2026 Executive Outlook | Stephane Lesperance, Aon Canada

Canada’s commercial insurance market remains dynamic, but 2026 will bring a noticeable shift as competition among insurers intensifies.

Although underwriting discipline continues, carriers are becoming increasingly proactive in pursuing growth and retaining existing business. This renewed appetite is creating opportunities for clients to optimize their programs — achieving broader coverage, more favourable terms and tailored solutions that align to their risk profiles.

At the same time, shifting insurer perspectives on natural catastrophe exposure and certain higher-risk industries will continue to influence market outcomes. In particular, climate-related events will play an even greater role in shaping underwriting strategies, risk appetite and pricing models across Canada.

One defining challenge 2026 will bring — more so than 2025 — is the escalation of wildfire risk. The past year saw more than 8.9 million hectares of land burned across the country, marking the second-largest wildfire season on record and generating approximately $480 million in insured losses. Increasing frequency and severity of fire events, particularly in Saskatchewan, Manitoba and the Northwest Territories, underscore the urgent need for organizations to adapt.

Clients must enhance their resilience by assessing climate exposure, quantifying potential losses, and investing in proactive risk management and mitigation strategies. This includes re-evaluating limits and deductibles, strengthening risk control measures, and fostering deeper collaboration with insurers to make sure coverage aligns with emerging realities.

Another driver of underwriting discipline in 2026 will be the growing role of data and analytics in risk management. Organizations effectively harnessing their own data — and presenting it to insurers in actionable, digestible formats — will gain a significant advantage during renewals. From simple data visualization to advanced property schedule modelling and natural catastrophe analytics, these tools enable more informed decisions and better outcomes.

As the market evolves, success lies in aligning insurance and risk transfer strategies with core business objectives: reducing earnings volatility, ensuring continuity and protecting against disruptive loss events. No matter where clients are on their risk management journeys, 2026 offers a critical opportunity to leverage favourable market conditions and strengthen resilience in an era of accelerating change.