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 the first quarter of 2023.
All lines experienced an increase except for General Liability which experienced a decrease in average premium renewal rates compared to Q4 2022.
Commercial Auto, Business Owner’s Policy (BOP) ended the quarter in March with their highest average premium renewal rate change. Workers’ Compensation experienced an increase but remained negative.
Commercial Auto, premiums averaged 5.85% for Q1, an increase compared to Q4 2022’s average premium renewal rate of 5.62%. In March it had 6.07%, which was also the quarter high. The quarter low was in February at 5.64%.
BOP averaged 7.12% in Q1, which represented an increase over Q4’s average of 7.01%. The quarter began with the lowest premium renewal rate change of 6.87% and reached its highest rate in March, averaging an increase of 7.31%.
Moving to General Liability, Q1 premium renewal rate change decreased from Q4, averaging 5.23% versus 5.49%. The first quarter 2023 premium renewal rate experienced its low in March at 4.98% and reached its high in February at 5.37%.
Additionally, Commercial Property Q1 premium renewal rate change rose quarter over quarter, with an average rate change of 8.89% versus 7.95% in Q4 2022. The quarter premium renewal rate change reached its low of 8.67% in January and experienced its high in March at 9.14%.
Umbrella renewal rate change averaged 5.08%, rising from 4.94% in Q4 2022. The lines average premium renewal rate change experienced its low of 4.67% in March and reached its quarter high of 5.59% in January.
And finally, Workers’ Compensation averaged -1.36%, up from Q4’s average of -1.48%. Workers’ Compensation’s quarter premium renewal rate change reached its high of -0.9% in February and started the quarter at its low of -1.85%.
“The uncertain economic conditions continue to impact rates in the insurance industry, which our data echoes and underlines the hard market sentiment expressed by insurers and brokers alike,” said Kathy Hrach, vice president of Product Management, Ivans.
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.
