Canadian commercial lines premium rates continued to increase in the first quarter of 2026, yet at 1.67% have declined relative to average premium renewals in the same quarter last year of 3.85%, according to Applied Systems’ Applied Commercial Index™.
On a quarter-over-quarter basis, premium renewal rate increases softened across nearly all major commercial lines, with one notable exception: Business and Professional Services, which increased to 2.43%, up from the Q4 2025 average of 1.83%.
The average premium renewal rate change for Construction, Erection, and Installation Services reached 1.56% this quarter, representing a decrease from the 2.52% average recorded in Q4 2025.
For Hospitality Services, premium renewal rate change average was 0.43%, down from the Q4 2025 average of 0.96%. Real Estate Property went down to 1.02% for the quarter, from the Q4 2025 average of 1.68%.
Finally, at 2.39% for Retail Services, rates are still rising faster than the market average, but still slowing down. Comparably, Q4 2025 premium renewal rate change average of 3.12%.
Steve Whitelaw, SVP and general manager, Canada, Applied Systems, said: “The Q1 2026 results reflect a significant acceleration of the market softening we’ve been tracking over the past several quarters, with overall renewal rates dropping to 1.67% — less than half of what we saw in Q1 2025.
“The Applied Commercial Index has provided brokers and insurers with critical market intelligence to navigate an increasingly competitive landscape. As we look ahead, we are pausing publication of this report as we reimagine how we deliver insights and value in alignment with our evolving Commercial Lines roadmap.
