Premium renewal rates continued to increase across nearly all major commercial lines of business during the second quarter of 2020, according to the results of the IVAN Index, a division of Applied Systems.
Measured year over year, Commercial Auto, Business Owner’s Policy, General Liability, Umbrella, and Commercial Property all showed an upward trend.
However, Workers’ Compensation average premium renewal rate change remained in negative territory.
Notably, Business Owners Policy, General Liability, Property, and Umbrella experienced higher average premium renewal rate change from the quarter prior.
And Commercial Property continues to hit record premium renewal rate highs, experiencing the largest percentage jump of 5.51% in April., with an average rate change of 5.29% over Q2.
Commercial Auto premium renewal rate change averaged 4.72% for the quarter, with a quarter high in April at 4.80%. The quarter low for premium renewal rate change was in June at an average of 4.63%.
BOP averaged 4.97%, representing an increase over last quarter’s average of 4.65%. BOP premium renewal rate change finished the quarter at 4.64% in June.
Meanwhile, General Liability averaged 3.29% compared to 3.08% in Q1. The quarter premium renewal rate change reached its low of 3.23% in May, which is still higher relative to all average premium renewal rate change for General Liability experienced in Q1 2020.
Umbrella rate change averaged 3.25% versus 3.06% previously, reaching a high of 3.56% in June.
And finally, Workers’ Compensation average premium renewal rate change for the quarter reached -2.41%, down from a Q1 average of -1.81%.
“The Q2 IVANS Index results show a continued hardening in the market as premium renewal rates for nearly all major commercial lines of business increase year over year, with the exception of Workers’ Compensation,” said Brian Wood, vice president of Data Products Group.
“As the pandemic begins to impact the industry, we will continue to monitor premium renewal rate changes via the IVANS Index, delivering guidance for brokers as they advise customers and for insurers to evaluate which lines of business to invest in.”
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.