How are things looking in Canada? GlobalData has some info on the GI market;
The Canadian general insurance industry is projected to grow at a compound annual growth rate (CAGR) of 6.0% from CAD86.75 billion ($65.12 billion) in 2024 to CAD115.82 billion ($90.07 billion) in 2029, in terms of gross written premiums (GWP), forecasts GlobalData, a leading data and analytics company.
GlobalData’s Insurance Database indicates that the general insurance industry in Canada is estimated to grow by 5.2% in 2024, driven by an increase in demand for property and motor insurance that are expected to account for nearly three-fourths of the general insurance premiums in 2024.
Sutirtha Dutta, Insurance Analyst at GlobalData, comments: “The growth in the Canadian general insurance industry is expected to contract slightly in 2024 due to a slowdown in the economy. However, an uptick in the demand for policies covering natural catastrophic (nat-cat) events and growing awareness of high financial implications from cybercrimes will support general insurance growth. The industry growth is expected to rebound from 2025 onwards, supported by a revival in economic growth.”
Property insurance is the leading line of business in the Canadian general insurance industry and is expected to account for a 40.4% share of the general insurance GWP in 2024. It is expected to grow by 5.2% in 2024, driven by home multi-risk and industrial multi-risk policies that account for more than 95% of the GWP share.
Climate change continues to exacerbate nat-cat risks in Canada, which has led to more frequent and severe weather events such as wildfires, flash floods, and storms. According to the Insurance Bureau of Canada (IBC), insured damages from flash floods reached CAD1,192 million ($883 million) in 2023, while those from wildfires reached CAD696.5 million ($940 million).
Dutta adds: “The increasing frequency of such events is expected to drive up the premium prices of these policies, contributing to the growth of property insurance, which is expected to grow at a CAGR of 6.9% during 2025-2029.”
Motor insurance is the second-largest line that is expected to account for a 36.3% share of general insurance GWP in 2024. It is expected to grow by 4.1% in 2024, driven by an increase in vehicle sales. As per Statistics Canada, vehicle sales in Canada increased by 9.4% during January-September 2024 as compared to the same period in 2023.
The sale of electric vehicles (EVs) has also shown significant growth, supported by government incentives aimed at promoting the acquisition and leasing of zero-emission vehicles (ZEVs). According to Statistics Canada, new EV registrations during H1 2024 witnessed a 45.1% increase as compared to the previous year.
Dutta continues: “Motor insurers in Canada are grappling with significant challenges related to auto theft. As per the Insurance Bureau of Canada (IBC), auto theft claims in the country reached CAD 1.5 billion ($1.1 billion) in 2023. There has been a 254% surge in claims costs compared to 2022, which will prompt insurers to increase premium prices. Motor insurance is expected to grow at a CAGR of 3.7% during 2025-29.”
Liability insurance is the third-largest line that is expected to account for a 15.3% share of general insurance GWP in 2024. It is expected to grow by 7.5% in 2024, supported by an increase in demand for cyber insurance policies. As per the Insurance Institute of Canada, the average cost of a data breach in Canada was CAD6.2 million ($4.7 million) in 2024, which highlights the financial impact of cyber incidents. Liability insurance is projected to record a CAGR of 9.0 % over 2025-29.
Financial lines, marine, aviation, and transit (MAT), and personal accident and health (PA&H) insurance lines are expected to account for the remaining 7.9% share of the general insurance GWP in 2024.
Dutta concludes: “The Canadian general insurance industry growth will be supported by the increasing demand for nat-cat policies, government initiatives to push the adoption of EVs, and the growing severity of cyber risks. Rising losses due to frequent nat-cat events and higher claim costs are expected to remain a focus area for the insurers over the next five years.”
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