MISSISSAUGA, Ont., May 25, 2023 (GLOBE NEWSWIRE) -- Applied Systems® today announced the first quarter of 2023 results of the Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q1 2023, average premiums for both Personal Auto and Personal Property lines increased year over year. Quarter over quarter, premium rate change decreased for both Personal Auto and Personal Property compared to Q4 2022.
Key findings for Q4 2022 include:
- Personal Auto: In Q1 2023, the Personal Auto premium rate change increased to 5.0% versus Q1 2022. The Personal Auto premium rate change decreased to -2.2% versus Q4 2022.
- Personal Property: In Q1 2023, the Personal Property premium rate change increased to 5.1% versus Q1 2022. Personal Property decreased to -0.1% versus Q4 2022.
- Provinces: Across Personal Auto, all provinces experienced an increased rate change year over year with Alberta, Ontario, Quebec, and the Atlantic Provinces seeing 6.6%, 3.0%, 10.4%, and 7.5% respectively. Relative to Q4 2022, all provinces except Quebec experienced a decrease in rate change with Alberta, Ontario, and the Atlantic Provinces seeing decreases in premium rates quarter over quarter to -0.7%, -2.5%, and -5.3% respectively. Quebec was flat quarter over quarter
Across Personal Property, Alberta, British Columbia, Ontario, the Atlantic Provinces, and Saskatchewan & Manitoba all experienced increased rate change year over year to 5.1%, 6.9%, 5.1%, 8.2% and 5.2% respectively. Quebec experienced decreased rate change year over year to -0.5%. Alberta, Quebec, and Saskatchewan and Manitoba all saw decreases quarter over quarter of -2.7%, -3.2%, and -0.5% respectively. British Columbia and the Atlantic Provinces saw an increase to 4.0% and 1.6% relative to Q4 2022. Ontario was flat quarter over quarter.
“Year-over-year changes to premium renewal rates for both Personal Auto and Personal Property remain up, however quarter over quarter we’re seeing rates decrease,” said Steve Whitelaw, senior vice president and general manager, Applied Systems. “While we have been in a harder market, we’ll continue to watch the renewal data as a leading indicator of potential shifts as insurers look to price against short and long term cost pressures.”
The Applied Rating Index is a data-driven report of current conditions and trends for Personal Auto and Personal Property (Homeowners) insurance premium rates. Analyzing quotes completed, the Applied Rating Index measures the increase or decrease in average premium rate trends across Canada. The Applied Rating Index is the most complete depiction of the premium rate trends being experienced by consumers, brokerages, and their insurers across the Canadian market.
Access the complete quarterly report here.
# # #
Applied Rating Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Rating 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.
