Canada

Canadian insurers are increasingly using satellite imagery and laser scanning (LiDAR) to assess individual properties' wildfire risk, as actuaries warn that wildfires are no longer following historical patterns. The shift toward predictive, property-level modelling comes as national home insurance inflation hit 4.01% year-on-year in 2026 — well above the 2.3% general inflation rate — with Alberta premiums rising 9.29%. Industry leaders warn that affordability, not capacity, may become Canada's defining insurance crisis.

Ontario is implementing significant auto insurance reforms effective July 1, 2026, making most accident benefits optional in an effort to create more personalized and competitive coverage and lower premiums for drivers who opt out of certain protections. Supporters argue the changes give consumers choice and could reduce costs, while critics warn the reforms risk leaving drivers dangerously underinsured. The overhaul is among the most consequential changes to Canada's largest auto insurance market in years.

Major Canadian insurers including Intact Financial, TD Insurance, Wawanesa, and Definity Financial are pushing homeowners to fortify their properties against wildfires and floods and urging Prime Minister Mark Carney to prioritize climate risk, amid concern that an emphasis on energy and the economy could worsen future catastrophe damage. Canadian home-insurance premiums rose about 6% last year as claims surged, even as the industry's net income climbed 56.7% in 2025. Unlike some countries, Canada's calamity-prone regions remain insurable.

The Bank of Canada held its target overnight rate steady at 2.25% on June 10, 2026, marking its fifth consecutive meeting without a change, as Governor Tiff Macklem cited the need to balance energy-driven inflation — pushed higher by the ongoing Middle East conflict — against economic weakness stemming from US trade policy uncertainty. Canadian inflation rose to 2.8% in April 2026, with the central bank projecting it will peak near 3% before gradually declining to its 2% target by early 2027.