Canadian insurance industry’s only data-driven index to provide insight into premium renewal rate change within some of the most placed commercial lines of business
Mississauga, ON (Oct. 30, 2020) – Applied Systems is pleased to announce Applied Commercial Index™, the Canadian insurance industry’s commercial lines premium rate index. Released on a quarterly basis, Applied Rating Index measures average premium rates for the most placed commercial lines of business. The rate insights will provide insurers a data-backed reference point to determine competitive rates and enable brokerages to deliver guidance on expected premium rates during renewals and when evaluating new policies.
Applied Commercial Index is a data-driven report of current conditions and trends for premium renewal rate change within some of the most commonly placed commercial lines business in the Canadian market. Analyzing almost 22,000 data transactions per quarter, the Applied Commercial Index premium renewal rate change measures the premium difference year over year for various lines of business. All data used in the preceding analysis has been anonymized and aggregated, removing all potential identifying characteristics.
Q3 results showed an increase in premium renewal rate change average across nearly all major commercial lines categories, including Real Estate Property; Business & Professional Services; Construction, Erection & Installation Services; and Hospitality Services; Retail Services. Overall, rates continue to remain hard relative to average premium renewals in the same quarter last year; however, all lines except Retail Services are experiencing slight softening premium renewal rates as compared to Q1 2020. Average Real Estate Property premium renewal rate change hit a quarter high relative to other lines of business at 10.84 % in Q3.
Key findings include:
- Real Estate Property: premium renewal rate change average is up 10.84% for the quarter, up from the Q2 average of 10.73%.
- Business and Professional Services: Q3 2020 premium renewal rate change average is up 7.11%, down from the Q2 average of 7.36%.
- Construction, Erection & Installation Services: premium renewal rate change average is up 8.20% for the quarter, up from the Q2 average of 7.85%.
- Hospitality Services: Q3 2020 premium renewal rate change average is up 7.09%, up from the Q2 average of 6.31%.
- Retail Services: premium renewal rate change average is up 8.90% for the quarter, up from the Q2 average of 7.87%.
“The Applied Commercial Index is the only data-backed report for commercial lines premium rate changes based on thousands of transactions being exchanged across the industry every day,” said Steve Whitelaw, vice president of Industry & Partner Relations, Applied Systems. “Using insight from the data provided by the Applied Commercial Index, the Canadian insurance ecosystem can effectively evaluate which lines of business have the greatest potential for growth.”
Access the complete quarterly report here.
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. For more information, please visit appliedsystems.com.
Applied Commercial Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Commercial Index.
SOURCE: Applied SystemsTags: Applied Rating Index, Applied Systems