Average auto insurance premiums decreased in the first quarter of 2021, while home insurance premiums remained high during the same period, brokerage management systems (BMS) provider Applied Systems states in its latest Applied Rate Index,published on April 21.
In the first quarter of 2021, auto insurance premium renewal rate change was down 7.8 percent versus Q1 2020.
In all provinces except Alberta, the premium renewal rate change decreased since Q4 2020.
Home insurance: Snapshot by province
In the first quarter of 2021, personal property insurance renewal rate change increased by 3.0 percent compared with the first quarter of 2020. Between Q4 2020 and Q1 2021, the renewal rate change decreased by 0.2 percent compared with 2.8 percent in Q4 2020.
For all provinces, the premium renewal rate change increased in Q1 2021.
“Our findings indicate that the Personal Property market continued to harden in Q1 2021. The market for Personal Auto, however, is reflective of changes in driving behaviour influencing premium decreases year over year," notes Steve Whitelaw, vice president of industry and partner relations at Applied Systems.
The Applied Rating Index is a data-driven report of current conditions and trends for Personal Auto and Personal Property insurance premium rates. Analyzing more than 1.3 billion quotes completed, the Applied Rating Index measures average premium rate trends across Canada and represents more than 80% of the brokerage market and 675 rating plans written by brokers.