Overview of Premium Rate Changes
Applied Systems has officially unveiled the results for the fourth quarter of 2024, as well as the year-end findings of the Applied Rating Index. The report highlights a notable year-over-year and quarter-over-quarter escalation in the average premium rate adjustments for both Personal Auto and Personal Property lines.
Personal Auto Premium Rate Trends
In the final quarter of 2024, the average premium rate for Personal Auto witnessed an increase of 11.3% compared to Q4 of the previous year. Moreover, there was a 3.9% rise from the third quarter of 2024.
Personal Property Premium Rate Trends
Similarly, Personal Property premiums climbed by 7.3% year-over-year, alongside a 2.1% increase from the preceding quarter.
Provincial Insights
Focusing on Personal Auto, each province showcased year-over-year growth: Alberta saw a 12.7% increase, Ontario had an 11.1% rise, Quebec experienced a 9.3% hike, and the Atlantic Provinces reported a 9.0% uptick. Quarter-over-quarter, Alberta, Ontario, Quebec, and the Atlantic Provinces recorded increases of 1.4%, 4.2%, 5.5%, and 3.3%, respectively.
For Personal Property premiums, all provinces also noted increases: Alberta at 7.1%, British Columbia at 4.7%, Ontario at 9.0%, Quebec at 8.6%, the Atlantic Provinces at 4.4%, and Saskatchewan & Manitoba at 7.9%. These regions witnessed quarter-over-quarter growth of 2.0%, 1.3%, 1.9%, 6.5%, 1.7%, and 2.4%, respectively.
Comments from Leadership
Steve Whitelaw, Senior Vice President and General Manager at Applied Systems, noted, “Following the most destructive season in Canadian history for insured losses, the Q4 2024 results highlight that the premium rate index continues to ascend for both Personal Auto and Personal Property, reflecting ongoing market conditions.”
He further emphasized, “As we progress into 2025, the Applied Rating Index will persist in monitoring premium rate shifts, acting as a vital resource for renewal and pricing strategies.”
