Ivans, a division of Applied Systems, has released the results for the second quarter of 2024 from the Ivans Index, which showed that premium renewal rate change for all major commercial lines of business, except Workers’ Compensation, are up year over year.
At the same time, both General Liability and Workers’ Compensation were the only major commercial lines to witness a decrease in average premium renewal rate compared to Q1 2024, with all the other major lines seeing an increase in Q2 2024.
Looking at Commercial Auto, the average premium renewal rate in Q2 2024 averaged 9.28%, a slight increase compared to Q1 2024’s average premium renewal rate of 9.09%. The quarter also began with the lowest rate change in April, averaging 8.17%, and experienced its highest rate in May, which averaged 9.97%.
As for Business Owner’s Policy (BOP), premium renewal rate slightly increased in the quarter, with an average of 9.49% compared to 9.30% in Q1 2024. The quarter began with the lowest rate change in April, averaging 7.94%, and reached its highest rate in May, averaging 12.14%.
Moving attention towards General Liability, premium renewal rate change averaged 4.86% in Q2 2024, a decrease from Q1 2024’s 5.89%. The quarter also reached its highest premium renewal rate change in May, averaging 5.76% and ended with its lowest rate of 4.06% in June.
In addition, Commercial Property’s average premium renewal rate change for experienced a small increase during the quarter at 10.86% versus 10.52% in Q1 2024. As well as this, the quarter reached its lowest rate change in May, averaging 9.94%, and ended with its highest rate in June, averaging 12.68%.
The average premium renewal rate change for Umbrella experienced a notable increase during Q2 2024 at 9.62%, compared to 6.81% in Q1 2024. The quarter reached its highest premium renewal rate change in May, averaging 11.09% and ended with its lowest rate of 8.24% in June.
And lastly, Workers’ Compensation premium renewal rate change averaged -1.28% in Q2 2024, which is down from Q1 2024’s at -0.88%. The quarter began with the lowest premium renewal rate change in April, averaging -2.16%, and reached its highest rate in May, averaging -0.20.
Kathy Hrach, senior vice president of Product Management, Ivans, commented: “This quarter’s Ivans Index results show that we continue to operate in hard market conditions. We will continue to track how macroeconomic trends, severe weather events, and the shifting political landscape influence rates as we enter the second half of 2024.”
