Data from the latest edition of the IVANS Index shows that average premium renewal rates for nearly all major commercial lines of business remain up year over year while month-over-month rates experience continued variability.
The November 2022 results of the premium renewal rate index show that, year over year, all lines of business, except Workers’ Compensation, experienced an increase in average premium renewal rate.
Business Owners Policy (BOP) and Commercial Property remain the highest premium renewal rate increases year over year.
Meanwhile, on a month over month basis, Commercial Auto, General Liability, Commercial Property and Umbrella saw increases in premium renewal rate change, while BOP and Workers’ Compensation experienced decreases.
Specifically, for Commercial Auto lines, the Q3 premium renewal rate averaged 4.89%, a decrease compared to Q2 2022’s average premium renewal rate of 5.05%. The quarter began with its lowest rate in July, averaging 4.76% and ended with its highest of 5.05% in September.
BOP premium renewal rate averaged 6.45% versus 5.69% in Q2 2022, with a low of 6.28% in July and ending the quarter at its high of 6.63%, while General Liability averaged 5.01% versus 4.76, with a low in July at 4.65% and a high in September at 5.40%.
Next, Commercial Property increased quarter over quarter at 6.95% versus 6.40% in Q2 2022, with a low of 6.57% in August and a high in September at 7.65%, and Umbrella averaged 5.21%, increasing from 5.19% in Q2 2022, with a July high of 5.49% and an August low of 4.9%.
Finally, Workers’ Compensation premium renewal rate change averaged -1.08%, down from Q2 2022 at -0.73%. The quarter premium renewal rate change experienced its low of -1.24% in July and reached its high of -0.97% in August.
Released monthly, Ivans Index is a data-driven report of current conditions and trends for premium rate renewal change of the most placed commercial lines of business in the insurance industry, which analyses more than 120 million data transactions to measure the premium difference for a single consistent policy.