The May IVANS Index shows that for the first time in several months, premium renewal rates in all major commercial insurance lines are in positive territory. Notably, May is the first time in 2017 that workers’ compensation moved into positive premium renewal rate change territory.
The IVANS Index shows that May premium renewal rate changes by line of business included:
- Commercial Auto: 2.66%, up from 2.65% at the end of April.
- Business Owner’s Policy (BOP): 4.49%, up from 4.02% the month prior.
- General Liability: 1.46%, down from 2.02% at the end of April.
- Commercial Property: 2.78%, down from 2.95% the month prior.
- Umbrella: 0.81%, down from 1.04% at the end of April.
- Workers’ Compensation: 0.58%, up from -0.19% the month prior.
Matt Foran, vice president of IVANS Markets, noted the “significant year-over-year change” in business owners, general liability and workers’ Compensation in particular.
The index for the first quarter found that insurance premium renewal rate change for the majority of standard commercial lines products including auto, business owners, general liability, property and umbrella remained in positive territory for the first quarter. Workers’ compensation was the one product that continued to maintain a negative premium renewal rate.
Similarly, the IVANS Index for April showed most standard commercial lines products had an uptick in premiums at renewal, with workers’ compensation again being the main exception. Business owners and commercial property policyholders saw the biggest premium increases in April.
The IVANS Index provides data-backed insights on premium renewal rate change, as opposed to anecdotal feedback provided in other industry surveys. It analyzes more than 120 million data transactions and measures the premium difference year-over-year for a single consistent policy. Its database includes data from more than 30,000 agencies and 380 insurers and MGAs. The results are reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market, according to IVANS, an Applied Systems company.
The IVANS Index is part of the company’s MarketInsights service.