2026 Marine Market Outlook
The Canadian marine insurance market enters 2026 in a broadly competitive position, supported by strong underwriting results in recent years, expanding insurer capacity, and heightened competition across most major product lines. Buyers are benefiting from generally stable to declining rates, increased underwriting flexibility, and opportunities to enhance coverage structures. However, inflation, geopolitical risk, and loss severity continue to shape insurer behavior and risk selection.
2026 is expected to present a favorable environment for well-managed marine risks to optimize pricing, strengthen coverage terms, and enhance overall program resilience. Insureds should take advantage of current market conditions to improve limits, reduce restrictive terms, and reinvest premium savings into loss prevention initiatives, operational controls, and broader risk management programs. Strengthening these frameworks during a soft market will help position insureds more favorably when the market conditions inevitably tighten. A strategic, long-term approach to program design rather than transactional placement will remain critical to maintaining stability through future market cycles.
An exception to the current favourable Canadian marine market conditions are War Risk coverages, particularly around the Strait of Hormuz. Marine insurers continue to monitor the situation closely and, although war risk coverage generally remains available for vessels transiting the Gulf and surrounding waters, they are being subject to additional premiums, voyage-specific agreements, and enhanced underwriting scrutiny.
Additionally, Protection & Indemnity (P&I) markets are also expected to experience moderate premium firming in the 2026 policy year, with more than half of the International Group Clubs announcing general increases. Although pool claim volatility has moderated slightly since the spike observed in 2024, overall claim frequency and severity remain elevated compared to historical levels. Continued inflation, rising legal costs, and higher reinsurance expenses, combined with the long-tail nature of P&I liabilities and growing social inflation, are placing pressure on underwriting results.