Canada Property And Casualty Insurance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Canada Property And Casualty Insurance Market Analysis

The Canada property and casualty insurance market reached USD 95.76 billion in 2025 and is forecast to expand to USD 126.49 billion by 2030, reflecting a 5.73% CAGR. Growing insured losses from extreme weather, escalating auto-repair costs, and digital distribution innovation underpin this steady climb. Rising catastrophe-related payouts motivate disciplined underwriting, while embedded insurance, usage-based programs, and AI-driven claim automation open fresh premium pools. Regulatory revisions such as OSFI’s 2025 reinsurance guidance and the IFRS 17 capital framework sharpen risk selection. Consolidation accelerates as mid-tier carriers scale to compete with Intact Financial Corporation’s multi-brand leadership. Together, these elements strengthen the Canada property and casualty insurance market against macroeconomic headwinds.

Canada Property And Casualty Insurance Market Trends and Insights

Increasing frequency & severity of climate-driven catastrophes

Canada logged USD 6.29 billion in insured losses in 2024, triple the 2023 level and the highest on record. Wildfires, floods, and hailstorms have raised personal property claims by 115% since 2019, and reinsurers are reassessing aggregate capacity for wildfire-exposed regions. British Columbia and Alberta face the greatest exposure, prompting price firming and tighter underwriting. The Insurance Bureau of Canada warns that continued loss severity may push some zones toward coverage scarcity, mirroring the insurance retrenchment seen in California. These pressures intensify capital requirements and support premium growth within the Canadian property and casualty insurance market.

Escalating auto-repair costs & theft boosting premiums

Vehicle repair expenses climbed 22.3% between December 2019 and December 2024, while used vehicle prices jumped 82.2% over the same period. Ontario’s comprehensive claims ratio peaked at 190% in 2023, fueled by theft rings and severe weather. Average personal auto premiums rose 9.6% year-over-year by mid-2024, and the Q3 2024 claims ratio sat at 90.4%, signaling shrinking underwriting margins. These dynamics underpin pricing discipline and sustain premium inflows, reinforcing the Canadian property and casualty insurance market growth outlook.

Provincial rate caps/government monopolies in auto lines

In 2024, Alberta re-imposed a 3.7% cap on personal auto premiums, restricting the pricing flexibility of insurers. This regulatory measure has prompted several carriers to scale back on new business, resulting in a tighter supply of insurance products. Additionally, it has increased reserving risks for insurers, particularly when the caps are eventually lifted, as they may face challenges in adjusting to market dynamics. Meanwhile, Quebec's unique system, which combines public bodily injury coverage with private property damage, introduces significant administrative complexities. These complexities hinder insurers' ability to implement precise, risk-based pricing models, thereby affecting operational efficiency. Such regulatory interventions are suppressing top-line growth in Canada's property and casualty insurance market. This trend is expected to persist until the industry is allowed to resume actuarially sound rate filings, enabling insurers to better align pricing with underlying risks.

Other drivers and restraints analyzed in the detailed report include:

1. Commercial-lines hard market amid inflation & liability claims
2. Embedded insurance partnerships with fintech/e-commerce
3. Rising reinsurance costs after record NatCat losses

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Auto insurance generated 37.4% of total premiums in 2024, underpinning the Canadian property and casualty insurance market size, while mandatory cover and vehicle inflation sustain volume. Comprehensive theft losses and evolving provincial reforms should prolong pricing firmness through 2027. Personal property ranks second, with wildfire-related claims raising deductibles and spurring demand for resilience upgrades. Commercial property lines confront supply-chain inflation that elevates replacement-cost valuations.

Liability classes wrestle with social inflation, prompting carriers to impose higher self-insured retentions. Specialty lines, notably cyber and marine, will expand at a 14.35% CAGR to 2030, supported by digital-economy exposure and Canada’s vast coastline. Cyber premiums soared from USD 13.3 million in 2015 to USD 407 million in 2023, yet a 153% combined ratio signals margin pressure that encourages tighter underwriting. As specialty uptake rises, the Canada property and casualty insurance market share held by core auto lines may gradually dilute, though cross-selling offsets concentration risks.

Canada Property and Casualty Insurance Market is Segmented by Line of Business (Auto, Personal, Commercial, and More), Distribution Channel (Brokers, Direct-To-Consumer, and More), End-User (Individuals & Households, Small & Medium-Sized Enterprises, and More), and Region. The Market Forecasts are Provided in Value (USD).

List of Companies Covered in this Report:

1. Intact Financial Corporation
2. Desjardins General Insurance Group
3. Aviva Canada
4. TD Insurance
5. The Co-operators Group
6. Wawanesa Mutual Insurance
7. RSA Canada
8. Economical / Definity Financial
9. Travelers Canada
10. Northbridge Financial
11. Sonnet Insurance
12. Chubb Insurance Canada
13. Zurich Canada
14. iA Auto & Home (Beneva)
15. Gore Mutual
16. Echelon Insurance
17. CAA Insurance
18. Berkley Canada

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support