Average premium renewal rates continued to harden across nearly all major commercial lines of business during the third quarter of 2020, according to the results of the IVANS Index, a division of Applied Systems.
Q3 results showed an increase in premium renewal rate change average across nearly all major commercial lines of business compared to Q3 2019.
However, Workers’ Compensation average premium renewal rate change remained in negative territory.
Commercial Auto, Business Owners Policy, Commercial Property, and Umbrella also experienced lower average premium renewal rate compared to Q2 2020.
Meanwhile, General Liability and Workers’ Compensation experienced flat to slightly higher average premium renewal rate quarter over quarter.
Breaking down the results by line of business, premium renewal rate change for Commercial Auto averaged 4.46% in Q3, with a quarter high in July at 5.10%. The quarter low for premium renewal rate change was in August at 3.20%.
Next, BOP renewal rate change averaged 4.76%, representing a decrease over last quarter’s average of 4.97%. BOP premium renewal rate change finished the quarter at 4.89% in September.
General Liability averaged 3.44% in Q3, relative to 3.29% previously, with a low of 3.25% in September, while Commercial Property increased to 5.30%, reaching a quarter high in August at 5.48%.
Turning to Umbrella, quarterly renewal rate change averaged 3.09%, which is down relative to the Q2 2020 average at 3.25%. Umbrella premium renewal rate change for the quarter reached its high in August at 3.27%.
And finally, Workers’ Compensation: average premium renewal rate change for the quarter reached -2.41%, which is flat relative to Q2 2020.
“Our data provides data-driven support of industry commentary with hardening premium renewal rate trends in Q3, albeit relatively flat relative to Q2,” said Brian Wood, vice president of Data Products Group.
“As the effects of the pandemic and other environmental forces impact businesses, we will continue to report on premium rate changes and provide data insights to our industry.”
The IVANS Index is released on a monthly basis as a data-driven report of current conditions and trends for premium rate renewal change of the most placed commercial lines of business across the insurance sector.