In the January 2024 results for the Ivans Index – the insurance industry’s premium renewal rate index – year over year, all major commercial lines experienced an increase in average premium renewal rates.
Ivans explained that month over month, Workers’ Compensation experienced an increase in premium renewal rate change, while Commercial Auto, Business Owner’s Policy (BOP), General Liability, Commercial Property, and Umbrella all witnessed decreases.
For Commercial Auto, Q423 average premium renewal rate averaged 8.79%, which was a solid increase compared to Q323’s average premium renewal rate of 7.01%. The quarter also began with the lowest rate change in October, averaging 8.52%, and reached its highest rate in November, averaging 9.19%.
As for BOP, premium renewal rate increased in Q423 with an average of 9.12% compared to 7.74% in Q323. At the same time, the quarter began with the lowest rate change in October, averaging 8.77%, and ended with its highest rate in December, averaging 9.72%.
Moving on to General Liability, Q423 premium renewal rate experienced an increase compared to Q323, averaging 5.83% compared to 5.43%. Ivans noted that Q423 premium renewal rate experienced its lowest in November at 5.65% and ended with its highest rate in December, sitting at 6.16%.
Then for Commercial Property, average premium renewal rate change experienced an increase during Q423 at 10.34% versus 10.08% in Q323. The quarter also experienced its lowest rate change in November, averaging 9.93%, and reached its highest rate in December, averaging around 10.67%.
In addition, average premium renewal rate change for Umbrella experienced an increase during Q423 at 6.39% versus 5.29% in Q323. Ivans also stated that the quarter began with the lowest rate change in October, averaging 6.22%, and ended with its highest rate in December, averaging around 6.62%.
And lastly, Workers’ Compensation premium renewal rate change averaged -0.64%, an improvement from Q323 at
-0.99%. The quarter also began with the lowest rate change in October, averaging -1.26%, and reached its highest rate in November, averaging 0.15%.
Released monthly, Ivans Index is 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 industry.
