A competitive market environment continues: Aon Market Update

Aon’s Fall 2025 Canadian Insurance Market Update

Toronto, ON (Sept. 15, 2025) – Aon, a leading global professional services firm, has released its Fall 2025 Canadian Insurance Market Update. Published in support of Aon’s ongoing commitment to help Canadian clients make better decisions about risk management and insurance programs, the report finds that the Canadian Property and Casualty (P&C) market is characterized by soft conditions marked by increased capacity, strong underwriting performance and heightened competition.

“These factors are driving more favourable terms and broader coverage options, as carriers prioritize client retention and seek to deliver greater value,” said Russell Quilley, head of Commercial Risk and Chief Broking Officer for Canada at Aon. “This environment presents opportunities for organizations to optimize their insurance strategies by aligning them with short- and long-term business objectives to ensure their coverage can support changing priorities and operational needs.”

Other key findings include:

• The property insurance market is resilient despite recent catastrophic losses. Increased underwriting capacity and improved profitability offer broader coverage options, but natural catastrophe-exposed properties still encounter elevated scrutiny and stricter terms.
• The cyber market continues to evolve rapidly, emphasizing robust cybersecurity and response plans. Organizations demonstrating strong controls gain better coverage and favorable pricing from insurers.
• The increasing frequency and severity of extreme weather events adds complexity to risk assessment and highlights the importance of building resilient insurance programs for future protection.
• Casualty insurance rates remain stable in Canada, with healthy competition among insurers. Favourable claims history has kept deductibles steady, but high-risk exposures may face increased rates and stricter underwriting.
• The Canadian construction insurance market is increasingly competitive, with insurers expanding capacity and prioritizing growth. Customized solutions and strong risk management differentiate clients and secure superior coverage.

Access the Fall 2025 Canadian Insurance Market Update.

Preview:

The Canadian Property & Casualty (P&C) insurance market is currently characterized by soft conditions, marked by increased capacity, strong underwriting performance, and heightened competition. These factors are driving more favourable terms and broader coverage options, as carriers prioritize client retention and seek to deliver greater value. This environment presents significant opportunities for organizations to optimize their insurance programs— whether by expanding limits, enhancing coverage, or resolving legacy challenges from previous market cycles. Advanced analytics and flexible underwriting practices are enabling more informed negotiations, while robust competition is fostering collaboration and innovative risk solutions.

Access the full Fall 2025 Canadian Insurance Market Update.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses. For more information, visit www.aon.com.

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SOURCE: Aon plc

Tags: Aon, market dynamics, Property/Casualty (P&C) insurance, report, trends