Applied Rating Index Q2 2020 Released
National Personal Auto and Personal Property premium rates increase in nearly all provinces year over year
Mississauga, ON (July 9, 2020) – Applied Systems® is pleased to announce the second-quarter of 2020 results of the Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q2 2020, average premiums for both Personal Auto and Personal Property lines increased versus the same quarter in 2019. For Personal Auto, Alberta and the Atlantic provinces experienced the most significant increase in premium year over year for the second quarter in a row at 12.3% and 11.5% respectively. For Personal Property, Quebec’s year-over-year premium stayed the highest for the second quarter running at 22.1% while British Columbia’s annual premium rate was the only province with negative change premium rate change at -6.3%.
Key findings for Q2 2020 include:
- Personal Auto: In Q2 2020, Personal Auto premiums increased by 4.7% versus Q2 2019. Personal Auto premiums decreased -1.6% versus Q1 2020.
- Personal Property: In Q2 2020, Personal Property premiums increased by 5.3% versus Q2 2019. Personal Property premiums decreased -0.5% versus Q1 2020.
- Provinces: For Personal Auto, Ontario experienced the lowest year over year premium change at 0.8% while Alberta experienced the greatest year over year premium change at 12.3%. Compared to Q1 2020, all provinces experienced a downturn in premium change. For Personal Property, all provinces experienced an increase in premium change, except for British Columbia, year over year. Quarter over quarter, all provinces experienced a downturn in premium change.
“This quarter’s Applied Rating Index results show the market hardening as average premiums for Personal Auto and Personal Property increased year over year,” said Steve Whitelaw, vice president of Industry & Partner Relations, Applied Systems. “As the pandemic progresses, we will continue to monitor the impacts on pricing via the Applied Rating Index, providing data-driven insights into the health of the industry.”
The Applied Rating Index is a data-driven report of current conditions and trends for Personal Auto and Personal Property insurance premium rates. Analyzing more than 1.3 billion quotes completed, the Applied Rating Index measures the increase or decrease in average premium rate trends across Canada. Representing more than 80% of the brokerage market and 675 insurer rating plans written by brokers, 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.
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 Rating Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Rating Index.
SOURCE: Applied Systems
Tags: Applied Rating Index, Applied Systems
Read the original article at Insurance-Canada.ca