Average premium renewal rate changes of nearly all major commercial lines of business remain up year over year, according to the latest edition of the IVANS Index while all lines increase month over month except Umbrella.
The Q2 results showed that premium renewal rate change for all major commercial lines of business increased year over year, except Workers’ Compensation which remained negative.
Q2 also experienced an increase in average premium renewal rate change across Commercial Auto, Business Owner’s Policy (BOP), General Liability, Commercial Property, and Workers’ Compensation compared to Q1 2022, while Umbrella experienced a decrease.
Specifically, for commercial auto, Q2 average premium renewal rate change averaged 5.05%, an increase compared to Q1 2022’s average premium renewal rate change of 4.22%.
BOP also increased with an average of 5.69% versus 5.32% in Q1 2022, while general liability rates were up by an average of 4.76% versus 4.3%, and commercial property increased at 6.4% versus 6.16% in Q1 2022.
For umbrella, Q2 premium renewal rate change averaged 5.19%, dropping from 5.77% in Q1 2022.
And finally, workers’ compensation rate change averaged -0.73%, up from Q1 2022 at -1.23%.
“This quarter’s Ivans Index continues to show average premium renewal rate changes tracking alongside other hard market macroeconomic trends,” said Kathy Hrach, vice president of Product Management, Ivans.
“The Index continues to serve as a valuable asset for agencies and carriers to inform pricing and renewal decisions, and a guidepost on the health of the independent agent channel to the broader industry.”
Ivans Index is a data-driven report of current conditions and trends for premium renewal rate change of the most placed commercial lines of business in the insurance industry.
Analyzing more than 120 million data transactions, the index measures the premium difference year over year for a single consistent policy.