Toronto, ON, May 01, 2025 (GLOBE NEWSWIRE) — Applied Systems® today announced the first quarter of 2025 results of the Applied Rating Index™, the Canadian insurance industry’s premium rate index. In Q1 2025, average premiums for both Personal Auto lines and Personal Property lines increased year over year. Quarter over quarter, premium rate change increased for Personal Auto and increased for Personal Property compared to Q4 2024.
For Personal Auto, all provinces experienced an increase year over year, with Ontario seeing the highest at 14.7% and Alberta the lowest at 12.1%. For Personal Property lines, all provinces except British Columbia experienced an increase in premium rate change year over year. Quebec saw the highest premium rate change at 9.6% and British Columbia was the only province to experience a decline in rates at an average of -5.9%.
Key findings for Q1 2025 include:
- Personal Auto: In Q1 2025, Personal Auto premium rate change increased 13.2% versus Q1 2024. Personal Auto premium rate change increased 2.2% versus Q4 2024.
- Personal Property: In Q1 2025, Personal Property premium rate change increased 5.0% versus Q1 2024. Personal Property premium rate change increased 1.7% versus Q4 2024.
- Provinces: Across Personal Auto, all provinces experienced increased premium rate change year over year with Alberta, Ontario, Quebec and the Atlantic Provinces seeing 12.1%, 14.7%, 14.0% and 14.2% respectively. Relative to Q4 2024, all provinces, except Alberta, saw increases in quarter over quarter premium rate change with Alberta, Ontario, Quebec and the Atlantic Provinces experiencing –1.7%, 4.5%, 2.0%, and 3.3% respectively.
- Personal Property lines experienced increased year over year premium rate change across all provinces except British Columbia. Alberta, Ontario, Quebec, the Atlantic provinces, and Saskatchewan & Manitoba saw increases in premium rate change year over year with 3.4%, 5.7%, 9.6%, 4.1% and 4.0% respectively. British Columbia recorded a year over year decline in premium rate change of −5.9%. Relative to Q4 2024, all provinces, except British Columbia and Quebec saw increases quarter over quarter with Alberta, Ontario, Quebec, the Atlantic provinces, Saskatchewan & Manitoba, and British Columbia experiencing 2.9%, 1.0%, -1.0%, 1.4%, 0.8%, -0.5% and respectively.
“Following a year of inflation, higher vehicle repair costs, rising auto theft, and severe weather driving up property claims, these macro trends are being reflected in the Q1 2025 Index results,” said Steve Whitelaw, SVP and general manager, Applied Systems Canada. “The Applied Rating Index remains a vital tool for tracking rate changes and guiding pricing decisions as these and other cost pressures impact loss costs and in-turn rate movement within the Personal Lines market.”
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.
About Applied Systems
Applied Systems is the leading global provider of cloud-based software that powers the business of insurance. Recognized as a pioneer in insurance automation and the innovation leader, Applied is the world’s largest provider of agency and brokerage management systems, serving customers throughout the United States, Canada, the Republic of Ireland, and the United Kingdom. By automating the insurance lifecycle, Applied’s people and products enable millions of people around the world to safeguard and protect what matters most.
