Applied reports rise in rates for personal auto and personal property

Year-over-year increases seen in all provinces

Applied reports rise in rates for personal auto and personal property

Insurance News

By Mika Pangilinan

Applied Systems has published the results of its Applied Rating Index for the first quarter of 2023, revealing that average premiums for both the personal auto and personal property insurance lines saw year-over-year increases.

The premium rate change for personal auto in Q1 2023 increased to 5% compared to the same period in 2022. However, there was a decline in the premium rate change compared to Q4 2022, with a decrease of -2.2%.

Similarly, the premium rate change for Personal Property insurance increased to 5.1% compared to Q1 2022 but experienced a slight decrease of -0.1% from Q4 2022.

Analyzing the data by provinces, the report reveals that all provinces witnessed an increase in the rate change for personal auto versus the previous year. Alberta, Ontario, Quebec, and the Atlantic Provinces experienced rate changes of 6.6%, 3.0%, 10.4%, and 7.5%, respectively.

However, when compared to Q4 2022, all provinces except Quebec posted a decrease in rate change. Alberta, Ontario, and the Atlantic Provinces reported decreases in premium rates quarter over quarter, with -0.7%, -2.5%, and -5.3%, respectively. Quebec remained flat in terms of rate change quarter over quarter.

As for personal property, Alberta, British Columbia, Ontario, the Atlantic Provinces, and Saskatchewan & Manitoba all saw an increase in rate change compared to the previous year, with changes of 5.1%, 6.9%, 5.1%, 8.2%, and 5.2%, respectively. Meanwhile, Quebec experienced a decrease in rate change of -0.5%.

Meanwhile, on a quarter-over-quarter basis, decreases in rate change were seen in Alberta, Quebec, and Saskatchewan & Manitoba, with -2.7%, -3.2%, and -0.5%, respectively.

“Year-over-year changes to premium renewal rates for both personal auto and personal property remain up, however quarter-over-quarter we’re seeing rates decrease,” said Steve Whitelaw, senior vice president and general manager at Applied Systems. “While we have been in a harder market, we’ll continue to watch the renewal data as a leading indicator of potential shifts as insurers look to price against short and long term cost pressures.”

Applied Systems recently released the year-end and Q4 2022 results of its commercial premium rate index, revealing that the average premium renewal rate change decreased across all major commercial lines in Canada year-over-year.

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