IVANS, a division of Applied Systems, has released the Q3 results of its insurance premium renewal rate index, which show that nearly all major commercial lines of business experienced quarterly increases in average premium renewal rate.
This quarter’s results showed premium renewal rate change for all major commercial lines of business remained in positive territory year over year except Workers’ Compensation, which stayed negative.
Compared to the prior quarter, Q3 experienced an increase in average premium renewal rate change across all major commercial lines of business except Commercial Auto, which decreased.
Specifically, Commercial Auto Q3 average premium renewal rate averaged 4.32%, a decrease compared to Q2’s average premium renewal rate of 4.51%. The quarter experienced its low in August at 4.06% and ended the quarter with its high of 4.70%.
BOP increased in Q3 with an average of 5.05% versus 4.59% in Q2. The quarter began with its lowest rate in July at 4.87%, and ended the quarter with its highest rate at 5.18%.
Next, General Liability rate rose compared to Q2, averaging 4.21% versus 3.95%. Q3 premium renewal rate experienced its low in July at 4.17% and reached its high in September at 4.25%.
Commercial Property also increased quarter over quarter at 5.77% versus 5.54% in Q2. The quarter premium renewal rate change reached its low of 5.62% in August and experienced its high at the end of the quarter at 5.89%.
In addition, Umbrella averaged 4.85% growth, rising from 4.40% in Q2. Umbrella premium renewal rate change began the quarter with a low of 4.73% and ended with a quarter high of 4.95%.
And finally, Workers’ Compensation premium renewal rate change averaged -1.40%, up from Q2 at -1.74%. The quarter premium renewal rate change reached its low of -1.93% in July and ended the quarter at its high of -0.82%.
“The Q3 results of the IVANS Index continues to show we are operate in a hard market,” said Kathy Hrach, vice president of Product Management, IVANS Insurance.
“In fact, Commercial Auto, BOP, General Liability, Umbrella and Workers’ Compensation reached their highest average premium renewal rate of the year in September.”