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Applied Releases Commercial Lines Premium Rate Index Findings for Q3 2021

November 11, 2021

Year-over-year average premium rates remain positive while quarterly rate changes experience downturn across most major commercial lines

Mississauga, ON – November 11, 2021 – Applied Systems® today announced the third quarter 2021 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate increases was up across all lines relative to average premium renewals in the same quarter last year with 8.76% in Q3 2021 up from 8.31% in Q3 2020. Real Estate and Retail Services saw rate movement of 10.49% and 8.78% versus 10.84% and 8.90%, respectively, in Q3 2020.

Quarter over quarter, Q3 2021 results showed relatively lower rate renewal rate changes across the most commonly placed Commercial Lines categories, including Real Estate Property, Business and Professional Services, Construction, and Hospitality Services. Premium renewal rate change increased quarter over quarter for Retail Services. Average Real Estate Property premium renewal rate change remained high in Q3 2021 at 10.49% relative to other industries. Average Construction premium renewal rate change also remained high at 9.81%.

Significant findings include:

  • Real Estate Property: Premium renewal rate change average was 10.49% for the quarter, down from the Q2 2021 average of 10.62%.
  • Business and Professional Services: Q3 2021 premium renewal rate change average was 7.91%, down from the Q2 2021 average of 8.57%.
  • Construction, Erection and Installation Services: Premium renewal rate change average was 9.81% for the quarter, down from the Q2 2021 average of 10.27%.
  • Hospitality Services: Q3 2021 premium renewal rate change average was 7.23%, down from the Q2 2021 average of 8.99%.
  • Retail Services: Quarter premium renewal rate change averaged 8.78%, which was up relative to the Q2 2021 average of 8.30%.

“While we are still experiencing a hard market, the Q3 index shows a slight reduction of average premium rate increases across most of the major commercial lines, except Retail Services which experienced a small increase,” said Steve Whitelaw, vice president and general manager, Canada, Applied Systems. “As we move into the end of the year, the index will guide brokerages with data-backed insight during their renewal conversations with customers and enable insurers to determine competitive rates.”

Access the complete quarterly report here.


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Applied Commercial Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Commercial 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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