Applied Systems, an insurance technology provider serving brokers, insurers and institutions, has released fourth quarter 2025 findings from the Applied Business Index, which tracks premium movements across the Canadian commercial insurance market.
The latest data shows that the pace of premium growth continued to slow at the end of the year. The average renewal rate increased by 2.23% in the fourth quarter of 2025, which was a significant decrease from 5.02% in the same quarter of 2024. Across all major business categories, rate increases were smaller than the same period last year, indicating continued accommodative market conditions.
On a quarter-over-quarter basis, renewal rate growth slowed for the most frequently placed commercial product lines. In business and professional services, average growth fell to 1.83% in the fourth quarter, down from 2.72% in the third quarter.
Construction and installation services grew by an average of 2.52%, slightly lower than the 2.81% in the previous quarter. Hotel services growth slowed even more, with the average renewal rate at 0.96%, compared with 2.33% in the third quarter. Real estate premiums increased by an average of 1.68%, down from 2.41% in the previous quarter; retail services increased by an average of 3.12%, down from 3.90% in the previous quarter.
“The market continues to be soft across all lines of business, having been trending downward since mid-2024,” added Steve Whitelaw, senior vice president and general manager, Canada, Applied Systems. “The decline in interest rates provides brokers with an opportunity to engage with clients to consider expanding coverage and future-proof their business.”
Earlier this month, we reported fourth-quarter 2025 results for Applied System Canada’s personal auto and personal property lines, which showed year-over-year premium growth in all provinces and signs of stabilizing rate growth.