Premium renewal rates increased for all major commercial lines of business year-over-year, with the exception of Workers’ Compensation, according to the first quarter results of the insurance premium renewal index by IVANS, a division of Applied Systems.
The data shows that Q1 also experienced an increase in average premium renewal rate change across Commercial Property and Umbrella compared to Q4 2021.
However, Commercial Auto, BOP, General Liability and Workers’ Compensation experienced decreases in average premium renewal rates compared to Q4 2021.
Specifically, average premium renewal rate for Commercial Auto over Q1 were 4.22%, a decrease compared to Q4 2021’s average premium renewal rate of 4.69%. The quarter reached its lowest rate in February, averaging 4.06% and ended with its highest of 4.47% in March.
For BOP, premium renewal rate dropped in Q1 with an average of 5.32% versus 5.58% in Q4 2021. The quarter began and ended with premium renewal rate change of 5.28% and reached its highest rate in February, averaging 5.41%.
General Liability experienced a decrease compared to Q4 2021, averaging 4.3% versus 4.41% previously, with a low of 4.11% in February and a high of 4.56% in March.
Next, Commercial Property rate changes increased quarter over quarter at 6.16% versus 5.95% in Q4 2021, with a low of 6.01% in February and a high in March at 6.29%, while Umbrella averaged 5.77% in Q1, rising from 5.13% in Q4 2021, with a low of 4.68% in February and a high of 7.04% in March.
Finally, Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -1.23%, down from Q4 2021 at -1.16%. The quarter premium renewal rate change reached its high of -0.95% in February and ended the quarter at its low of -1.48%.
“We are seeing that our data is consistent with macroeconomic trends, like inflation, as average premium renewal rates continue to rise,” said Kathy Hrach, vice president of Product Management, IVANS.
“As these rates rise, we will continue to watch as they show up in the form of profitable earnings by both agents and carriers.”