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Applied Releases Premium Rate Index Findings for Q1 2021

April 21, 2021

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

Mississauga, ON – April 21, 2021 – Applied Systems® today announced the first quarter 2021 results of the Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q1 2021, average premiums for Personal Auto lines decreased year over year, while Personal Property lines remained up over the same period. Quarter over quarter, premium renewal rate change decreased for both Personal Auto and Personal Property compared to Q4 2020.

Significant findings include:

Personal Auto
In Q1 2021, Personal Auto premium renewal rate change decreased -7.8% versus Q1 2020. Personal Auto premium renewal rate change decreased -6.7% versus -0.2% in Q4 2020.

  • All provinces except Alberta experienced a downturn in premium renewal rate change relative to Q4 2020.
  • Ontario, Quebec and the Atlantic provinces saw significant drops in premium renewal rates quarter over quarter with -7.5%, -6.9%, and -6.3% respectively, driven mainly from endorsements to policies reflecting changing driving habits as a result of social restrictions and lockdown measures, rather than decreases in base premiums.
  • Alberta saw an increase in premium renewal rate change quarter over quarter of 1.4%.


Personal Property
In Q1 2021, Personal Property premium renewal rate change increased 3.0% versus Q1 2020. Personal Property premium renewal rate change decreased -0.2% versus 2.8% in Q4 2020.

  • All provinces experienced an increase in premium renewal rate change year over year.
  • Quebec’s year-over-year premium renewal rate change remained the highest for the fifth quarter running at 8.6%, albeit down from Q4 2020 at 13.6%.
  • Alberta turned around its negative trajectory, up from -1.4% to 1.6% year over year.
  • British Columbia, Ontario, Saskatchewan and Manitoba, and the Atlantic provinces all saw increases year over year of 3.9%, 0.3%, 4.2% and 4.9% respectively.


“Our findings indicate that the Personal Property market continued to harden in Q1 2021, as premium renewal rates increased compared to 2020. The market for Personal Auto, however, is reflective of changes in driving behaviour influencing premium decreases year over year,” said Steve Whitelaw, vice president of Industry & Partner Relations, Applied Systems. “As we continue to see the pandemic drive consumer purchasing behavior, insights derived from the Applied Rating Index provide brokers a data-backed reference point to determine competitive rates and renewal opportunities.”

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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