Applied Systems, a global provider of cloud-based software that powers insurance businesses, has released the third quarter results of the Applied Commercial Index, the Canadian insurance industry’s premium rate index.
The index shows that average premium rates increased year-over-year in Q3, while quarterly rate change experienced variability across the most commonly placed commercial lines of business
Overall, Applied reported that rates saw a depressed increase of 8.46% in Q3 2022 relative to the rate increase of 8.76% in Q3 2021.
But all lines of business, except Real Estate Services, saw increases compared to the same quarter last year.
Quarter over quarter, Q3 2022 results showed average renewal rate change decreased across Business and Professional Services and Real Estate Property, but increased across Construction, Hospitality Services and Retail Services.
Significant findings include an average premium renewal rate change of 8.07% for Business and Professional Services lines through Q3, compared with the Q2 2022 average of 8.72%.
Also, Construction, Erection, and Installation Services saw an average premium renewal rate change of 9.85% for the quarter, up from the Q2 average of 9.80%.
Other notable premium movements included Hospitality Services, which increased from 8.82% to 10.40%, Real Estate Property, which decreased from 8.81% to 7.76%, and Retail Services, which remained relatively flat quarter-over-quarter at 9.53%.
“We are seeing premium increases across almost all lines of business, which is a consistent trend through this year,” said Steve Whitelaw, Senior Vice President and General Manager, Canada, Applied Systems.
“We continue to see resilience in the industry and as we move into the end of the year and look into 2023, this data will continue to inform insurer pricing decisions and broker advice during renewal conversations.”