Year-over-year average premium rates decreased across the most commonly placed commercial lines of business; average premium rates experienced variable change quarter over quarter
Toronto, ON., Aug. 01, 2024 (GLOBE NEWSWIRE) — Applied Systems® today announced the second quarter 2024 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate increases was down across all lines relative to average premium renewals in the same quarter last year with 5.83% in Q2 2024 compared to 7.44% in Q2 2023. All lines of business saw decreases compared to the same quarter last year.
Quarter over quarter, Q2 2024 results showed average renewal rate change were variable across all lines of the most commonly placed Commercial Lines categories, with Real Estate Property; Construction, Erection and Installation Services; and Hospitality Services experiencing decreases, and Business and Professional Services and Retail Services experiencing increases compared to last quarter this year.
Significant findings include:
- Business and Professional Services: Q2 2024 premium renewal rate change average was 5.99%, up from the Q1 2024 average of 5.54%.
- Construction, Erection, and Installation Services: Premium renewal rate change average was 5.34% for the quarter, down from the Q1 2024 average of 6.04%.
- Hospitality Services: Q2 2024 premium renewal rate change average was 5.88%, down from the Q1 2024 average of 6.81%.
- Real Estate Property: Premium renewal rate change average was 5.91% for the quarter, down from the Q1 2024 average of 6.35%.
- Retail Services: Premium renewal rate change averaged 7.40%, up relative to the Q1 2024 average of 6.53%.
“Premium renewal rates continue to be elevated, but we are beginning to see some softening of rates relative to the same renewal period as last year,” said Steve Whitelaw, senior vice president and general manager, Canada, Applied Systems. “As the second half of the year begins, we expect macroeconomic trends to continue to affect rates and will look to the Index to deliver insight for renewal conversations and forecasting.”
Access the complete quarterly report here.
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Applied Commercial Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Commercial 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.
CONTACT: Lauren Malcolm Applied Systems (404) 446-2635 LMalcolm@appliedsystems.com
