Premium renewal rates continued to increase during the first quarter of 2020 for almost all major commercial lines products, 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 Commercial Auto, Business Owner’s Policy (BOP), General Liability, Umbrella, and Commercial Property all saw positive average renewal rate changes this quarter, compared to Q4 2019.
This is with the exception of Workers’ Compensation, which remained in negative territory but improved from the end of 2019 results.
Notably, all lines of business experienced higher average premium renewal rate change from the prior quarter.
“The IVANS Index provides a data-driven pulse on the market, indicating hardening and softening trends across major commercial lines of business,” said Brian Wood, Vice President of Data Products Group, IVANS Insurance Services.
“Q1 2020 experienced an increase in premium renewal rate change across all major commercial lines, and we expect to see marked change in the coming months as the industry responds to the COVID-19 pandemic.”
Commercial Property saw the highest Q1 rate increase at 5.14%, reaching a quarterly high in both February and March at 5.28%.
Next was Commercial Auto at 4.81%, with a high of 5.58% in February, followed by BOP at 4.65%, with finished the quarter at a high of 4.85% in March.
General liability also saw rate increases of 3.08% and Umbrella averaged 3.06%, while Workers’ Compensation reached -1.81%, up from a Q4 average of -2.84%.
Applied Systems also released the Q1 results of its rating index for the Canadian insurance industry’s premium rates, showing that average premiums for both Personal Auto and Personal Property lines increased versus the same quarter in 2019.
For Personal Auto, Alberta and the Atlantic provinces experienced the most significant increase in premium year-over-year at 15.1% and 13.1% respectively.
And looking at Personal Property, Quebec’s year-over-year premium change spiked at 24.1% while British Columbia’s annual premium change was the only negative change across both lines of business and all regions at -3.7%.