Ivans Index has reported that year-over-year average premium renewal rates remain up for the majority of commercial lines in Q3, while month-over-month rates experience variable changes.
Q3 2022 showed premium renewal rate change for all major commercial lines of business increased year over year, aside from Workers’ Compensation, which remained negative. Ivans Index suggests that Business Owner’s Policy (BOP) and Commercial Property remain the highest premium renewal rate increases year over year.
Meanwhile, on a month over month basis, Commercial Auto, BOP, and Workers’ Compensation saw increases in premium renewal rate change, while General Liability, Commercial Property and Umbrella experienced decreases.
Expounded, Commercial Auto Q3 average premium renewal rate averaged 4.89%, a decrease compared to Q2 2022’s average premium renewal rate of 5.05%. The quarter began with its lowest rate in July, averaging 4.76% and ended with its highest of 5.05% in September.
BOP premium renewal rate increased in Q3 with an average of 6.45% versus 5.69% in Q2 2022. The quarter premium renewal rate change experienced its low of 6.28% in July and ended the quarter at its high of 6.63%.
General Liability Q3 premium renewal rate experienced an increase compared to Q2 2022, averaging 5.01% versus 4.76%. Q3 premium renewal rate experienced its low in July at 4.65% and reached its high in September at 5.40%.
Average premium renewal rate change for Commercial Property increased quarter over quarter at 6.95% versus 6.40% in Q2 2022. The quarter premium renewal rate change reached its low of 6.57% in August and experienced its high in September at 7.65%.
Q3 premium renewal rate change averaged 5.21%, increasing from 5.19% in Q2 2022. Umbrella premium renewal rate change began with its highest rate of 5.49% in July and experienced its low of 4.9% in August.
Workers’ Compensation premium renewal rate change averaged -1.08%, down from Q2 2022 at -0.73%. The quarter premium renewal rate change experienced its low of -1.24% in July and reached its high of -0.97% in August.