Applied Systems has announced the third quarter 2021 results of the Applied Commercial Index, the Canadian insurance industry’s premium rate index.
The company discovered that overall, the magnitude of rate increases increased across all lines, in comparison with the average premium renewals in the same quarter last year with 8.76% in Q3 2021 up from 8.31% in Q3 2020.
Real Estate and Retail Services saw rate movement of 10.49% and 8.78% versus 10.84% and 8.90%, respectively, in Q3 2020.
The index showed that compared to the same period last year, Q3 2021 results showed relatively lower rate renewal rate changes across the most commonly placed Commercial Lines categories, including Real Estate Property, Business and Professional Services, Construction, and Hospitality Services.
Premium renewal rate change increased quarter over quarter for Retail Services. Average Real Estate Property premium renewal rate change remained high in Q3 2021 at 10.49% relative to other industries. Average Construction premium renewal rate change also remained high at 9.81%.
Steve Whitelaw, vice president and general manager, Canada, Applied Systems said: “While we are still experiencing a hard market, the Q3 index shows a slight reduction of average premium rate increases across most of the major commercial lines, except Retail Services which experienced a small increase.
“As we move into the end of the year, the index will guide brokerages with data-backed insight during their renewal conversations with customers and enable insurers to determine competitive rates.”