Canada’s commercial insurance market is currently robust and competitive, offering customers some of the most favourable renewal pricing seen in the past five years.
Multiple insurance companies are competing for your business, no matter what province you operate in. This makes it an opportune time for businesses to address any insurance coverage gaps or underinsured risks in their existing policies or increase coverage limits against high-severity claims.
According to professional services firm Marsh LLC, commercial insurance renewal rates for all product lines in Canada declined 4% overall in the second quarter of 2025. This was the ninth straight quarter in which rates were either flat or had decreased. Commercial property insurance saw the greatest decline at -6%. Marsh noted that even insurance customers that had been exposed to significant natural catastrophes, or who have made previous claims, experienced rate reductions due to increased insurer competition.
In its most recent market update, professional services firm Aon noted that increased capacity, strong underwriting performance, and heightened competition present significant opportunities for organizations to optimize their insurance programs.
According to MSA Research, an independent, impartial analytical research firm that focuses on the Canadian insurance industry, there are now over 100 commercial insurance companies competing in the marketplace, a 10% increase from 2018.
Earlier this year, Insurance Bureau of Canada (IBC) published a “Commercial Insurance Market Update” that includes strategies businesses can use to make the most of the current competitive market conditions while continuing to improve their risk management strategies. The update also includes an analysis of the potential impact of tariffs on Canadian businesses.
To make the most of these competitive market conditions, businesses can work with their insurance professional to achieve cost savings, expand and improve coverage, and strengthen their risk profile.
For example, insurance brokers can compare quotes from multiple insurers to ensure you're getting the most competitive rate available. In some cases, when a business consolidates multiple types of policies (such as property, general liability and cyber insurance) with a single provider, they may qualify for a discount. Other strategies include increasing deductibles or locking in favourable rates for a multi-year term.
To avoid being underinsured, business owners should ensure they have an accurate replacement cost appraisal that includes all of the required variables for repairing or rebuilding their business after a loss (e.g., material and labour costs, debris removal expenses, building bylaws and extra costs related to heritage buildings).
Furthermore, businesses must never lose sight of the need to stay on top of risk management best practices. Demonstrating a commitment to safety and risk management will make your business more attractive to insurers; best in class businesses will attract the most competitive rates. This includes ongoing updates to fire protection, security and employee training. Maintaining a clean claims history can position you for better insurance options, including lower premiums and broader coverage.
An experienced, licensed insurance representative can help you navigate the options available to protect you and your business. IBC has insurance professionals who can answer general insurance questions and point you to helpful resources for specific information.
For more on business insurance coverage, visit IBC’s business insurance basics webpage and/or contact IBC’s Business Insurance Helpline at 1‑844-2ask-IBC (1-844-227-5422). In addition, you may find it useful to download IBC’s “Commercial Insurance Basics” Q&A pdf.
No matter how well you plan, operating a business comes with an element of risk and unpredictability. Your commercial insurance policy provides peace of mind, allowing you and Canada’s other entrepreneurs to do what they do best – provide the products and services their consumers want, while also creating jobs and boosting the economy.
