Premium renewal rates have continued to improve into 2020, with increases across most major commercial lines products in January, according to 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.
It shows that, year over year, nearly all lines of business experienced an increase in average premium renewal rate.
This is with the exception of Workers’ Compensation, which IVANS recorded as seeing a negative turn.
Month over month, January premium renewal rates experienced upticks for General Liability, Commercial Property, Umbrella and Workers’ Compensation.
General Liability rates increased by 3.02%, compared with 2.78% in the previous month, while Commercial Property was up from 4.65% to 4.86%.
Umbrella, meanwhile, increased to 3.08% from 2.71% in December, and Workers’ Compensation improved from -3.05% to -1.63%, but remained negative overall.
In contrast, IVANS data shows negative changes for both Commercial Auto and BOP. Specifically, Commercial Auto fell from 5.12% last month to 4.09% in January, while BOP went from 4.7% to 4.4%.
“As we kick off 2020, we continue to see the broad trend of increases in year over year premium renewal rate changes for major commercial lines, including Workers’ Compensation which had a significant uptick relative to prior months,” said Brian Wood, vice president of Data Products Group, IVANS Insurance Services.
“The IVANS Index continues to give guidance on pricing for insurers to drive the most profitable premium while enabling agencies to inform insureds on expected renewal rates.”