Applied Releases Commercial Lines Premium Rate Index Findings for Q2 2025
July 31, 2025
Year-over-year average renewal rates decreased across the most commonly placed commercial lines of business; average premium rates experienced variable change quarter over quarter
Toronto, ON – July 31, 2025 – Applied Systems® today announced the second quarter 2025 results of the Applied Commercial Index™, the Canadian insurance industry’s premium rate index. Overall, the magnitude of rate increases was down across all lines relative to average premium renewals in the same quarter last year with 3.63% in Q2 2025 down from 5.83% in Q2 2024. All lines of business saw decreases compared to the same quarter last year.
Quarter over quarter, Q2 2025 results showed average renewal rate change decreased across many lines of the most commonly placed Commercial Lines categories, including Real Estate Property, Business and Professional Services, and Construction. Hospitality Services and Retail Services experienced an increase in average renewal rate change.
Significant findings include:
- Business and Professional Services: Q2 2025 premium renewal rate change average was 3.00%, down from the Q1 2025 average of 3.99%.
- Construction, Erection, and Installation Services: Premium renewal rate change average was 3.56% for the quarter, down from the Q1 2025 average of 3.85%.
- Hospitality Services: Q2 2025 premium renewal rate change average was 4.53%, up from the Q1 2025 average of 3.08%.
- Real Estate Property: Premium renewal rate change average was 3.38% for the quarter, down from the Q1 2025 average of 3.58%.
- Retail Services: Premium renewal rate change averaged 4.62%, up from the Q1 2025 average of 4.57%.
“This quarter’s average premium renewal rate change continues to decrease across the most commonly placed commercial lines of business, except Hospitality Services which saw a spike,” said Steve Whitelaw, SVP and general manager, Canada, Applied Systems. “As we make our way into the second of the year, the Applied Commercial Index will shine light on how current macro trends such as US tariffs and others will affect rates.”
Access the complete quarterly report here.
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Applied Commercial Index is a trademark of Applied Systems, Inc. All data is fully anonymized when aggregating and analyzing the Applied Commercial 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.