Menu

Reinsurance News

Premium renewal rates continue to climb in Q4: IVANS

16th January 2020 - Author: Matt Sheehan

Premium renewal rates continued to increase during the fourth quarter of 2019 for almost all major commercial lines products, according to the IVANs Index, a division of Applied Systems.

industry-growth-graphThe 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 Commercial Auto, BOP and Commercial Property lines all ended the year with the highest average premium renewal rate change, although rates for Workers’ Compensation dropped and remained in negative territory, where they have been through 2019.

“We saw a trend of most premium renewal rate changes hitting year-end highs in December, and a trend of most Commercial Lines increasing in Q4 with the exception of Umbrella,” said Brian Wood, vice president of Data Products Group, IVANS Insurance.

“As we head into 2020, the IVANS Index will continue to enable agents to provide guidance to clients on expected premium changes while delivering the market intelligence to insurers for pricing strategies.”

In Commercial Auto lines, premiums renewal rate change average 4.52% in Q4, with a quarter high in December at 5.12% and a low in November at 4.12%.

Across the whole year, December was still the high point for renewal rate change, while July marked a low point at 4.03%.

For BOP, premium renewal rate change average 4.57% in Q4, representing an increase over the previous quarter’s average of 4.17%.

Again, December marked the high point for both the quarter and the year at 4.75%, compared with the year’s low point of 3.94% in February.

General Liability rate increased to 2.60% in Q4, with a yearly high in December at 2.78% and a low in January at 1.16%.

Commercial Property, meanwhile, saw rates rise to 4.46% in Q4, with another yearly high in December at 4.65%, compared to a low in April at 3.69%.

In contrast, Umbrella lines saw renewal rates decrease from 2.66% in Q3 to 2.61% in Q4, with a yearly high in February at 3.06% and a low in January at 2.17%.

And finally, Workers’ Compensation rates reached -2.84% last quarter, up from the Q3 average of -2.92%.

January marked the lowest premium renewal rate change of the year at -1.04% for Workers’ Compensation, with March experience the most significant average premium renewal rate change at -4.43%.

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
CorRisk Solutions expands to include CorPro

Ryan Specialty Group subsidiary CorRisk Solutions has expanded to include the business and management team of CorPro Underwriting Managers. CorPro,...

Close