The results of the latest Applied Rating Index by Applied Systems show that average premiums for both Personal Auto lines and Personal Property lines increased in Canada year over year in the fourth quarter of 2022.
Quarter over quarter, premium rate change increased for both Personal Auto and Personal Property compared to Q3 22.
According to Applied Systems, Personal Auto quarterly premium rate change fluctuated throughout 2022, as it ended the year with 5.1% premium rate change in Q4, up from 4.1% in Q3.
At the same time, Applied Systems states that 2022 saw its highest premium rate change in Q2 with 9.4% and its lowest in Q1 with 3.4%.
Personal Property quarterly premium rate change was also variable throughout 2022, with Q4 premium rate change increasing 6.1%, up from 5.1% in Q3, which was the lowest premium rate change of the full-year. The highest premium rate change for the full-year came in Q2 with 6.5%.
Meanwhile, Personal Auto, Alberta, Ontario, and the Atlantic Provinces each experienced an increase in premium rate change year over year of 8.1%, 2.7% and 12.3% respectively. Quebec experienced a decrease in premium rate change of 6.6% year-over-year.
Across Personal Property, Alberta, British Columbia, the Atlantic Provinces, and Saskatchewan & Manitoba, all experienced decreased rate change year over year to 10.0%, 6.3%, 7.2%,and 6.7% respectively.
Ontario and Quebec experienced increased rate change year over year to 5.4% and 1.9% respectively.
Furthermore, relative to Q3 22, all provinces, except Alberta experienced an increase in rate change. British Columbia, Ontario, Quebec, the Atlantic Provinces, and Saskatchewan and Manitoba all saw increases quarter over quarter of 3.1%, 2.5%, 11.4%, 3.5%, and 3.0% respectively. Alberta saw a decrease to 0.7% relative to Q3 2022.
“At the end of Q4 2022, our data indicates that the market continued to harden as premium rates for both Personal Auto and Personal Property increased compared to 2021,” said Steve Whitelaw, vice president and general manager, Applied Systems.
“As we begin a new year and navigate the continued effects of the pandemic and current macroeconomic uncertainty, the Applied Rating Index will continue to serve as a light post for the industry on trends for Personal Auto and Personal Property insurance premium rates.”
The Applied Rating Index is a data-driven report of current conditions and trends for Personal Auto and Personal Property (Homeowners) insurance premium rates.