What's Happening?
Mosaic Insurance has announced an increase in its cyber-risk capacity to US$25 million (C$40 million) per risk in Canada, effective January 1, 2026. This move more than doubles the previous limit of US$10
million (C$15 million) and aligns Canada with Mosaic's global capacity levels. The expansion aims to address a critical market gap and provide more flexible solutions for brokers and clients. Brian Bonkoski, Mosaic's global head of Cyber, emphasized that this step enhances the management of larger cyber risks and offers greater flexibility in program design. Ian Fraser, president & chief agent of Mosaic Insurance Services Canada, noted that Canada's cyber-insurance market has lagged behind the UK and US in terms of capacity, with most domestic carriers capped at $10 million. The increased limit is expected to close this gap, offering Canadian organizations access to more efficient protection.
Why It's Important?
The expansion of Mosaic's cyber capacity is significant as it addresses a critical gap in the Canadian cyber-insurance market, which has historically lagged behind other regions like the UK and US. By increasing the capacity, Mosaic is providing Canadian businesses with access to larger and more efficient cyber insurance programs. This move is likely to enhance the resilience of Canadian organizations against cyber threats, which are becoming increasingly sophisticated and frequent. The increased capacity also reflects a growing demand for comprehensive cyber insurance solutions, driven by the digital transformation across various industries. This development could lead to increased competitiveness in the Canadian market, encouraging other insurers to enhance their offerings.
What's Next?
With the increased capacity set to take effect in early 2026, Canadian businesses can expect more robust cyber insurance options. This may prompt other insurers in the region to reevaluate and potentially increase their own capacity limits to remain competitive. Additionally, as Mosaic continues to innovate and expand its offerings, there may be further developments in the types of coverage available, such as protection for emerging risks like those associated with GenAI and digital assets. Stakeholders, including brokers and clients, will likely monitor these changes closely to optimize their cyber risk management strategies.
