New figures from insurance software provider, Applied Systems, published in that company’s third quarter 2024 Applied Commercial Index of Canadian premiums, shows year-over-year average premium rates decreasing across most commonly placed commercial lines of business.
“Overall, rates saw a decrease of 5.52 per cent in Q3 2024, which is depressed relative to the rate increase of 7.27 per cent in Q3 2023,” they write. “Business and professional services, construction, hospitality services, real estate and retail services all saw decreases in Q3 2024 compared to the same quarter last year.
Retail services
Quarter-over quarter, meanwhile, in business and professional services, the rate change average was 5.3 per cent, down from 5.99 per cent in the second quarter of 2024. Construction premium renewal rates changed 5.36 per cent on average, up from 5.34 per cent in the second quarter. Retail services premiums changed the most, with the average renewal rate change coming in at 7.53 per cent, up from the 7.4 per cent average change reported in Q2.
Year-over-year, however, they say the figures tell a different story: “Overall, the magnitude of rate increases was down across all lines relative to average premium renewals in the same quarter last year, with 5.52 per cent in Q3 2024, down form 7.27 per cent in Q3 2023,” they state. “All lines of business saw decreases compared to the same quarter last year.”
