Quarterly rate changes experience downturn across most major commercial lines: Applied Systems
Applied Systems has announced the first quarter 2022 results of the Applied Commercial Index, the Canadian insurance industry’s premium rate index.
The company discovered that overall, across all industries of the most commonly placed commercial lines, rates were up relative to average premium renewals in the same quarter from last year, with 8.35% in Q122, up from 7.68% from Q121.
All major commercial lines of business, except Real Estate Property, saw increases compared to the same period from last year.
However, the company also discovered that quarter over quarter, Q122 results showed average renewal rate change decreased across all lines of the most commonly placed Commercial Lines categories.
Premium renewal rate change average was 8.75% for the quarter for Real Estate Property, down from the Q421 average of 10.22%. Business & Professional Services premium renewal rate change average was 7.96%, down from the Q421 average of 8.16%.
At the same time, the company reported that Construction, Erection and Installation Services premium renewal rate change average was 9.32% for the quarter, down from 9.88% from the Q421 average.
Moreover, premium renewal rate change average was 9.32% for Hospitality Services, compared to 9.88% from the Q421 average. And, Retail Services premium renewal rate change averaged 8.59%, down relative to the Q421 average of 9.14%.
Steve Whitelaw, senior vice president and general manager, Canada, Applied Systems, said: “The Q1 index shows a continuing increase in premium levels, however, there is a slight reduction of average premium rate increases across all of the major commercial lines compared to last quarter.
“The financial and cost pressures in our economy are being seen in premium renewal rates as well, and we will keep an eye on the trends in the commercial P&C rate environment.”