Most commercial lines premium renewal rates continued to show upward growth year-on-year, according to the October results of the IVANS Index, a division of Applied Systems.
However, compared to previous months this year, IVANS noted a slight softening of premium renewal averages in October.
For instance, Commercial Auto lines saw premium renewal rate increases of 4.43% last month, which was down from 5.08% in September.
BOP similarly experienced rate growth of 4.39%, a decrease from 4.89% previously, and Workers’ Compensation stay in negative territory at -2.78%, down from 2.07% in the prior month.
General Liability, on the other hand, saw continued upward rate momentum, with premium renewal rates up by 3.38% in October, compared to 3.25% in September.
The same was true for Commercial Property rates, which rose from 5.01% to 5.52%, and also for Umbrella lines, where premiums rate increases grew substantially from 2.78% to 3.78%.
“Year over year, the IVANS Index shows a continued rise for most commercial lines premium renewal rates while indicating some slight softening of premium renewal averages as compared to months prior,” said Kathy Hrach, vice president of Product Management, IVANS Insurance Services.
“With continued economic uncertainty and the ongoing pandemic, the IVANS Index will provide data-driven guidance for insurers as they determine pricing strategies in a hardening market.”
The IVANS Index is released on a monthly basis as a data-driven report of current conditions and trends for premium rate renewal change of the most placed commercial lines of business across the insurance sector.