Average premiums for personal auto and property insurance lines increased year-over-year in the third quarter of 2023, showing the highest rate change in years, according to cloud-based insurance software provider Applied Systems.
The Applied Rating Index also showed that the premium rate change for both lines rose compared to the previous quarter.
"This quarter's year-over-year premium rate change is the highest for both personal auto and personal property in years, except for Q2 2022 when personal auto year-over-year premium rate change increased to 9.3%," said Steve Whitelaw, senior vice president and general manager at Applied Systems.
"Our data continues to show the hard market environment we are operating in and acts as a leading premium indicator as we go into 2024 renewals."
In Q3 2023, the premium rate change for personal auto increased by 7.5% compared to Q3 of the previous year. The premium rate change increased by 5.7% compared with last quarter.
All provinces in Canada felt the year-over-year increase in premium rate change. The Atlantic Provinces saw the highest increases at 13.5%, followed by Quebec with 13.0%, Alberta with 9.0%, and Ontario with 5%.
In the previous quarter, the provinces also saw significant increases: Alberta had a 5.5% increase, Ontario 4.2%, Quebec 7.5%, and the Atlantic Provinces 10.4%.
In personal property, the premium rate change rose 7.5% compared to Q3 2022 and increased 1.6% from the previous quarter.
All provinces felt the increase year-on-year: Alberta saw a 1.0% increase, British Columbia 10.1%, Ontario 7.5%, Quebec 11.1%, the Atlantic Provinces 10.2%, and Saskatchewan & Manitoba 7.5%.
Compared to Q2 2023, Alberta was the only province that did not experience an increase in the premium rate change. While British Columbia (1.4%), Ontario (2.1%), Quebec (3.0%), the Atlantic Provinces (3.2%), and Saskatchewan & Manitoba (2.6%) all saw an increase, Alberta had a decrease of -1.1%.
The Applied Rating Index measures the increase or decrease in Canada's average premium rate trends.
In the second quarter, it found that personal auto and personal property had a 5.9% year-over-year increase and a 1.7% and 1.2% quarterly increase, respectively.
What do you think about the results of the Applied Rating Index for this quarter? Share your thoughts in the comments below.
