Average premium rates increased across all major commercial lines
Mississauga, ON, Aug. 04, 2021 (GLOBE NEWSWIRE) — Applied Systems® today announced the second quarter 2021 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate increases across all segments included in the index relative to average premium renewals in the same quarter last year is 9.12% in Q2 2021 up from 8.18% in Q2 2020. Quarter over quarter, Q2 2021 results showed small increases on renewals across the most commonly placed commercial lines categories, including Real Estate Property; Business & Professional Services; Construction; Hospitality Services; and Retail Services.
Significant findings include:
Real Estate Property
Average Real Estate Property premium renewal rate change of 10.62% remained high in Q2 relative to other segments of business.
- In Q2 2021, the average premium renewal rate change is up as compared to 10.26% in Q1.
- Year over year, the Q2 2021 average premium renewal rate change is down from 10.73%.
Business and Professional Services
Renewal rate changes for Business and Professional Services averaged 8.57% in Q2 2021.
- Quarter over quarter, the average premium renewal rate change is up almost two points from 6.59% in Q1.
- The Q2 2021 average premium renewal rate change is higher than the same quarter last year (7.36%).
Construction, Erection and Installation Services
Renewal rate changes for Construction, Erection & Installation Services averaged 10.27% in Q2 2021.
- Q2 2021 average renewal premium rate significantly increased from 8.76% in Q1.
- The Q2 2021 average premium renewal rate change is up as compared to the same quarter last year (7.85%).
Premium renewal rate changes for Hospitality Services averaged 8.99% in Q2 2021.
- Quarter over quarter, the average premium renewal rate change is up from 6.21% in Q1.
- The Q2 2020 average premium renewal rate change is up more than two and a half points as compared to the same quarter last year (6.31%).
Renewal rate changes for Retail Services averaged 8.30% in Q2 2021.
- Quarter over quarter, the average premium renewal rate change increased as compared to 7.12% in Q1.
- The Q2 2021 average premium renewal rate change is down from the same quarter last year (7.87%).
“This quarter’s index demonstrates a continued hardening of the market across all classes of commercial lines of business included in the index with most seeing significant quarterly increases,” said Steve Whitelaw, vice president and general manager, Canada, Applied Systems. “We will continue to watch and report on changes to deliver guidance to brokers and insurers to use when providing advice to their customers in policy and renewal conversations.”
Access the complete quarterly report here.
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 firstname.lastname@example.org
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