IVANS, a division of Applied Systems, has reported an increase in the average premium renewal rate change across all major commercial lines of business year over year in July.
According to IVANS Index, July experienced an increase in average premium renewal rate change across Commercial Auto, BOP, Commercial Property, and Workers’ Compensation, while General Liability and Umbrella saw a decline.
Commercial Auto premiums averaged 6.62% for July, compared to average premium renewal rate of 6.53%.
At the same time, BOP premium’s increased in July with an average of 7.82%, compared to 7.64%.
Moving to Commercial Property, premium renewal rate change experienced an increase during July at 9.74% versus 9.34% in Q123.
Workers’ Compensation premium renewal rate change averaged -0.52% for July, slightly up from -0.71%.
For General Liability, July premium’s experienced a slight decrease compared to previous year, averaging 5.37% versus 5.58%.
Umbrella premium renewal rate change witnessed an increase during July at 4.9% versus 5.92%.
“We expect commercial rate increases to persist throughout 2023 in response to still-high claim cost inflation, rising reinsurance costs, and concerns over unusual catastrophes. In particular, rising reinsurance costs and persistently-elevated catastrophe losses should keep reaccelerating property rate increases,” according to KBW analysts.
“We expect persistent Workers’ Compensation underwriting profitability to preclude significant rate increases, but rate decreases should moderate or evolve into modest rate increases over the next 12 months.”
