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Applied Rating Index Q1 2020 Released

April 08, 2020

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

MISSISSAUGA, Ont. – April 8, 2020 – Applied Systems® today announced the first quarter of 2020 results of the Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q1 2020, average premiums for both Personal Auto and Personal Property lines increased versus the same quarter in 2019. For Personal Auto, Alberta and the Atlantic provinces experienced the most significant increase in premium year-over-year at 15.1% and 13.1% respectively. For Personal Property, Quebec’s year-over-year premium change spiked at 24.1% while British Columbia’s annual premium change was the only negative change across both lines of business and all regions at -3.7%.

Key findings for Q1 2020 include:

  • Personal Auto: In Q1 2020, Personal Auto premiums increased by 10.6% versus Q1 2019. Personal Auto premiums decreased -1.5% versus Q4 2019.
  • Personal Property: In Q1 2020, Personal Property premiums increased by 8.8% versus Q1 2019. Personal Property premiums increased 0.4% versus Q3 2019.
  • Provinces: For Personal Auto, while Alberta and Atlantic provinces experienced the highest increase in average premiums year over year, Alberta experienced a markedly more significant uptick from Q4 2019 (at 5.0%) to Q1 2020 (at 15.1%) relative to the 0.4% difference quarter to quarter in the Atlantic provinces. Both Quebec and Ontario experienced year over year increase in premiums but experienced a relative downturn in premiums from quarter to quarter. For Personal Property, Alberta premiums continue to experience variability quarter-to-quarter, while Ontario, Quebec, Atlantic provinces, and Saskatchewan & Manitoba had minimal average premium charger quarter-to-quarter. Year-over-year, all provinces experienced an increase in premium change year over year, except for British Columbia.


“The beginning of 2020 experienced a continuing hardening in the market as premiums increase compared to 2019, with the exception of Personal Property in British Columbia which saw the first negative change in almost two years,” said Steve Whitelaw, vice president of Industry & Partner Relations, Applied Systems. “The Applied Rating Index continues to provide the industry’s only data-driven premium insights, and it will be a critical asset to brokerages providing coverage guidance and to insurers evaluating pricing decisions as the industry navigates the current COVID-19 outbreak.”

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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