National premium rates increase across both Personal Auto and Property lines
Mississauga, ON (July 10, 2018) – Applied Systems® has announced the results of the second quarter’s Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q2 2018, average premiums for both Personal Auto and Property lines increased vs. the same quarter in 2017. Notably, each province experienced an increase in both Personal Auto and Personal Property except for the Personal Auto lines in the Atlantic Provinces (NB, NS, NF, PE) and Personal Property lines in British Columbia and Quebec.
Key findings for Q2 2018 include:
- Personal Auto: In Q2 2018, Personal Auto premiums increased by 2.1% versus Q2 2017. Personal Auto premiums declined -0.3% versus Q1 2018.
- Personal Property: In Q2 2018, Personal Property premiums increased by 2.7% versus Q2 2017. Personal Property premiums increased 0.5% versus Q1 2018.
- Provinces: Average premiums for Personal Auto and Personal Property increased in nearly all provinces over the past year. The only provinces to realize declines were Personal Auto in the Atlantic Provinces and Personal Property in British Columbia and Quebec. This is the second consecutive quarter that the Atlantic Provinces and British Columbia experienced a decrease in average Personal Auto premiums and Personal Property premiums, respectively.
“The rising premium rate change for this quarter compared to the same quarter last year tells us that the Personal Lines market remains hard with rising premiums,” said Jeff Purdy, senior vice president of International Operations, Applied Systems. “The Applied Rating Index continues to serve as the industry’s only data-driven index that provides brokerages guidance on expected premium rates and for insurers to determine competitive rates.”
The Applied Rating Index is a data-driven report of current conditions and trends for Personal Auto and Personal Property insurance premium rates. Analyzing more than 1.3 billion quotes completed, the Applied Rating Index measures the increase or decrease in average premium rate trends across Canada. Representing more than 80% of the brokerage market and 675 insurer rating plans written by brokers, the Applied Rating Index is the most complete depiction of the premium rate trends being experienced by consumers, brokerages, and their insurers across the Canadian market.
Access the complete quarterly report.
Applied Rating Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Rating Index.
About Applied Systems
Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland, and the United Kingdom. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most.
SOURCE: Applied SystemsTags: Applied Rating Index, Applied Systems, auto premiums, Premium Renewal