insurance rates fall 4% in Q2 2025, marking the sixth consecutive quarterly decrease

Toronto, July 24, 2025 – According to the latest Global Insurance Market Index released today by Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan (NYSE: MMC), Canadian commercial insurance rates fell 4% year over year, on average, in the second quarter of 2025 following a 3% decline in Q1 2025. Increasing insurer competition, including from new entrants, is currently the main catalyst behind rising market capacity, more favorable rates, and broader coverage options.

Other findings included:

• Property rates declined by 6% in Canada, reflecting increased competition among insurers, which has led to improved terms for some clients.
• Casualty rates decreased 2% in Canada, the eighth consecutive quarter of However, complex risks, especially in heavy industrial and energy sectors, and those with significant US and transportation exposures, typically experienced rate increases.
• Financial and professional lines rates declined by 3% in the second Some insurers withdrew directors and officers (D&O) liability capacity where they considered pricing inadequate.
• Cyber insurance rates decreased by 3%, as insurer competition and capacity remained As a result, clients took opportunities to enhance coverage, reduce retentions, and secure rate reductions.

Commenting on the report, Marc Major, Managing Director and Global Placement Leader for Canada, Marsh, said: “Mounting competition between insurers and the attractiveness of underwriting Canadian risks are providing reduced pricing and broader coverage options for Canadian organizations. However, geopolitical issues, including tariffs and cross-border conflicts, and extreme weather, from flooding to wildfires, create new challenges and uncertainties. Organizations should take this moment to work closely with Marsh to assess their exposures and create the optimal insurance program that best meets their needs and builds resilience for the risks of the future.”

Looking across the world, all global regions experienced year-over-year composite rate decreases in Q2 – of between 4% and 11% – except for the US, where the rate was flat. Q2 is the fourth consecutive global quarterly decrease following seven years of quarterly increases and is a continuation of the moderating rate trend first recorded in Q1 2021.

The Pacific and the UK regions experienced the largest composite rate decreases, at 11% and 6%, respectively. Rates declined in Asia; Latin America and the Caribbean (LAC); and India, Middle East, and Africa (IMEA) by 5%; and in Europe by 4%.

See the full Marsh Canada Insurance Market Rates report here.

About Marsh

Marsh, a business of Marsh McLennan (NYSE: MMC), is the world’s top insurance broker and risk advisor. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of over $24 billion and more than 90,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit marshmclennan.com, follow us on LinkedIn and X.