Year-over-year, average premium renewal rate changes in the third-quarter of 2019 increased across all lines of business, although Workers’ Compensation remains in negative territory, as recorded by the IVANs Index, a division of Applied Systems.
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.
In Q3 2019 and when compared with Q2 2019, Commercial Auto’s premium renewal rate change averaged 4.32%, which is down, and included a quarter high of 4.49% in August. Business Owner’s Policy (BOP) recorded an average increase of 4.17%, although again this is down on Q2, with a quarter high of 4.09% in September.
General Liability recorded an average increase of 2.51%, an increase when compared with Q2, with a low of 2.2% in July. Commercial Property’s Q3 premium renewal rate change averaged 4.2% and reached a quarter high of 4.35% in September, and was also up on Q2. Umbrella recorded an average increase of 2.66% compared with 2.59% in Q2, while Workers’ Compensation also increased in the period from -3.56% in Q2 2019 to -2.92%, although remains in negative territory.
Brian Wood, Vice President (VP) of Data Products Group, IVANS Insurance, said: “From Q3 2018 to Q3 2019, most Commercial Lines premium renewal rates have increased, with the exception of Workers’ Compensation which continues to trend down.
“Our numbers continue to show prices increasing, arming brokers with the data-driven insights they need to more accurately guide customers during renewals and providing insurers line of sight in how their pricing compares to industry averages.”
The increases witnessed in the third-quarter follow a year-on-year increase across almost all commercial lines during the second quarter of 2019.