The results of the October 2021 IVANS Index show that, month-over-month, average premium renewal rates across major commercial lines of insurance business experienced variable changes, reports IVANS.
Released on a monthly basis, the IVANS Index is the insurance industry’s premium renewal rate index, which analyses more than 120 million data transactions.
The results for October reveals premium renewal rate increases for lines of business including Business Owner’s Policy (BOP), Commercial Property, and Umbrella.
In fact, on average, BOP experienced an average premium renewal rate of 5.24%, which is up on the 5.18% in September.
Commercial Property rates increased by an average of 5.93% in October compared with 5.89% last month, while Umbrella lines rose by an average of 5.02%, compared with 4.95% in September.
On the other side of the spectrum, Commercial Auto renewal rates increased by an average of 4.64%, which is a decline from the 4.70% witnessed last month.
Similarly, General Liability premium renewal rates increased by 4.18% in October against 4.25% in September, while Workers’ Compensation lines witnessed an average increase of -1.57% in October, a decrease from the -0.82% last month.
Kathy Hrach, vice president of Product Management, IVANS Insurance Services, commented: “October’s results of the IVANS Index indicate a continued increase in average premium renewal rate changes year over year.
“The rates are in line with macroeconomic inflation trends and expect the Index numbers to further mirror broader economic trends as head into the end of year renewal season.”
Year-over-year, IVANS reports that nearly all lines of business, except Workers’ Compensation, experienced an increase in average renewal rate.
The release of the October results of the IVANS Index follows the results for the third quarter of 2021, which showed that most major commercial lines of business experienced quarterly increases in average premium renewal rate.