Applied Releases Commercial Lines Premium Rate Index Findings for Year-End and Q4 2023
Year-over-year and quarter-over-quarter average premium rates experienced variability across the most commonly placed commercial lines of business
Toronto, ON (Feb. 7, 2024) – Applied Systems is pleased to announce the final quarter 2023 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 (8.58% in Q4 2022) to 7.55% in Q4 2023. Quarter over quarter, Q4 2023 results showed average renewal rate change increased across Business and Professional Services, Real Estate and Retail Services. Average renewal rate change for Construction and Hospitality decreased in Q4 2023 compared to Q3 2023.
Significant findings include:
- Business and Professional Services: Q4 2023 premium renewal rate change average was 6.86%, up from the Q3 2023 average of 6.27%.
- Construction, Erection, and Installation Services: Premium renewal rate change average was 7.48% for the quarter, down from the Q3 2023 average of 7.80%.
- Hospitality Services: Q4 2023 premium renewal rate change average was 7.73%, down from the Q3 2023 average of 8.11%.
- Real Estate Property: Premium renewal rate change average was 7.86% for the quarter, up from the Q3 2023 average of 7.24%.
- Retail Services: Premium renewal rate change averaged 9.22%, up relative to the Q3 2023 average of 7.73%.
“Year over year, results indicate lower premium renewal rates compared to 2022, 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, Canada, Applied Systems. “As we move into 2024, we will continue to watch the average premiums and provide data to guide insurer pricing decisions and broker advice as they navigate policy and renewal conversations.”
Access the complete quarterly report.
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.
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SOURCE: Applied Systems
Tags: Applied Rating Index, Applied Systems, commercial lines