Canadian commercial insurance premium rates continued to rise in the first quarter of 2026, but declined from the average premium renewal rate of 3.85% in the same period last year to 1.67%, according to Applied Systems’ Applied Commercial Index™ data.
Premium renewal rate growth slowed across nearly all major commercial lines compared with the previous quarter, with one notable exception: commercial and professional services, where premium renewal rates rose to 2.43%, above the fourth-quarter 2025 average of 1.83%.
The average premium renewal rate change for construction, installation and installation services reached 1.56% during the quarter, down from the 2.52% average recorded in the fourth quarter of 2025.
For hotel services, the average change in premium renewal rates was 0.43%, down from an average of 0.96% in the fourth quarter of 2025. Real estate prices fell to 1.02% in the quarter from an average of 1.68% in the fourth quarter of 2025.
Finally, the retail services sector has an interest rate of 2.39%, which is still rising faster than the market average but is still slowing. In comparison, the average change in premium renewal rates in the fourth quarter of 2025 was 3.12%.
Steve Whitelaw, senior vice president and general manager, Canada, Applied Systems, said: “The first quarter 2026 results reflect a significant acceleration of the market weakness we have been tracking over the past several quarters, with overall renewal rates falling to 1.67%, less than half of the first quarter 2025 rate.
“The Applied Business Index provides brokers and insurers with critical market intelligence to navigate an increasingly competitive landscape. Going forward, we are pausing the publication of this report as we rethink how we deliver insights and value based on the evolving commercial lines roadmap.
