July 30, 2021 by Jason Contant
Average personal auto premium renewal rates in Canada continued their downward trend in the second quarter of 2021, while personal property (homeowners) renewal rates remained up over the same period, according to Applied Systems’ latest premium rate index.
In Q2 2021, quoted personal auto premium renewal rates decreased 10.6% compared to Q2 2020, and decreased 4.5% versus Q1 2021. Quoted homeowners’ premiums increased 4.5% in the second quarter of this year compared to the same period last year. Average premium renewal rates for personal property were up 1% in Q2 2021 compared to Q1 2021, according to the Applied Rating Index for Q2 2021, released Thursday.
“Our data for this quarter shows a slowing or reversing of the trend of relative decreases in personal auto average premium rate changes while personal property continues to trend upwards,” said Steve Whitelaw, Applied’s vice president and general manager for Canada.
Ontario led the pack with the largest average decrease in personal auto renewal rates year-over-year at 13.5%. The Atlantic provinces saw a 4.5% decrease in personal auto renewal rates year-over-year. Alberta and Quebec saw a 2.1% and 0.8% increase year-over-year, respectively.
For personal property lines, all provinces experienced an increase in premium renewal rate change year-over-year. The increases ranged from a low of 1.5% (Quebec) to a high of 7.1% (the provinces of Saskatchewan and Manitoba).
The Applied Rating Index analyzes current conditions and trends for personal auto and homeowners’ insurance premium rates. Applied reports that the index analyzes more than 1.3 billion quotes completed, representing more than 80% of the brokerage market in Canada and 675 insurer rating plans written by brokers.
Rate comparison site LowestRates.ca recently reported that personal property rates (not including condo) were trending down in the first quarter of 2021 compared to Q1 2020. Home insurance premiums quoted on LowestRates.ca were down 12% in British Columbia, 6% in Alberta, and 1% in Ontario.
However, the rising costs of material like lumber, lumber shortages, the demand for renovations as well as more frequent and severe environmental catastrophes could drive rates higher, LowestRates.ca warned in a report released Tuesday.
Feature image by iStock.com/Mark Kolpakov