Applied Releases Canadian Commercial Lines Premium Rate Index Findings for Q1 2026
Average year-over-year and quarter-over-quarter renewal rates decreased across the most commonly placed commercial lines of business
Chicago, IL (May 5, 2026) – Applied Systems® is pleased to announce the first quarter 2026 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate increases was down across all lines relative to average premium renewals in the same quarter last year with 1.67% in Q1 2026 down from 3.85% in Q1 2025. To that end, rate increases across all lines of business were down compared to the same quarter last year.
Quarter over quarter, Q1 2026 results showed average renewal rate increases were down across all lines of the most commonly placed Commercial Lines categories, including Real Estate Property, Construction, Hospitality Services, and Retail Services, except Business and Professional Services which demonstrated a rate increase.
Significant findings include:
- Business and Professional Services: Q1 2026 premium renewal rate change average was 2.43%, up from the Q4 2025 average of 1.83%.
- Construction, Erection, and Installation Services: Premium renewal rate change average was 1.56% for the quarter, down from the Q4 2025 average of 2.52%.
- Hospitality Services: Q1 2026 premium renewal rate change average was 0.43%, down from the Q4 2025 average of 0.96%.
- Real Estate Property: Premium renewal rate change average was 1.02% for the quarter, down from the Q4 2025 average of 1.68%.
- Retail Services: Premium renewal rate change averaged 2.39%, down relative to the Q4 2025 average of 3.12%.
“The Q1 2026 results reflect a significant acceleration of the market softening we’ve been tracking over the past several quarters, with overall renewal rates dropping to 1.67% — less than half of what we saw in Q1 2025,” said Steve Whitelaw, SVP and general manager, Canada, Applied Systems. “The Applied Commercial Index has provided brokers and insurers with critical market intelligence to navigate an increasingly competitive landscape. As we look ahead, we are pausing publication of this report as we reimagine how we deliver insights and value in alignment with our evolving Commercial Lines roadmap.”
Final Edition of the Canadian Commercial Lines Index
This report represents the final 2026 edition of the Canadian Commercial Lines Index. As Applied continues to invest in and evolve its Commercial Lines roadmap, we are reimagining how we deliver insights and value to our clients and partners. Future reporting will be shaped by new opportunities and aligned more closely with Applied’s current and emerging solutions, ensuring the intelligence we provide remains relevant, actionable, and reflective of the market landscape. In the interim, we encourage readers to reference the Canadian Personal Lines Index for continued market insights. Applied thanks its readers for their continued engagement with the Index and looks forward to sharing what comes next.
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. For more information, please visit appliedsystems.com.
Applied Commercial Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Commercial Index.
SOURCE: Applied Systems
Tags: Applied Rating Index, Applied Systems, commercial lines