Ivans, a division of Applied Systems, has released the Q1 2024 results from the Ivans Index, showing a spike in premium renewal rate change for all major commercial lines of business except Workers’ Compensation, year over year.
The average premium renewal rate for commercial auto in Q1 2024 averaged 9.09%, an increase compared to Q4 2023’s average premium renewal rate of 8.79%. Even though the quarter began with the lowest rate change in January, averaging 7.04%, it experienced its highest rate in February, averaging 10.30%.
As for BOP, premium renewal rate increased by an average of 9.30% versus 9.12% year over year, and this quarter reached its highest premium renewal rate change in February, averaging 9.72%, and ended with its lowest rate of 8.84% in March.
The Q1 2024 for general liability premium renewal rate experienced a slight increase compared to Q4 2023, averaging 5.89% versus 5.83%. The quarter began with the lowest rate change in January, averaging 5.38%, and reached its highest rate in February, averaging 6.21%.
The average premium renewal rate change for commercial property increased during Q1 2024 at 10.52% versus 10.34% in Q4 2023. The lowest rate change was in January, averaging 10.30%, and reached its highest rate in February, averaging 10.77%.
The average premium renewal rate change for the umbrella experienced an increase during Q1 2024 at 6.81% versus 6.39% in Q4 2023m, with the lowest rate change in January, averaging 6.35%, and ended with its highest rate in March, averaging 7.10%.
Finally, workers’ compensation’s premium renewal rate change averaged -0.88% in Q1 2024, down from Q4 2023 at -0.64%. The quarter reached its highest premium renewal rate change in February, averaging -0.40% and ended with its lowest rate of -1.57% in March.
Kathy Hrach, Senior Vice President, Product Management, Ivans commented, “This quarter’s Ivans Index results show that the premium renewal rates continue to increase across all major commercial lines, signaling continued hard market conditions.
“The continued rate increases of the hard market is being closely tracked across the industry as renewals and remarketing become more and more important, and Ivans Index will continue to be a source of data on rate trends.”
