Applied Systems, a global provider of cloud-based software that powers insurance businesses, has announced the second quarter 2022 results of the Applied Commercial Index, the Canadian insurance industry’s premium rate index.
The company discovered that year over year, the average renewal rate change decreased from 9.12% in Q2 2021, to 8.95% in Q2 2022.
All lines of business, except Retail and Business & Professional Services, saw decreases compared to the same quarter last year, Applied Systems noted.
On the other hand, quarter over quarter Q2 2022 results showed an average renewal rate change increase across all lines of the most commonly placed Commercial Lines categories.
This included Business and Professional Services, Construction, Hospitality Services, Real Estate Property and Retail Services.
At the same time, the company reported that Real Estate Property premium renewal rate change average was 8.81% for this year’s second quarter, up from the Q1 2022 average of 8.75%.
The premium renewal rate change average for Business and Professional Services was 8.72%, compared to the 7.96% reported in Q1 2022. For Construction, Erection and Installation Services it went up from 9.32% in this year’s Q1, to 9.80% in the second quarter.
Hospitality Services: Q2 2022 premium renewal rate change average was 8.82%, up from the Q1 2022 average of 8.02%. For Retail Services it was averaged 9.51%, up relative to the Q1 2022 average of 8.59%.
Steve Whitelaw, senior vice president and general manager, Canada, Applied Systems, said: “While premium renewal rates are lower than this time last year, we are seeing a steady increase in rates since the start of the year.
“Our index supports the anecdotal evidence that we are indeed in a hard market. As we make our way into the second half of 2022, our quarterly index will show if the market continues this trend.”