By how much premiums increased in the first quarter

While consumers might have noticed their insurance rates are still increasing, prices are flattening out compared to last year’s single- or double-digit increases, two new reports from Applied Systems showed. 

Commercial lines saw an overall rate increase of 7.39% in this year’s first quarter, but the pace is slower than the previous year (8.35%), Applied’s Commercial Index report said. 

On the other hand, personal lines saw an average premium increase across both personal auto and property lines in all provinces, compared to the year prior, according to Applied’s Rating Index. 

“These insights into the shifting trends in rate changes can assist in targeted messaging to customers in each of the business segments reviewed and inform brokers’ strategy on the most profitable lines of business to drive continued growth,” said Steve Whitelaw, senior vice president and general manager, Canada, Applied Systems in a press release for its commercial report. 

Personal 

Overall, the country saw an average premium increase across both personal auto and property lines, compared to the year prior. 

In 2023’s first quarter, personal auto premium rates increased to 5.0% versus 2022’s first quarter.  

Quebec saw the highest increases in personal auto (10.4% 2023 Q1), while Ontario saw the lowest (3%). 

However, compared to the end of 2022, personal auto premium rates overall decreased -2.2%. 

In this year’s first quarter, personal property premium rates increased to 5.1% versus 2022’s first quarter. 

In personal property, all provinces experienced an increase in rates (5.1%) year over year, except Quebec, which saw the lowest rate change (-0.05% year over year), and the Atlantic Provinces saw the highest (8.2%). 

However, personal property decreased to -0.1% compared to 2022’s fourth quarter. 

Commercial 

Speaking to Canada’s commercial lines, Whitelaw said, “Overall, average rate increases were still up year over year, but the pace of increase is slowing relative to 2022.” 

For example, business and professional services saw rates increase by 6.99% (down from 8.19% in year-end 2022).  

Construction, erection, and installation services saw rates increase by 7.42% in this year’s first quarter, compared to 9.06% in 2022 Q4.

Hospitality services saw rates increase by 8.09%, down from 9.08% in 2022 Q4; real estate property rates increased by 6.83% (8.23% 2022 Q4); and retail services rates increased by 8.87% (9.19% in 2022 Q4). 

Feature image by iStock.com/Nuthawut Somsuk