Year Over Year Average Commercial Renewal Rates Up: IVANS

IVANS®, a division of Applied Systems®, today announced the May 2021 results of the IVANS Index™, the insurance industry’s premium renewal rate index. Year over year, nearly all lines of business experienced an increase in average premium renewal rate, except Workers’ Compensation, which remained negative. Month over month, premium renewal rates for lines of business including Umbrella and Workers’ Compensation saw increases, while Commercial Auto, BOP, General Liability and Commercial Property experienced a downturn.

Source: IVANS | Published on June 9, 2021

premium increases down or flat

Premium renewal rate change by line of business for May 2021 highlights include:

  • Commercial Auto: 4.59%, down from 4.65% last month.
  • BOP: 4.48%, down from 4.64% at the end of April.
  • General Liability: 3.79%, down from 4.00% the month prior.
  • Commercial Property: 5.43%, down from 5.52% in April.
  • Umbrella: 4.31%, up from 4.29% the month prior.
  • Workers’ Compensation: -1.52%, up from -1.64% last month.

“This month’s IVANS Index demonstrates that Commercial Property rates continue to remain high while Workers’ Compensation premium renewal rates trend up, notably closer to flat compared to year’s prior,” said Kathy Hrach, vice president of Product Management, IVANS Insurance Services. “While month-over-month trends experienced a little softening in the market relative to last year, the market remains firm with expected increases in rates during renewals.”

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 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 33,000 agencies and 430 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 Q1 IVANS Index report here.