In 2026, the challenge for carriers will be to balance speed with precision, by leveraging advancements in technology to increase efficiencies while simultaneously ensuring risk management insights remain consistent, data-driven and reliable in the underwriting process.

Despite economic uncertainties rooted in tariffs and trade wars, paired with two years of record catastrophic loss activity, segments of the commercial insurance market softened dramatically during 2025. That happened because Canada saw a robust increase in global reinsurance capacity and an ongoing shift towards commercial segments across the industry.

In this environment, the industry is seeing a demand for compressed timelines: there’s pressure to issue quotes quickly and underwrite aggressively to keep up with competitors. 

These market conditions bode well for certain industries and coverage lines heading into 2026. Many customers will reap the benefits of the improved underwriting performance we see in commercial lines, as insurers compete to retain and grow their books of business.

However, for segments such as hospitality or public infrastructure, securing adequate coverage remains challenging, driven by industry-level claims experience, natural catastrophes and increased property values.

Brokers are reporting a growing need to support businesses in critical, complex industries, ranging from heavy manufacturing and farming to long-haul trucking and public entities. Commercial accounts require solutions demanding an out-of-the-box approach. We’ve adopted this into our business practices to understand the nuances of these entities and underwrite them based on their unique merits, rather than categorizing them as a general class. As a result, we’re able to find solutions for risks from which many carriers will shy away.

This approach relies heavily on fostering strong carrier-broker relationships, since brokers facilitate effective information flow between insureds and commercial customers. By obtaining detailed and accurate information, brokers can help make sure both client needs and underwriting standards are met efficiently in an increasingly fast-paced market.

Despite increased market capacity, what remains unsolved moving into next year is the persistent challenge of finding coverage solutions for regions affected by natural catastrophes. These challenges underscore the need for innovative, customized solutions. Insurers are beginning to explore new approaches and engage with the government in discussions around new programs and initiatives to mitigate these risks effectively. Collaboration across all sectors will be key, as there’s no one-size-fits-all answer. Next year, we will be working with stakeholders to build our collective resilience against natural catastrophes.

Prevention and risk management are important for managing the loss experience of any commercial risk. They are essential for businesses with complex risk profiles and must remain top of mind, even in competitive market conditions. Carriers need to work with their brokers and customers to implement early, proactive risk management strategies to bolster safe, resilient companies and communities.

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