IVANS, a division of Applied Systems, has reported renewal rate change for all major commercial lines of business except Workers’ Compensation are up year over year in the third quarter of 2023.
According to IVANS Index, Q3 experienced an increase in average premium renewal rate change across Commercial Auto, BOP, Commercial Property, General Liability and Umbrella, while Workers’ Compensation saw a decline.
Commercial Auto premiums averaged 7.01% in Q3’23, compared to average premium renewal rate of 6.50% in Q2’23.
At the same time, BOP premium’s increased in Q3’23 with an average of 7.74%, compared to 7.56% in Q2’23.
For General Liability, Q3’23 premium renewal rate experienced an increase compared to Q2’23, averaging 5.43% versus 5.21%. The third quarter premium renewal rate experienced its high in August at 5.61% and reached its low in September at 5.32%.
Moving to Commercial Property, premium renewal rate change experienced an increase during Q3’23 at 10.08% versus 9.77% in Q2’23.
Umbrella premium renewal rate change witnessed an increase during Q3’23 at 5.29% versus 5.12% in Q2’23.
Workers’ Compensation premium renewal rate change averaged -0.98% for Q3’23, up from Q2’23 at -1.10%. The third quarter of 2023 began with the highest rate change in July, averaging -0.52%, and ended with its lowest rate in September, averaging -1.37%.
“This quarter’s Ivans Index shows that nearly across the board the hard market continues as rate increases further hike north,” said Kathy Hrach, vice president of Product Management, Ivans.
“We will continue to monitor the rates as we further navigate the challenging macroeconomic environment through year end and prepare for 2024 renewals.”
