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Applied Rating Index Q4 and 2019 Results Released

January 15, 2020

National Personal Auto and Personal Property premium rates increase in all provinces year over year

MISSISSAUGA, Ont. – January 15, 2020 – Applied Systems® today announced the fourth quarter and year-end 2019 results of the Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q4 2019, average premiums for both Personal Auto and Personal Property lines increased versus the same quarter in 2018. In 2019, Quebec experienced the greatest variability and spikes in year-over-year average premium change for both Personal Property and Personal Auto. Additionally, throughout the year, all provinces experienced an increase in average premium change for both lines of business, unlike 2018 which experienced some negative year over year change among the provinces.

Key findings for Q4 and year-end 2019 include:

  • Personal Auto: In Q4 2019, Personal Auto premiums increased by 11.6% versus Q4 2018. Personal Auto premiums increased 3.8% versus Q3 2019. The year high and low premium rate change was 11.6% and 6.6% in Q4 and Q1 respectively.
  • Personal Property: In Q4 2019, Personal Property premiums increased by 11.0% versus Q4 2018. Personal Property premiums increased 1.3% versus Q3 2019. The year high and low premium rate change was 13.6% and 7.7% in Q3 and Q1 respectively.
  • Provinces: For Personal Auto, Alberta and Atlantic provinces experienced an increase in average premiums quarter over quarter, while Ontario and Quebec experienced declining average premiums. Quarter over quarter, average premiums for Personal Property had mixed changes across quarters, with Alberta and British Columbia declining while Ontario, Quebec, and the Atlantic provinces increased; Saskatchewan and Manitoba premiums remained flat.


“The end of 2019 saw the market continuing to harden as average Personal Lines premiums increase compared to 2018,” said Steve Whitelaw, vice president of Industry & Partner Relations, Applied Systems. “As we kick off 2020, brokers and insurers will continue to be better equipped to navigate the changing market dynamics and pricing trends with the valuable insights of the Applied Rating Index.”

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.

Access the complete quarterly report here.

 

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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.

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