YoY rate changes down across all major commercial lines in Q2’24: Applied Systems
Applied Systems has released the second quarter 2024 results of the Applied Commercial Index, the Canadian insurance industry’s premium rate index, which shows that average premium rates decreased year-over-year across the most commonly placed commercial lines of business.
The firm reported that the overall rate of premium increases was lower across all lines compared to the same quarter last year, with an average increase of 5.83% in Q2 2024 compared to 7.44% in Q2 2023. All lines of business saw decreases compared to the same quarter last year.
However, quarter-over-quarter average premium rates experienced variable changes across the most commonly placed commercial lines categories.
The average premium renewal rate for Real Estate Property was 5.91% for Q2 2024, down from 6.35% in Q1 2024. Similarly, Construction, Erection, and Installation Services saw a decrease to 5.34% from 6.04% last quarter, and Hospitality Services decreased to 5.88% from 6.81%.
On the other hand, Business and Professional Services saw an increase in the Q2 2024 average premium renewal rate to 5.99%, up from 5.54% in Q1 2024. Retail Services also experienced an increase, rising to 7.40% from 6.53% last quarter.
Steve Whitelaw, Senior Vice President and General Manager, Canada, Applied Systems, commented, “Premium renewal rates continue to be elevated, but we are beginning to see some softening of rates relative to the same renewal period as last year.”
He added, “As the second half of the year begins, we expect macroeconomic trends to continue to affect rates and will look to the Index to deliver insight for renewal conversations and forecasting.”
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