Canada’s insurance market remains characterized by abundant capacity and relatively low volatility compared to other jurisdictions, according to Marc Major (pictured), global placement leader at Marsh Canada. He says the current environment continues to offer buyers a wide range of options and stable conditions for deploying capital.
Major describes the Canadian insurance marketplace as “ripe with capacity,” noting that insurers are actively competing for business and that buyers have room to shop around. There is “lots of insurance available” and “plenty of partners to dance with” for organizations seeking the right fit for their risk profile, he says.
He attributes this to the amount of capital that has flowed into the Canadian insurance sector, indicating sustained interest from carriers and investors. In his view, the Canadian market is “an ideal” one from a risk perspective, with fewer sharp swings than are seen in some other regions.
While Major cautions that true predictability is not possible, he says there is less volatility in the Canadian landscape, which supports greater confidence in where insurers and buyers allocate capital.
Major says several market signals support his view of abundant capacity. As an active participant in the market, he points to “new capital coming in” from multiple directions, including private equity backing new capacity through managing general agents (MGAs) and institutional investors taking positions in brokers and insurers. He also notes ongoing acquisitions of individual carriers as another indicator of investor appetite for the Canadian sector.
Another trend he highlights is continued downward pressure on pricing. As insurers compete for business, Major says he is seeing sustained rate softening across accounts, consistent with a market where the supply of capacity exceeds demand.
Market engagement with clients is also intensifying. Major reports frequent approaches from insurers interested in taking on business currently placed elsewhere, seeking opportunities to demonstrate their capabilities and win a share of existing accounts. That level of activity, he says, reinforces the picture of a market where “lots of people” are competing for the same piece of the pie, underscoring the high level of available capacity.
Looking ahead, Major expects the current dynamics to persist over the near term. His baseline scenario for the remainder of 2026 is a “pretty consistent competitive pricing environment,” underpinned by the capital that has accumulated in the market over the past several years.
He notes that the last two underwriting years have been sufficiently profitable to give carriers a buffer against potential shocks. “I think the past two years built up enough confidence and enough capital where if we are to have disastrous, hazardous events throughout 2026, carriers will be absorbed by what they’ve earned in prior years,” he said.
Reinsurers, in particular, appear to be operating from a position of strength. Major points to their recent performance as a key factor in today’s conditions. “The reinsurance market, their results for the past two years speak for themselves,” he said, adding that the focus now is on generating incremental growth rather than simply repairing balance sheets. That shift in priority is contributing to an “aggressiveness to go after new accounts, new business, new lines of cover,” both with existing insureds and new clients.
In such an environment, pricing pressure is likely to continue. Major does not foresee an immediate floor being reached so long as capital remains plentiful and carriers are intent on expanding their books. This has direct implications for which insurers will fare better or worse over the course of the year.
Asked who might emerge as “winners” or “losers” under this baseline scenario, Major says the distinction will hinge largely on pricing expectations and willingness to adapt. “Those who are a little bit stubborn and think that we’ve reached the bottom, I think, will be the losers, unfortunately,” he said. With “that much capital” still in the system, he expects pricing to “continue to have this momentum” on the downside.
At the same time, he stresses that price is not the only consideration for clients or brokers, and that coverage quality and protection remain central. From a market standpoint, however, he believes the carriers that recognize there is still room for rates to move will be better positioned. “Markets will be able to distinguish themselves if they are able to absorb and understand and recognize that we haven’t reached the bottom just yet,” he said, adding that current results across the sector largely support this view.
Major does not suggest that any meaningful subset of the market is fundamentally misreading the situation. Rather, he draws a distinction between carriers that are prepared to recalibrate and those that remain more rigid in how they value their capacity. “I don’t think that there are any players that haven’t recognized that,” he said. “But I do think that there are markets that understand and appreciate that their capital does have a certain value to it and they have to make the right decisions for their business.”
That discipline can mean walking away from business in the short term, even if it puts those carriers on the “loser” side of individual competition for accounts. In Major’s view, the key is whether they can offset those missed opportunities elsewhere. “If they recognize that, then they hopefully recognize where they will win more than lose and they’ll go after that,” he said.
