Education CAE 2026 Canada Education Outlook: Risk, Resilience & Workforce Vitality

Institutions that embrace risk management are building stronger, more resilient learning environments.

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What to Expect in 2026

To pass the risk assessment, education leaders need to manage a growing list of challenges, including funding pressures, talent shortages and workforce strain. Other risk exposures from threats like cyberattacks and campus unrest must also be identified and addressed. Educational leaders with strong enterprise risk management and benefits strategies will be better positioned to build a resilient future.

Economic Viability

Vitality

Resiliency

Student-Centred Risk

Economic Viability

Higher education institutions in Canada are significantly challenged by an extreme decline in the enrolment of international students across the country. The drops are steep: International student enrolment is down 36% in universities in the Atlantic Canada region1 and 50% in universities in Quebec.2 Ontario universities are projecting a $1 billion loss in revenue between 2024 and 2025,3 and enrolment drops at universities in British Columbia have already led to job losses.4 The decline stems from changes in immigration regulations, which reduced the number of new international student visas by 35% in 2024 and by another 10% percent in 2025, year-to-date. In addition, students who are permitted to enrol could be expected to have as much as $20,000 in a bank account for living expenses, depending on the province, which may be prohibitive.5 While these cuts were driven, at least in part, by a larger concern around housing availability and affordability, the sudden drop has led to other issues across the education sector. Because lower enrolment means less revenue, these institutions now find themselves struggling financially. Many programs supported by tuition from international students will have to be downsized or eliminated unless institutions can find new ways to diversify their enrolment pipelines, increase tuition and other sources of revenue, such as workforce-aligned programs, to offset these declines. Vocational and trade-based programs are a bright spot for the sector as they experience steady growth, driven by a need for skilled labour across industries. With both federal and provincial governments investing money in vocational programs, some educational institutions are increasing the number of trade-based offerings.

Financial diversification key to easing funding pressures.

For example, several colleges across Ontario have built new facilities6 to attract a growing number of new students each year to attend vocational training programs intended to combat the labour crisis across the skilled trades.7 Educational institutions should look to these programs as areas of strategic opportunity and risk planning.

The financial pressures facing educational institutions are extending to their physical campuses. Declining enrolment has created excess facility capacity, placing added strain on facilities managers to optimize the use of existing spaces while ensuring that buildings are properly maintained. Preventing deferred maintenance has become a key priority, as postponing necessary repairs can lead to significantly higher long-term costs and increased insurance exposure. The good news is that risk and facilities managers should see some relief in insurance premiums as the property insurance market softens. Anticipated rate reductions in 2026 make it a good time to reassess property values and coverage gaps, address deferred maintenance that could lead to liability exposures and look for potential premium savings that can be reinvested into core academic or student programs.

International student enrolment is down 36% in universities in the Atlantic Canada region1 and 50% in universities in Quebec.2

Staffing will continue to present major challenges in the education sector in 2026. Over the last five years, nearly half of Canadian teachers have considered quitting their profession because of stress and burnout,8 and growing concerns about financial solvency are only making the situation worse. In fact, rising operating and labour costs were identified as organizations’ top concerns affecting their financial viability in 2026, according to the HUB International 2026 Profitability & Resiliency Executive Survey,9 underscoring how these growing labour challenges are having a broader impact on an institution’s ability to operate. Those that double down on wellbeing and benefits programs are not just helping teachers on a personal level — they’re strengthening retention, reputation and performance. Although salaries have not kept pace with inflation, increasing them will be difficult since more than half of public-school budgets are already devoted to payroll.10 Teacher absenteeism and disability leave are on the rise and closely linked with mental health struggles.11

Managing teacher absenteeism is essential for effective workforce management, which is why building preventative health and wellness programs is critical to reducing short- and long-term absenteeism and ensuring the health and vitality of staff.

Employee wellbeing initiatives, strong benefits and financial planning resources directly correlate to improved work satisfaction and attraction and retention of teachers. Educators who feel supported in the workplace and aren’t stressed about retirement planning can and do perform better in the classroom. Offering retirement planning and financial education can help educators minimize their external financial stress while remaining focused on their students.

Better benefits programs can support the mental health and retirement needs of educators.

Vitality

Download our 2026 Education Outlook and Insurance Market Rate Report to see what to expect in the coming year.

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Several risks will continue to affect educational institutions in 2026, including cyberattacks and sexual abuse claims. Institutions that embed enterprise risk management (ERM) into their governance don’t just avoid losses, but free leadership to focus on innovation, growth and student success. Educational institutions are a major target of cyberattacks12 and are increasingly vulnerable to threats from increased artificial intelligence (AI) usage. However, the cybersecurity knowledge and coverage gap remain prevalent. The good news is that 70% of organizations reported they have either increased or plan to increase coverage limits for cyber insurance, according to the HUB International 2026 Profitability & Resiliency Executive Survey. Doing so is a strong step toward improving risk maturity. Sexual abuse claims against schools and their staff continue to grow as well, as have the costs to defend and settle them.13 This has made access to sexual abuse and molestation coverage difficult as underwriters pull back capacity and tighten up policy requirements. Institutions must ensure that they are not only deeply committed to child protection and the safety of minors on campus, but also to risk management policies, procedures and training.

Board-level engagement is critical in making these changes and decisions, as is working with your insurance broker to run comprehensive risk audits across insurance lines, from general liability to sexual abuse protections and cyber coverage.

A strong ERM program will go a long way toward staying on top of risks, especially those from sexual abuse claims. HUB’s risk services support team can assist institutions with improving governance and resilience that can help minimize the potential for a claim in the first place.

