Premium renewal rate change by line of business for Q4 and 2020 highlights includes:
Commercial Auto: Premium renewal rate change averaged 4.46% for the quarter and ended the year at 5.03% in December, which was also the quarter high. The quarter low was in November at 3.93%.
BOP: Fourth quarter premium renewal rate change averaged 4.57%, representing a decrease over last quarter’s average of 4.76%. BOP premium renewal rate change finished the quarter at 4.64% in December.
General Liability: Q4 premium renewal rate change increased from Q3, averaging 3.47% relative to 3.44%. The quarter premium renewal rate change reached its low of 3.38% at the start of the quarter in October and ended the year in December with the quarter high of 3.59%.
Commercial Property: Q4 premium renewal rate change rose again quarter over quarter, with an average rate change of 5.62% as compared to 5.30% in Q3. Commercial Property premium renewal rate change reached its high for 2020 in December at 5.68%.
Umbrella: Q4 premium renewal rate change averaged 3.46% versus 3.09% in Q3. Umbrella premium renewal rate change reached its quarter low in November at 2.82% and its high in December at 3.79%.
Workers’ Compensation: Average premium renewal rate change for the quarter reached -2.13%, up from the Q3 average of -2.41%. Workers’ Compensation ended the year in December at its quarter high at -1.70%.
“While we saw variable changes for all lines of business in 2020, average premium renewal rates for Q4 trended higher than those of Q3, with the exception of BOP which increased and Commercial Auto which remained virtually the same,” said Kathy Hrach, vice president of Product Management, IVANS Insurance. “As we make our way into 2021, IVANS Index will provide insights on how the macroeconomic trends of the ongoing pandemic and policy changes will impact the insurance industry, providing actionable intelligence for agencies and insurers on policy and renewal conversations and pricing strategies.”
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.
Download the complete Q4 and Year-End 2020 IVANS Index report here.