IVANS, a division of Applied Systems, has released the January results of its insurance premium renewal rate index, which show a majority of commercial lines of business experienced a decrease in average premium renewal rates, compared with the previous month.
Month over month, premium renewal rates increased for lines of business including Commercial Property and Umbrella, the index shows.
But Commercial Auto, Business Owners’ Policy (BOP), General Liability and Workers’ Compensation all experienced decreasing average premium renewal rates.
Despite this monthly dip, IVANS’ year-over-year comparison continues to show that nearly all lines of business, except Workers’ Compensation, continued to see an increase in average premium renewal rate.
Breaking down the monthly figures by line of business, Commercial Auto premium renewal rate change was measured at 4.13% in January, down from 4.55% in the previous month.
BOP similarly decreased from 5.77% to 5.28%, while General Liability moved from 4.78% to 4.23% and Workers’ Compensation declined further from -1.16% in December to -1.26% in January.
In contrast, Commercial Property renewal rate change increased from 6.14% to 6.17%, while Umbrella also grew from 5.40% to 5.58%.
“Many of the major commercial lines of business that had been steadily rising over the course of last year, such as BOP and General Liability, experienced decreases in average premium renewal rates this month,” said Kathy Hrach, Vice President of Product Management, IVANS Insurance Services.
“Year over year, major commercial lines of business remain positive, with the exception of Workers’ Compensation, which continues to report below zero,” Hrach added.