Personal auto and property insurance premiums continued to increase across all provinces in the fourth quarter of 2025, according to new data released by Applied Systems.
The Applied Rating Index for Q4 2025 showed average premiums for personal auto lines rose 14.4% compared with the same period in 2024, while personal property premiums increased 7.8% year over year. Quarter over quarter, personal auto premiums increased 2.9%, and personal property premiums rose 1.3%.
Ontario experienced the highest year-over-year increase for personal auto insurance at 17.1%, followed by the Atlantic provinces at 15.4%, Quebec at 13.4%, and Alberta at 11.1%. All provinces saw quarter-over-quarter increases in personal auto premiums, with the Atlantic provinces leading at 5.4%, Alberta at 3.8%, Ontario at 3.1%, and Quebec at 2.7%.
For personal property insurance, Alberta recorded the highest year-over-year premium change at 13.5%. The Atlantic provinces saw increases of 9.5%, Saskatchewan and Manitoba at 9.0%, Quebec at 6.4%, and Ontario at 4.3%. British Columbia experienced the lowest year-over-year increase at 1.8%.
Quarter over quarter, the Atlantic provinces led personal property premium increases at 3.7%, followed by Alberta at 2.4%, Saskatchewan and Manitoba at 2.3%, and Quebec at 1.8%. Ontario saw a 1.6% increase, while British Columbia was the only province to experience a quarterly decrease at -1.5%.
Data from Catastrophe Indices and Quantification Inc. (CatIQ) show that insured losses from severe weather in Canada topped about $2.4 billion in 2025, making it one of the costlier years on record for weather-related insurance claims.
Notable events included a late-March ice storm in Ontario and Quebec, wildfires in Manitoba and Saskatchewan, hailstorms in Calgary and severe summer storms across the Prairies, along with flooding in British Columbia.
“The Canadian personal lines market continues to experience premium growth across all provinces,” said Steve Whitelaw, senior vice-president and general manager of Applied Systems Canada. “For Q4 2025, the data suggests the rate of increases is stabilizing compared with earlier quarters, indicating the market may be entering a more measured phase of adjustment rather than the rate of premium increases continuing to accelerate.”
The Applied Rating Index analyses completed quotes to measure changes in average premium rate trends across Canada. Applied Systems describes it as the most complete depiction of premium rate trends being experienced by consumers, brokerages, and insurers across the Canadian market.
Applied Systems is a cloud-based software provider that serves the insurance industry throughout the United States, Canada, the Republic of Ireland, and the United Kingdom.
