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Applied Systems has released first quarter of 2024 results of the Applied Commercial Index, the Canadian insurance industry’s premium rate index.
Overall, the index shows that rates saw an increase of 6.14% in the first quarter of 2024, which is depressed relative to the rate increase of 7.39% in the same period last year.
According to the index, Business and Professional Services, Construction, Hospitality Services, Real Estate and Retail Services all saw decreases in Q1 2024 compared to the same quarter last year.
However, quarter over quarter Q1 2024 results showed average renewal rate change decreased across all lines of the most commonly placed Commercial Lines categories.
In Q1 2024, Business and Professional Services premium renewal rate change average was 5.54%, a decrease from the Q4 2023 average of 6.86%.
Moving towards Construction, Erection, and Installation Services, premium renewal rate change average was 6.04% for the quarter, down from the Q4 2023 average of 7.48%.
Additionally, for Hospitality Services, the quarters premium renewal rate change average sat at 6.81%, down from the Q4 2023 average of 7.73%.
Other notable premium movements included Real Estate Property, which decreased from 7.86% to 6.35%, and Retail Services, which decreased from 9.22% to 6.53%.
Steve Whitelaw, senior vice president and general manager, Canada, Applied Systems, commented: “Overall, average rate increases were still up year over year, but the pace of increase is slowing relative to 2023.
“Our index shows that the magnitude of renewal increases are lessening in some segments of the market, which will be insightful for brokers in renewals conversations with customers and where to target business growth opportunities.”
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