Comprehensive risk management strategies will move institutions ahead.

Resiliency

With a variety of risk factors growing, student mental health is a major concern, with 1 in 2 students saying they have a “moderate to serious” level of psychological distress.14 In addition, managing student safety risks from incidents of violence, such as active assailants or protest activities, remains a top priority, particularly as it relates to student stress and wellbeing. Though most students report feeling safe in school, 7 in 10 experienced some level of bullying over the past year, and 1 in 5 were cyberbullied.15 Since the pandemic, there has been a 77% increase in violent incidents in Ontario schools alone, leaving teachers and staff concerned about the larger school community.16 Institutions that proactively invest in student wellbeing will set themselves apart, as these issues can have an impact on student enrolment, retention and graduation rates. By tailoring staff training programs to guide students in understanding and navigating what resources are available to them, institutions

can maximize resource utilization, minimize confusion and strengthen student confidence and engagement.

Forward-looking schools are positioning themselves as safe havens for athletic and academic excellence and working to mitigate these risks by seeking expert advice and innovative risk solutions from an insurance advisor with expertise in this area. Adjusting policy structures specifically designed to safeguard against lawsuits tied to athletic injuries is a critical step in reducing an institution’s liability and protecting long-term sustainability.

Focusing on health and wellbeing to support students on campus.

Student-Centred Risk

HUB’s education specialists in insurance, risk management and employee benefits will partner with you to design a customized strategy that protects your bottom line, strengthens workforce vitality and builds resilience for 2026. Key considerations include:

Moving Your Organization Forward

An ERM strategy can help educational institutions identify exposures and ensure your institution is in the best position to respond to any situation that may arise. Work with your broker to approach risk strategically and identify gaps in your institution’s coverage.

Advance your risk maturity.

Employees expect organizational support for their health, safety and wellbeing. Schools with a benefits strategy based on personalization and quality employee experiences (QEX) will see better engagement, recruitment and retention and lower risk.

Create a personalized benefits strategy.

An incident can be devastating to your institution’s reputation. Take advantage of your broker’s and insurer’s expertise and resources if an event occurs, which can include access to legal counsel, crisis management, digital forensics and other services.

Rely on your broker and carrier in a crisis.

Consistent communication with your insurance broker will help identify and mitigate issues before your next insurance renewal and position your institution in the best light. Reviewing exposures and insurance needs at least 90 to 120 days prior to policy renewal allows your broker to find the optimal mix of coverages and rates for your educational institution’s needs.

Be transparent with your broker.

Download our 2026 Education Outlook and Insurance Market Rate Report to see what to expect in the coming year.

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Meet the Experts

About Us

HUB Education

When you partner with us, you’re at the centre of a vast network of experts who will help you reach your goals. For more information on how to manage your insurance costs, reduce your risk and take care of your employees, talk to a HUB Education insurance specialist.

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Financial diversification key to easing funding pressures.

Better benefits programs can support the mental health and retirement needs of educators.

Comprehensive risk management strategies will move institutions ahead.

Focusing on health and wellbeing to support students on campus.

Download Report

3. The Star, “Drop in international students leads Ontario universities to project $1B loss in revenues over 2 years,” October 28, 2025.

4. Global News, “Job cuts loom at B.C. post-secondary institutions due to international student visa cap,” August 27, 2025.

1. CBC, “Most N.B. universities see drop in international enrolment for 2nd year in a row,” October 19, 2025.

2. CityNews, “International student enrolment in Quebec plummets: report,” August 29, 2025.

5. University World News, “International enrolment plummets 36% in Atlantic Canada,” October 18, 2025.

6. College Trades, “Georgian College’s Centre for Skilled Trades is Getting a Major Expansion,” accessed October 19, 2025.

7. College Trades, “Humber Trades Expansion Transforms Furniture Plant into State-of-the-Art Woodworking Lab,” accessed October 19, 2025.

8. CTF-FCE, “One foot out the door: Students remain key reason why most teachers choose to stay,” July 17, 2025.

9. The HUB International 2026 Profitability & Resiliency Executive Survey polled 350 industry leaders and executives across North America on the issues facing them on profitability and resilience.

10. Fraser Institute, “Education Spending in Public Schools in Canada, 2025 Edition,” accessed October 19, 2025.

11. MacDonald Laurier Institute, “Students skipping class is nothing new, but teachers missing school is a growing problem too: Paul W. Bennett in the Hub,” November 13, 2024.

12. Canadian Center for Cybersecurity, ”National Cyber Threat Assessment 2025-2026,” accessed Oct. 21, 2025.

13. United Educators, “Large Loss Report 2025,” accessed August 3, 2025.

14. The Centre for Addiction and Mental Health, “Ontario Youth experiencing increasing levels of psychological distress and inability to cope,” August 21, 2024.

15. Children First Canada, “New Report: Vast Majority of Canadian Kids are Bullied and Don’t Feel Supported at School,” September 2, 2025.

16. Canadian Union of Public Employees, "New data confirms alarming rise in violence in Ontario schools: OSBCU demands urgent action from Ford government." August 15, 2025.

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Nearly half of Canadian teachers have considered quitting their profession because of stress and burnout.8

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Download our 2026 INSERT Outlook and Insurance Market Rate Report to see what to expect in the coming year.

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Download our 2026 INSERT Outlook and Insurance Market Rate Report to see what to expect in the coming year.

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1 in 2 students say they have a moderate to serious level of psychological distress.14

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of organizations have either increased or plan to increase coverage limits for cyber insurance.9

70%

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50%