Applied Systems Announces the Applied Rating Index
May 16, 2018
Canadian insurance industry’s only data-driven index to provide insight into premium rate change
Mississauga, ON – May 16, 2018 – Applied Systems today announced the Applied Rating Index™, the Canadian insurance industry’s premium rate index. Released on a quarterly basis, the Applied Rating Index measures average premium rates for Personal Auto and Property lines of business. The rate insights will enable brokerages to provide guidance on expected premium rates during renewals and when evaluating new policies, as well as provide insurers a data-backed reference point to determine competitive rates.
The Applied Rating Index is a data-driven report of current conditions and trends for Personal Auto and Personal Property insurance premium rates. Analyzing more than 1.3 billion quotes completed, the Applied Rating Index measures the increase or decrease in average premium rate trends across Canada. Representing more than 80% of the brokerage market and 675 insurer rating plans written by brokers, the Applied Rating Index is the most complete depiction of the premium rate trends being experienced by consumers, brokerages, and their insurers across the Canadian market.
In Q1 2018, average premiums for both Personal Auto and Property lines increased vs. the same quarter in 2017. Notably, each province experienced an increase in both Personal Auto and Personal Property except for the Personal Auto lines in the Atlantic Provinces (NB, NS, NF, PE) and Personal Property lines in British Columbia. Key findings include:
- Personal Auto: In Q1 2018, Personal Auto premiums increased by 2.2% versus Q1 2017. Personal Auto premiums declined -1.6% versus Q4 2017.
- Personal Property: In Q1 2018, Personal Property premiums increased by 2.9% vs. Q1 2017. Personal Property premiums increased by 0.5% versus Q4 2017.
- Provinces: Average premiums for Personal Auto and Personal Property increased in nearly all provinces over the past year. The only provinces to realize declines were Personal Auto in the Atlantic Provinces and Personal Property in British Columbia.
“As a significant provider to the Canadian insurance industry, Applied is in a unique position to provide premium rate insights based on the volume of quotes being exchanged across the industry on a daily basis,” said Jeff Purdy, senior vice president of International Operations, Applied Systems. “The Applied Rating Index provides brokerages with the information they need to provide trusted advice and guidance to their insureds, while providing insurers an opportunity to effectively evaluate how to ensure the greatest return on product pricing.”
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Applied Rating Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Rating 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.