Canada’s energy and power insurance market is set for notable change in 2026, driven by intensified competition and increased capacity. Insurers will need to offer clearly differentiated value propositions to compete effectively for heavily oversubscribed risks. This shift results from several factors reshaping the market landscape.
New local and foreign insurers entering Canada’s stable energy sector, along with existing insurers’ expanding capacity, have created an oversupply for most energy construction and operational risks. Additionally, major brokers can now quickly mobilize additional underwriting capacity for large or complex risks, further intensifying competition.
Insurers with deep expertise and strong client relationships will be best positioned to win and retain business in 2026. Success will depend less on price and more on nuanced policy terms, multi-line capabilities and underwriting strength.
Canadian energy risks are attractive to insurers because major claims are rarer than in other parts of the world. The sector is stable and there are growth opportunities. This has been reinforced by the Canadian federal government’s recent designation of two energy projects (one natural gas and the other nuclear) as nationally significant. Both traditional and renewable energy sectors in Canada offer compelling opportunities with distinct dynamics.
Traditional projects like oil and gas infrastructure remain important, while power generation attracts investment through initiatives such as Canada’s first nuclear small modular reactor. Renewed growth in the gas and renewables generation sectors — especially wind, solar and battery electric storage systems — is gaining momentum, driven by government incentives, climate goals and technological advances.
Energy risks are attractive due to their essential role and long-term demand, although project viability and type vary by province or territory. Compared to the U.S., Canada’s energy sector is more conservative but benefits from relatively stable energy policies, making it a promising area for growth.
What’s more, claims activity for Canadian energy risks has been low in 2025 compared to the U.S. and globally. This reflects effective risk management and supports insurer confidence, but also causes oversubscription as insurers compete to deploy capital.
During 2026, we will see intensified competition and abundant capacity coming to Canada’s energy and power insurance market. Insurers that differentiate through expertise, tailored coverage and multi-line solutions will be best positioned to capitalize on the sector’s stable growth and evolving opportunities.