Applied Systems, a provider of insurance technology and software, has reported that year-on-year, the level of premium rate change in Canada’s commercial insurance market was flat across all lines in the fourth quarter of 2021.
The fourth quarter and full-year 2021 results of the Applied Commercial Index™, the Canadian insurance sector’s premium rate index, shows that relative to average premium renewals, the magnitude of rate change in Q4 remained at 92.3%.
According to Applied Systems, Hospitality and Retail Services experienced their highest rate change in Q4 2021, at 9.09% and 9.14%, respectively.
Within Real Estate Property, the premium renewal rate change average was 10.22%, which is actually down on the average of 10.49% recorded in Q3 2021.
In Business and Professional Services, the Q4 2021 average premium renewal rate change was 8.16%, which is up from the 7.91% in Q3 2021.
The premium renewal rate change average for Construction, Erection and Installation Services also increased quarter-over-quarter, from 9.81% in Q3 2021 to 9.88% in Q4 2021.
Applied Systems’ analysis finds that, in 2021, results indicate that across all lines of business, average premium renewals experienced the highest rate change in Q4 at 9.23% and the lowest in Q1 at 7.68%.
Steve Whitelaw, senior vice president and general manager, Applied Systems Canada, commented: “Year over year, results indicated that premium renewal rates remained consistent across all lines of business. However, we are seeing an increase in premium renewal rates across most lines of business quarter over quarter.
“We will continue to watch these trends and report on changes so brokers and insurers have data to use in policy and renewal conversations.”