Renewal rates down across all Canada’s major commercial lines: Applied Systems

Applied Systems has released the third quarter 2025 results of the Applied Commercial Index, the Canadian insurance industry’s premium rate index, showing that average renewal rate change decreased across all of the most commonly placed commercial lines of business year over year and quarter over quarter.

According to Applied Systems, the overall average renewal rate increase declined across all lines compared with the same quarter a year earlier, falling to 2.90% in Q3’25 from 5.52% in Q3’24.

Quarter over quarter, Business and Professional Services’ premium renewal rate change average was 2.72% in Q3’25, down from 3.00% in Q2’25.

Construction, Erection, and Installation Services saw an average of 2.81% for the quarter, down from 3.56% last quarter.

Hospitality Services was 2.33%, down from the Q2’25 average of 4.53%.

Real Estate Property averaged 2.41%, down from 3.38% the previous quarter.

Retail Services’ premium renewal rate change averaged 3.90%, down from the Q2’25 average of 4.62%.

Steve Whitelaw, SVP and general manager, Canada, Applied Systems, said, “We are seeing a continued softening of the market across all commercial lines of business, both compared to Q3 last year and Q2 this year.

“The Applied Commercial Index serves as an indicator for both insurers’ pricing decisions and brokers’ recommendations as we make our way into the final quarter of the year.”

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