Applied Systems, an insurance technology provider serving brokers, insurers and agencies, has released its fourth quarter 2025 findings from the Applied Commercial Index, which tracks premium rate movements across the Canadian commercial insurance market.
The latest data indicates that the pace of premium increases continued to slow through the end of the year. Average renewal rates rose by 2.23% in Q4 2025, a marked reduction compared with the 5.02% recorded in the same quarter of 2024. Across all major classes of business, the scale of rate rises was lower than a year earlier, signalling a continued easing in market conditions.
On a quarter-on-quarter basis, renewal rate growth moderated across the most frequently placed commercial lines. In business and professional services, average increases fell to 1.83% in Q4, down from 2.72% in Q3.
Construction, erection and installation services recorded an average rise of 2.52%, slightly below the previous quarter’s 2.81%. Hospitality services saw a sharper slowdown, with renewals averaging 0.96%, compared with 2.33% in Q3. Real estate property premiums increased by an average of 1.68%, down from 2.41%, while retail services recorded average rises of 3.12%, easing from 3.90% in the preceding quarter.
“The market across all lines of business continues to soften, following a downward trend since the middle of 2024,” added Steve Whitelaw, SVP and General Manager, Canada, Applied Systems. “These falling rates provide brokers the opportunity to engage with their customers to consider expanding coverage options and future-proof their businesses.”
Earlier this month, we reported on Applied System’s Q4 2025 results for Personal Auto and Personal Property lines in Canada, which showed year-over-year premium growth across all provinces and signs of stabilising rate increases.
