Commercial Insurance

Businesses are operating in an increasingly uncertain economic environment. Inflation, supply chain instability, labour shortages and geopolitical tensions create pressure and volatility. In this environment, managing risk and having the right insurance coverage are more important than ever.

IBC monitors these trends and works with governments and industry partners to understand the impact on the commercial insurance market. This includes, for example, raising awareness of issues such as skilled labour shortages, which can delay recovery after a loss. We also provide risk management education to help businesses plan for the unexpected.

Extreme weather is becoming more frequent and severe, and Canadian businesses are feeling the impact. Insured losses from natural disasters have grown exponentially over the decades, with 2024 marking a record of more than $9 billion. In just 10 years (2014-24), more than 87,000 businesses across Canada experienced financial losses due to severe weather. No region or sector is immune.

As the risk increases, so does the importance of preparation. Rebuilding after a loss is becoming more complex due to rising construction costs, labour shortages and delays. Without the right coverage and planning, businesses face a greater risk of underinsurance and prolonged recovery.

IBC is working with governments and stakeholders to strengthen Canada’s resilience. Our advocacy includes improving how and where we build, and investing in better infrastructure to ensure communities and businesses can better withstand and recover from severe weather.

The legal environment is evolving and increasing the cost of commercial insurance claims. A 2025 report by global law firm Dentons found evidence that several trends that have contributed to rising liability costs in the United States are also emerging in Canada. This includes more class action litigation, increased legal advertising and larger damage awards.

One key development is third-party litigation funding, in which outside investors finance lawsuits in exchange for a share of the outcome. This practice has become more common in Canada. While litigation funding is intended to help vulnerable people pursue cases they may not otherwise be able to, it is increasingly being used to generate profits for large entities. It is raising litigation costs and complexity, and not necessarily fulfilling its intended purpose of access to justice.

IBC monitors these developments  to better understand how changes in the legal environment can affect Canadian businesses and insurers. We engage with governments to promote a legal framework that supports access to justice while addressing emerging cost pressures.

As businesses become more digital, cyber attacks increase in frequency and severity. Many small and medium-sized businesses are underprepared or underinsured, leaving them vulnerable to significant financial loss.

Advances in technology, particularly AI, are changing both the nature of risk and how it is managed. Cyber criminals are using AI to create more sophisticated attacks, while businesses use it to anticipate and defend against them.

IBC supports businesses in managing cyber risk through initiatives such as Cyber Savvy Canada and its Cyber Insurance Guide, which help organizations understand cyber threats, strengthen resilience and make informed decisions about coverage. IBC also works with governments and stakeholders to promote balanced approaches to regulating emerging technologies that protect consumers while enabling responsible innovation.