The fourth quarter of 2022 saw an increase in both personal auto and personal property premium rates year over year, according to the latest Applied Rating Index by insurance software provider Applied Systems.
The same report noted that premium rate change increased was up for personal auto and personal property compared to Q3 2022.
While personal auto premium rate changes fluctuated throughout the year, ending with a premium rate change of 5.1% in Q4 compared to 4.1% in Q3, the highest premium rate change in 2022 was 9.4% in Q2.
Personal property premium rate changes were also variable throughout 2022, with the lowest premium rate change of 5.1% in Q3 and the highest of 6.5% in Q2.
Quebec was the only province to experience a decrease in premium rate change for personal auto lines, while Alberta, Ontario, and the Atlantic Provinces experienced an increase in premium rate change year over year.
For personal property lines, Alberta had the highest premium rate change of 10.0%, while Quebec had the lowest at 1.9%. Saskatchewan and Manitoba remained the same at 6.7% year over year.
“At the end of Q4 2022, our data indicates that the market continued to harden as premium rates for both Personal Auto and Personal Property increased compared to 2021,” said Steve Whitelaw, vice president and general manager at Applied Systems. “As we begin a new year and navigate the continued effects of the pandemic and current macroeconomic uncertainty, 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.”
Published by Applied Systems on a quarterly basis, the Applied Rating Index measures changes in average premium rate trends across Canada based on quotes completed, providing a comprehensive depiction of the premium rate trends experienced by consumers, brokerages, and insurers in the Canadian market.
Earlier this year, Applied partnered with Halwell Mutual Insurance Company to provide real-time commercial lines quoting for Halwell's broker partners, using CSIO commercial lines data standards and its own commercial quoting capabilities.
