Canada Property and Casualty Insurance Market to Grow at Over 4% CAGR by 2030, driven by Auto Insurance Demand

Mordor Intelligence has published a new report on the Canada Property and Casualty Insurance Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Introduction

Canada's property and casualty insurance market is experiencing stable and moderate growth. Covering both personal and commercial risks, the sector includes key lines such as auto, property, liability, and specialized coverage. As of 2024, the market is supported by a mature regulatory framework, widespread insurance penetration, and growing use of technology in policy management and claims. The projected compound annual growth rate (CAGR) of over 4% through 2030 highlights consistent demand across urban and regional segments.

Auto insurance continues to be the backbone of the industry, not only due to its mandatory nature in every province but also because of a large insured vehicle base and ongoing developments around telematics and usage-based insurance. Digital transformation, although gradual, is becoming a bigger influence in how products are delivered and consumed.

Report Overview: https://www.mordorintelligence.com/industry-reports/property-casualty-insurance-market-in-canada?utm_source=openpr

Key Trends

Auto Insurance Leads in Written Premiums

Auto insurance remains the dominant category in Canada's P&C insurance sector. It accounted for approximately 43% of the net written premiums in recent years. With compulsory insurance in every province and an active vehicle fleet, auto policies continue to deliver steady revenue. Provinces like British Columbia, Saskatchewan, and Manitoba operate public auto insurance systems, while others rely on competitive private insurers. This hybrid model creates a diversified risk landscape and competition in customer service, pricing, and product differentiation.

Usage-based insurance programs are growing in popularity. Customers, particularly younger drivers, are drawn to behavior-based pricing. Insurers are using telematics to gather driving data and provide incentives for safer habits. This is also helping insurers manage claim costs more efficiently.

Growth of Specialized Insurance Lines

While auto and property lines lead in volume, specialized insurance categories are becoming more significant. These include boiler and machinery, marine, aircraft, and surety & fidelity products. Together, they contribute over 7% of the total market premiums. These lines serve commercial and industrial sectors, especially in construction, logistics, and infrastructure maintenance. The growth in these sectors-driven by public investment and modernization-adds a layer of opportunity for insurance providers offering tailored coverage.

Increasing Shift Toward Digital Channels

Though the Canadian insurance landscape is still heavily reliant on agents and brokers, direct-to-consumer channels are slowly gaining traction. Consumers are using websites and mobile applications to compare, purchase, and manage policies. Digital platforms are particularly effective in personal auto and tenant insurance, where product complexity is lower. This shift is also reducing administrative costs and speeding up claims processing.

Insurers are investing in AI tools to support fraud detection and improve underwriting decisions. Smart algorithms and data analytics are being tested to enhance customer profiling and risk selection. While digital penetration is not yet dominant, the groundwork being laid today is expected to shape how Canadians interact with insurers in the coming years.

Market Segmentation

The Canadian P&C insurance market is segmented by type and distribution channel.

By Type:

Auto Insurance - Most significant, mandatory across all provinces.

Property Insurance - Includes residential and commercial real estate coverage.

Liability Insurance - Covers legal and compensation costs for third-party claims.

Specialized Lines - Covers less common areas such as marine, aviation, and equipment.

Accident & Sickness - Smaller share, overlaps with life and health insurance categories.

By Distribution Channel:

Direct Sales - Through insurer websites and call centers.

Agents & Brokers - Still the leading method for policy distribution.

Banks and Affiliated Institutions - Offering packaged insurance through existing customer bases.

Other Channels - Includes affinity partnerships and online aggregators.

Agents and brokers continue to dominate the commercial insurance segment, especially for business clients requiring custom coverage. Direct channels, on the other hand, are favored for standard products with less need for consultation.

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Key Players

The market is led by a number of well-established insurance providers. According to the report, some of the major players include:

Intact Financial Corporation - One of Canada's largest P&C insurers. Intact operates through multiple channels and offers personal, commercial, and specialty products. Its strong digital focus and broad distribution help it maintain leadership.

Aviva Canada Inc. - A subsidiary of the UK-based Aviva group. Known for its auto and home insurance offerings, Aviva also serves commercial clients. The company has been investing in digital platforms and partnerships to improve customer service.

Desjardins General Insurance Group - Part of the larger Desjardins financial group, it provides personal and business insurance, with a strong focus in Quebec and Ontario. Its cooperative model adds a community-oriented approach to service.

The Co-operators Group Limited - A Canadian-owned cooperative that offers a full suite of insurance products, including agriculture and environmental risk coverage. The group also emphasizes sustainable investing and corporate social responsibility.

TD Insurance - A bank-owned insurance arm offering bundled policies with other TD financial products. It focuses heavily on digital accessibility and affordability for retail customers.

These players operate in both personal and commercial lines and have continued to invest in digital tools, customer support systems, and product diversification. While competition is strong, regulatory support and consumer trust provide a stable environment for long-term performance.

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Conclusion

The property and casualty insurance market in Canada continues to grow at a moderate yet stable pace. Auto insurance dominates the landscape, but property, liability, and specialized lines are also expanding. The shift toward digital interaction, while gradual, is influencing how insurers communicate with policyholders and assess risks.

The market benefits from a healthy mix of public and private participants, along with a strong regulatory foundation. With increasing use of data analytics, better fraud management, and growing interest in customized policies, Canadian insurers are positioning themselves to serve a changing economy.

While challenges such as climate risks and pricing pressures remain, the overall outlook through 2030 is positive, supported by steady consumer demand and industry innovation in operations and product offerings.

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