Applied Rating Index Year-End and Q4 2022 Released

March 07, 2023

National Personal Auto and Personal Property premium rates increased in all provinces year over year

MISSISSAUGA, Ont. – March 7, 2023 – Applied Systems® today announced the year-end and fourth quarter of 2022 results of the Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q4 2022, average premiums for both Personal Auto lines and Personal Property lines increased year over year. Quarter over quarter, premium rate change increased for both Personal Auto and Personal Property compared to Q3 2022.

Personal Auto quarterly premium rate change fluctuated throughout 2022, ending the year with 5.1% premium rate change in Q4, up from 4.1% in Q3. 2022 saw its highest premium rate change in Q2 with 9.4% and its lowest in Q1 with 3.4%. Personal Property quarterly premium rate change was also variable throughout 2022, with Q4 premium rate change increasing 6.1%, up from 5.1% in Q3, which was the lowest premium rate change of 2022. The highest premium rate change for 2022 came in Q2 with 6.5%.

For Personal Auto, Alberta, Ontario, and the Atlantic Provinces experienced an increase in premium rate change year over year of 8.1%, 2.7% and 12.3% respectively. Quebec experienced a decrease in premium rate change of 6.6% year over year.

For Personal Property lines, the provinces were variable, with some experiencing an increase in premium rate change year over year and others experiencing a decrease compared to Q4 2021, with Quebec seeing the lowest at 1.9% and Alberta seeing the highest at 10.0%. Saskatchewan & Manitoba remained the same at 6.7% year over year.

Key findings for Q4 2022 include:

• Personal Auto: In Q4 2022, the Personal Auto premium rate change increased to 5.1% versus Q4 2021. The Personal Auto premium rate change decreased to 2.3% versus Q3 2022.
• Personal Property: In Q4 2022, the Personal Property premium rate change increased to 6.1% versus Q4 2021. Personal Property increased to 3.2% versus Q3 2022.
• Provinces: Across Personal Auto, all provinces except Quebec experienced an increased rate change year over year with Alberta, Ontario, and the Atlantic Provinces seeing 8.1%, 2.7% and 12.3% respectively. Quebec experienced a decreased rate change year over year of 6.6%. Relative to Q3 2022, all provinces experienced a decrease in rate change except the Atlantic Provinces. Alberta, Ontario, and Quebec all saw decreases in premium rates quarter over quarter, to 2.9%, 1.8%, and 3.6% respectively. The Atlantic Provinces saw an increase in premium rates quarter over quarter to 7.3%.
  
  Across Personal Property, Alberta, British Columbia, the Atlantic Provinces, and Saskatchewan & Manitoba all experienced decreased rate change year over year to 10.0%, 6.3%, 7.2%, and 6.7% respectively. Ontario and Quebec experienced increased rate change year over year to 5.4% and 1.9% respectively. Relative to Q3 2022, all provinces, except Alberta experienced an increase in rate change. British Columbia, Ontario, Quebec, the Atlantic Provinces, and Saskatchewan and Manitoba all saw increases quarter over quarter of 3.1%, 2.5%, 11.4%, 3.5%, and 3.0% respectively. Alberta saw a decrease to 0.7% relative to Q3 2022.

“At the end of Q4 2022, our data indicates that the market continued to harden as premium rates for both Personal Auto and Personal Property increased compared to 2021,” said Steve Whitelaw, vice president and general manager, Applied Systems. “As we begin a new year and navigate the continued effects of the pandemic and current macroeconomic uncertainty, the Applied Rating Index will continue to serve as a light post for the industry on trends for Personal Auto and Personal Property insurance premium rates.”

The Applied Rating Index is a data-driven report of current conditions and trends for Personal Auto and Personal Property (Homeowners) insurance premium rates. Analyzing quotes completed, the Applied Rating Index measures the increase or decrease in average premium rate trends across Canada. The Applied Rating Index is the most complete depiction of the premium rate trends being experienced by consumers, brokerages, and their insurers across the Canadian market.

Access the complete quarterly report here.

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Applied Rating Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Rating Index.

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