Canadian commercial insurance buyers are heading into 2027 with plenty of capacity and competitive pricing, according to Aon’s latest Canadian market update, even after a year of costly catastrophe losses.
The broker’s Canadian Insurance Market Update for Fall 2026, released on October 19, found that strong insurer and reinsurer results and abundant global capital are supporting a broadly favorable P&C market for well-managed risks.
“Capacity is ample, competition among insurers and reinsurers is strong, and pricing for well‑performing risks is flat to down across many lines,” said Russell Quilley, head of commercial risk and chief broking officer for Canada at Aon.
Quilley said buyers have more options to improve coverage and restructure their programs, but face a risk landscape that is more interconnected, volatile and harder to predict.
Aon said commercial property conditions continue to improve, with more capacity allowing broader coverage, higher limits and more flexibility for well-managed accounts. Casualty and specialty markets remain supported by strong balance sheets and competition, though social inflation and litigation trends, especially for risks with US exposure, remain a concern. Aon said risk controls, contract wording and loss history increasingly determine outcomes.
The Canadian picture mirrors Aon’s global view. In its Q2 2026 global market report, Aon said abundant capacity created soft conditions across property, casualty and cyber. Commercial auto and US umbrella were the main exceptions, with prices still rising because of adverse claims trends.
The soft market has continued despite a heavy year for catastrophe losses in Canada. Catastrophe Indices and Quantification Inc. (CatIQ) has estimated insured losses of $563 million from the September storms in southern Ontario and $442 million from the June rainfall in Montreal. Intact and Definity together reported $850 million in third-quarter catastrophe losses.
Aon said catastrophe risk in Canada is becoming more volatile, with wildfire, flood and severe convective storms happening more often. Underwriters are paying closer attention to secondary perils, data quality, valuations and mitigation. Catastrophe exposure remains a key focus in commercial property, even as overall conditions ease.
For commercial brokers, the market favors clients who can show they’re well-run. Accounts with good data, current valuations, documented mitigation and clean loss histories are likely to see flat or lower pricing, broader terms and higher limits. Those with catastrophe exposure, poor data or US liability exposure face more scrutiny.
The gap between the two is the main message for 2027 renewals. Brokers who start preparing submissions early, with up-to-date valuations, mitigation evidence and loss data, will be best placed to secure better terms while capacity lasts.
The heavy catastrophe year also raises a question the report leaves open: how long carriers can keep cutting commercial property rates if 2027 brings losses like 2026’s.
