A Window of Opportunity Amid Uncertainty
Canadian businesses are currently enjoying a favorable cyber insurance landscape, with rate reductions and broader coverage options marking a significant shift from the hard market conditions of recent years. According to Aon’s Fall 2025 Canadian Insurance Market Update, abundant reinsurance capacity across North America helped drive a buyer-friendly environment during the January 2025 cycle. However, insurers remain cautious, as persistent loss activity and rising claims suggest that these favorable conditions may not be sustainable long-term.
Cyber Hygiene as a Strategic Advantage
For Canadian organizations, investing in strong cybersecurity practices is more than just risk mitigation—it is a strategic advantage in securing comprehensive and affordable coverage. Aon emphasizes that businesses demonstrating robust cyber hygiene and accurately reflecting these efforts in underwriting applications are best positioned to weather future market shifts. Conversely, companies with gaps in critical controls or poor loss histories may face challenges despite the current competitive rates.
Looking Ahead: Risk Differentiation and Resilience
As the market matures, Canadian businesses are becoming more sophisticated in their approach, using cyber modeling tools to assess coverage needs and protect their financial stability. Aon reports that 25% of clients opted to purchase additional limits in 2024, signaling a proactive stance on risk management. While improvements in security controls have led to reduced loss frequency and severity, systemic and third-party risks remain under-managed. To stay ahead, Canadian firms must prioritize vendor management, assess total cyber exposure, and maintain detailed underwriting data to unlock long-term pricing stability and tailored coverage.
Original article courtesy of CanadianUnderWritier.ca.
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