Average premium renewal rates continued to harden across nearly all major commercial lines of business during the month of August 2020, according to the results of the IVANS Index, a division of Applied Systems.
Year over year, all lines of business experienced an increase in average premium renewal rate, except Workers’ Compensation, which saw a negative change in premium.
And measured month over month, August premium renewal rates experienced a positive change across General Liability, Commercial Property, BOP, Umbrella and Workers’ Compensations, with only Commercial Auto seeing a negative change.
General Liability rates increased by 3.61%, up from 3.45% in July, while Commercial Property moved from 5.42% to 5.48%.
BOP, meanwhile, increased by 5.00%, up from 4.38% in the previous month, and Umbrella rose from 3.23% to 3.27%.
In contrast, Commercial Auto rates decreased from 5.01% last month to 3.2% in August, while Worker’s Compensation remained in negative territory at -2.51%, an improvement on -2.66% previously.
“As the pandemic progresses, we continue to see a hardening in the market across all lines of business, but August showed a noticeable downshift in Commercial Auto as compared to July and will be a line of business to watch closely,” said Brian Wood, vice president of Data Products Group, IVANS Insurance Services.
“While the data shows that rates are likely to stay up year over year and offset other negative impacts on the industry, the IVANS Index will continue to serve as a bellwether to provide guidance on the health of the 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.