Applied Systems has released the third quarter 2024 results of the Applied Commercial Index, the Canadian insurance industry’s premium rate index, showing that average premium rates decreased year-over-year across the most commonly placed commercial lines of business.
Overall, rates declined by 5.52% in Q3 2024, a drop compared to the 7.27% increase recorded in Q3 2023.
Business and Professional Services, Construction, Hospitality Services, Real Estate, and Retail Services all experienced rate decreases compared to the same period last year.
The firm reported that average premium rates saw variable changes quarter-over-quarter across all lines within the most commonly placed commercial categories.
In Q3 2024, Business and Professional Services saw an average premium renewal rate change of 5.30%, down from 5.99% in Q2 2024.
Construction, Erection, and Installation Services saw a slight increase to 5.36%, up from the Q2 2024 average of 5.34%.
Hospitality Services averaged 5.77%, a decrease from the prior quarter’s average of 5.88%.
Real Estate Property averaged 5.32% this quarter, reflecting a decrease from the Q2 2024 average of 5.91%.
Retail Services was up this quarter relative to Q2 2024, with a premium renewal rate change average of 7.53%, compared to 7.40%.
Steve Whitelaw, Senior Vice President and General Manager of Canada at Applied Systems, said, “Compared to the same period in 2023, the results showed a year-on-year decrease in premium renewal rates, indicating a continued trend of softening rates.”
He added, “As we near the close of the year and look ahead to 2025, this data will continue to inform insurer pricing decisions and broker recommendations during end-of-year renewal conversations.”
