New data from Applied Systems shows that the overall magnitude of commercial lines premium rate movements slowed in Canada during the fourth quarter of last year.
Analysts report that rate increases decelerated across all lines relative to average premium renewals in the same quarter in the previous year, at 8.58% in Q4 2022 compared to 9.23% in Q4 2021.
Quarter over quarter, Q4 2022 results demonstrated average renewal rate change decreases across Construction, Hospitality Services, and Retail Services, but increased for Business and Professional Services and Real Estate.
Notably, in Q4 the average Construction premium renewal rate change experienced a yearly low at 9.06%.
“Year over year, results indicated that premium renewal rates decreased across all lines of business. However, we are seeing an increase in premium renewal rates across several lines of business quarter over quarter,” said Steve Whitelaw, Senior Vice President and General Manager at Applied Systems Canada.
“With ongoing macroeconomic uncertainty, we expect to see average premium renewal changes reflected in the index which serves as a leading indicator for brokers as they navigate renewals.”