Year-over-year average premium rates experienced variability while quarterly rate change decreased across the most commonly placed commercial lines of business
MISSISSAUGA, Ont., June 08, 2023 (GLOBE NEWSWIRE) — Applied Systems® today announced the first quarter 2023 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, rates saw an increase of 7.39% in Q1 2023, which is depressed relative to the rate increase of 8.35% in Q1 2022. Business & Professional Services, Construction, and Real Estate Services saw decreases compared to the same quarter last year while Hospitality and Retail Services saw increases compared to Q1 2022.
Quarter over quarter, Q1 2023 results showed that average renewal rate change decreased across all the most commonly placed lines of business including Business and Professional Services, Construction, Hospitality Services, Real Estate and Retail Services.
Significant findings include:
- Business and Professional Services: Q1 2023 premium renewal rate change average was 6.99%, down from the Q4 2022 average of 8.19%.
- Construction, Erection, and Installation Services: Premium renewal rate change average was 7.42% for the quarter, down from the Q4 2022 average of 9.06%.
- Hospitality Services: Q1 2023 premium renewal rate change average was 8.90%, down from the Q4 2022 average of 9.08%.
- Real Estate Property: Premium renewal rate change average was 6.83% for the quarter, down from the Q4 2022 average of 8.23%.
- Retail Services: Premium renewal rate change averaged 8.87%, down relative to the Q4 2022 average of 9.19%.
“Overall, average rate increases were still up year over year, but the pace of increase is slowing relative to 2022,” said Steve Whitelaw, senior vice president and general manager, Canada, Applied Systems. “These insights into the shifting trends in rate changes can assist in targeted messaging to customers in each of the business segments reviewed and inform brokers strategy on the most profitable lines of business to drive continued growth.”
Access the complete quarterly report.
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Applied Commercial Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Commercial Index.
About Applied Systems
Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland, and the United Kingdom. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most.
CONTACT: Courtney Rains Applied Systems 404-920-0812 [email protected]
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