Premium renewal rate change by line of business for Q1 2020 highlights include:
- Commercial Auto: Premium renewal rate change averaged 4.81% for the quarter, with a quarter high in February at 5.58%. February marked the Q1 premium renewal rate change high for the third straight year.
- BOP: Quarter premium renewal rate change averaged 4.65%, representing an increase over last quarter’s average of 4.57%. BOP premium renewal rate change finished the quarter at 4.85% in March.
- General Liability: Q1 premium renewal rate change increased from Q4, averaging 3.08% change relative to 2.60%. The quarter premium renewal rate change reached its low of 3.02% in January, which was also the lowest month in Q1 2019.
- Commercial Property: Q1 premium renewal rate change increased to 5.14%, reaching a quarter high in both February and March at 5.28%.
- Umbrella: Q1 premium renewal rate change averaged 3.06% versus 2.61% in Q4. Umbrella premium renewal rate change for the quarter reached its high in March at 3.22%.
- Workers’ Compensation: Average premium renewal rate change for the quarter reached --1.81%, up from Q4 average of -2.84%.
“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.”
Released on a monthly basis, 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 in the insurance industry. Analyzing more than 120 million data transactions, the IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy. Inclusive of more than 32,000 agencies and 400 insurers and MGAs, the IVANS Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market. IVANS Index is available to agencies and insurers as part of Market Insights at markets.ivansinsurance.com.