MISSISSAUGA, Ont., April 13, 2023 (GLOBE NEWSWIRE) -- Applied Systems® today announced the year-end and fourth quarter of 2022 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate change decreased across all lines relative to average premium renewals in the same quarter last year, at 8.58% in Q4 2022 compared to 9.23% in Q4 2021.
Quarter over quarter, Q4 2022 results demonstrated average renewal rate change decreases across Construction, Hospitality Services, and Retail Services. Average premium renewal rate change increased quarter over quarter for Business and Professional Services and Real Estate. Notably, in Q4 the average Construction premium renewal rate change experienced a yearly low at 9.06%.
Significant findings for 2022 include:
Business and Professional Services
- Q4 2022 premium renewal rate change average was 8.19%, up from the Q3 2022 average of 8.07%.
- In 2022, Business and Professional Services reached its highest rate change average in Q2 at 8.72% and its lowest in Q1 at 7.96%.
Construction, Erection and Installation Services
- Premium renewal rate change average was 9.06% for the quarter, down from the Q3 2022 average of 9.85%.
- Q3 2022 was the highest rate change average for Construction with 9.85% and Q4 was its lowest with 9.06%.
Hospitality Services
- Q4 2022 premium renewal rate change average was 9.08%, down from the Q3 2022 average of 10.40%.
- In 2022, Hospitality Services reached its highest rate change average in Q3 at 10.40% and its lowest in Q1 at 8.02%.
Real Estate Property
- Premium renewal rate change average was 8.23% for the quarter, up from the Q3 2022 average of 7.76%.
- Q2 was the highest rate change average for Real Estate with 8.81% and Q3 was its lowest with 7.76%.
Retail Services
- Premium renewal rate change averaged 9.19%, down relative to the Q3 2022 average of 9.53%, which was the year’s average highest rate change.
- Q1 2022 was the lowest rate change average for Retail Services with 8.59%.
“Year over year, results indicated that premium renewal rates decreased across all lines of business. However, we are seeing an increase in premium renewal rates across several lines of business quarter over quarter,” said Steve Whitelaw, senior vice president and general manager, Applied Systems Canada. “With ongoing macroeconomic uncertainty, we expect to see average premium renewal changes reflected in the index which serves as a leading indicator for brokers as they navigate renewals.”
Access the complete quarterly report here.
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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.
