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Applied Releases Premium Rate Index Findings for Year-End and Q4 2020

January 28, 2021

Across Canada, Personal Property premium rates increased while Personal Auto rates dropped year over year

Mississauga, ON – January 28, 2021 – Applied Systems® today announced the fourth quarter and year-end 2020 results of the Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q4 2020, average premium rates for Personal Auto lines decreased versus the same quarter in 2019, while Personal Property lines remained up over the same period. Quarter over quarter, average premium rate change decreased for Personal Auto, while Personal Property increased compared to Q3 2020.

Significant findings include:
Personal Auto
In Q4 2020, Personal Auto premium rate change decreased -2.6% versus Q4 2019. Personal Auto premium rate change decreased -0.2% versus 0.6% in Q3 2020.

  • All provinces experienced a downturn in premium rate change relative to Q3 2020.
  • Alberta and the Atlantic provinces experienced the most significant increase in premium rate change year over year for the fourth quarter in a row, at 8.0% and 2.6% respectively.
  • Quebec experienced a modest increase of 1.6%, while Ontario saw premium rate change decrease at -3.2% year over year.

Personal Property
In Q4 2020, Personal Property premium rate change increased 3.6% versus Q4 2019. Personal Property premium rate change increased 2.8% versus 0.8% in Q3 2020.

  • All provinces experienced an increase in premium rate change year over year.
  • Quebec’s year-over-year premium rate change remained the highest for the fourth quarter running at 13.6%, albeit down from Q3 at 15.6%.
  • British Columbia turned around its negative trajectory, up from -7.9% in Q3 2020 to 3.1% in Q4 2020.
  • Alberta saw its second quarter of decreases year over year in Personal Property lines with -1.2% in Q3 2020 and -1.4% in Q4 2020.
  • Ontario, Saskatchewan and Manitoba, and the Atlantic provinces all saw modest increases year over year of 3.1%, 6.0% and 2.1% respectively.

 

“At the end of Q4 2020, our data indicates that the market continued to harden as premium rates for Personal Property increased compared to 2019. Alternatively, the market for Personal Auto has softened as premium rates decreased at year end 2020 relative to 2019,” said Steve Whitelaw, vice president of Industry & Partner Relations, Applied Systems. “As we begin a new year and continue to navigate the effects of the pandemic, the Applied Rating Index will continue to serve as a light post for the industry on trends for Personal Auto and Personal Property insurance premium 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.

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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