Ivans, a division of Applied Systems, has reported renewal rate change for all major commercial lines of business except Workers’ Compensation and Umbrella are up year over year, the second quarter of 2023.
According to Ivans, Q223 experienced an increase in average premium renewal rate change across Commercial Auto, BOP, Commercial Property, Umbrella and Workers’ Compensation compared to Q123, while General Liability experienced a minor decrease.
Commercial Auto premiums averaged 6.50% for Q2, compared to Q123’s average premium renewal rate of 5.85%.
Ivans noted that the quarter began with the lowest rate change in April, averaging 6.16%, and reached its highest rate in May, averaging 6.80%.
At the same time, BOP premium’s increased in Q2 with an average of 7.56%, compared to 7.12% in Q123. However, the quarter reached its lowest premium renewal rate change in May, averaging 7.44% and ended with its highest rate of 7.64% in June.
For General Liability, Q2 premium’s experienced a slight decrease compared to Q123, averaging 5.21% versus 5.23%. Q223 premium renewal rate experienced its low in May at 4.56% and reached its high in June at 5.58%.
Moving to Commercial Property, premium renewal rate change experienced an increase during Q2 at 9.77% versus 8.89% in Q123. Ivans highlighted how the quarter began with the highest rate change in April, averaging 10.09%, and reached its lowest rate in June, averaging 9.34%.
In addition, Umbrella premium renewal rate change witnessed an increase during Q2 at 5.12% versus 5.08% in Q123. Premium renewal rate change in Q223 reached its low of 4.36% in May and experienced its high in June at 5.92%.
And lastly, Workers’ Compensation premium renewal rate change averaged -1.10% for Q2, slightly up from Q123’s -1.36%. Premium renewal rate change in Q2 2023 reached its low of -1.37% in May and ended the quarter at its high of -0.71%.
Commenting on the results, Kathy Hrach, vice president of Product Management, Ivans, said: “The Q2 results of the Ivans Index show that the premium renewal rates continue to increase in line with other pricing trends in the broader macro environment.
“As we enter the second half of the year, the Index will see how changing regulatory environments and hurricane season impact premium renewal rates and carrier and agent investment in certain lines of business based on profitability opportunity.”
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 within the insurance industry.