Applied Systems has released second quarter of 2024 results of the Applied Rating Index, which shows that average premiums for both Personal Auto lines and Personal Property lines increased year over year, while quarter over quarter, premium rate change increased for Personal Auto and increased for Personal Property compared to the first quarter of 2024.
Focusing attention on Personal Auto, all provinces saw an increase year over year, with the Atlantic Provinces posting the highest at 14.7%, and Quebec the lowest at 9.9%.
As for Personal Property lines, all provinces experienced an increase in premium rate change year over year, with Ontario seeing the highest premium rate change at 12.5% and Quebec experiencing the lowest at 4.9%.
It was also revealed that in Q2 2024, Personal Auto premium rate change increased 13.3% versus Q2 2023, while it also increased by 1.8% compared to Q1 2024.
At the same time, in Q2 2024, Personal Property premium rate change increased 9.9% compared to Q2 2023, while it also increased by 1.6% versus Q1 2024.
Moving forward, the Index shows that across Personal Auto, all provinces experienced increased premium rate change year over year with Alberta, Ontario, Quebec and the Atlantic Provinces seeing 10.05%, 11.7%, 9.9% and 14.7% respectively.
Relative to Q1 2024, all provinces also witnessed an increase in quarter over quarter premium rate change with Alberta, Ontario, Quebec and the Atlantic Provinces experiencing 4.5%, 1.0%, and 1.6% and 1.3% respectively.
Going back to Personal Property now, all lines for Alberta, British Columbia, Ontario, Quebec, the Atlantic Provinces, as well as Saskatchewan & Manitoba saw increases in premium rate change year over year with 5.8%, 10.7%, 12.5%, 4.9%, 7.9% and 8.3% respectively.
However, relative to Q1 2024, premium rate change for Alberta, British Columbia, Ontario, Quebec, the Atlantic Provinces and Saskatchewan & Manitoba experienced 0.0%, -5.2%, 2.5%, 1.0%, 0.2% and -1.2% respectively.
Steve Whitelaw, senior vice president and general manager, Applied Systems, commented: “Both Personal Property and Personal Auto are experiencing increases year-over-year and quarter-over-quarter, signifying continued hardening in the market.
“As we make our way into the second half of the year, the Applied Rating Index will enable data-driven conversations amongst brokers during renewals and insurers regarding pricing.”
