The results of the latest Applied Rating Index by Applied Systems shows that average premiums for both Personal Auto lines and Personal Property lines increased in Canada year over year, in the fourth quarter of 2023.
According to Applied Systems, quarter over quarter, premium rate change increased for Personal Auto, and also increased for Personal Property compared to Q3 2023.
Looking at Personal Auto, all provinces witnessed an increase year over year, with Quebec scoring the highest at 12.4% and Alberta the lowest at 7.6%.
As for Personal Property lines, all provinces experienced an increase in premium rate change year over year, with British Columbia seeing the highest premium rate change at 11.1% and Alberta experiencing the lowest at 0.7%.
In Q4, Personal Auto premium rate change increased 10.1% versus Q4 2022. Personal Auto premium rate change increased 4.8% versus Q3 2023.
Moreover, in Q4 2023, Personal Property premium rate change increased 6.6% versus Q4 2022, and Personal Property premium rate change increased 2.4% versus Q3 2023.
Throughout Personal Auto, all provinces witnessed increased premium rate change year over year with Alberta, Ontario, Quebec and the Atlantic Provinces seeing 7.6%, 8.0%, 12.4% and 10.0% respectively.
Relative to Q3 2023, all provinces also experienced an uptrend in premium rate change, Applied Systems noted.
Alberta, Ontario, Quebec and the Atlantic Provinces saw significant increases in premium rate change quarter over quarter with 1.6%, 4.7%, and 3.0% and 3.9% respectively.
And with Personal Property, Alberta, British Columbia, Ontario, Quebec, the Atlantic provinces, and Saskatchewan & Manitoba all saw increases in premium rate change year over year with 0.7%, 11.1%, 8.3%, 2.5%, 9.1% and 6.4% respectively.
Also relative to Q3 2023, Alberta, British Columbia, Ontario, Quebec, the Atlantic provinces and Saskatchewan & Manitoba all witnessed increases quarter over quarter of 0.4%, 4.1%, 3.3%, 2.9%, 2.6% and 2.0% respectively.
Steve Whitelaw, senior vice president and general manager, Applied Systems, commented: “The close of 2023 saw the highest premium rate index for both Personal Auto and Personal Property seen in years,” said Steve Whitelaw, senior vice president and general manager, Applied Systems. “As we make our way into the new year, the Applied Rating Index will continue to track the market trends for Personal Auto and Property insurance premium rates and be a reference for brokers as they navigate renewals.”
The Applied Rating Index is a data-driven report of current conditions and trends for Personal Auto and Personal Property (Homeowners) insurance premium rates.
