The second quarter showed a general uptick in premium renewal rate change across the commercial insurance lines of business compared to the first quarter 2018. The upward movement was seen in commercial auto, general liability, commercial property and umbrella, according to the latest IVANS Index.
Renewal rates for business owners policies (BOP) did not change, while workers’ compensation remained the only line with a negative rate change.
According to the IVANS Index, premium renewal rate change activity by line of business for Q2 2018 included:
- Commercial Auto: Premium renewal rate change averaged 4.32% for the quarter, ending at 4.38% for June.
- BOP: Quarter premium renewal rate change averaged 4.01%, representing no change over last quarter’s average of 4.00%. BOP premium renewal rate change finished the quarter at 4.14% in June.
- General Liability: The quarter premium renewal rate change reached 2.16% in April and ended the quarter in June at 2.35%.
- Commercial Property: Q2 premium renewal rate change experienced an increase quarter over quarter, with an average rate change of 3.14% as compared to 3.11% in Q1 2018.
- Umbrella: Q2 premium renewal rate change averaged 1.77% versus 1.49% in Q1 2018.
- Workers’ Compensation: Premium renewal rate change slightly decreased in Q2, averaging at -2.49% as compared to -2.47% in Q1 2018.
“As the second quarter comes to a close, the IVANS Index shows that the commercial lines market continues to harden, providing guidance for agents to advise their clients on policy changes and market intelligence for insurers to support pricing strategies,” said Brian Wood, vice president of IVANS Markets.
Released on a monthly basis, IVANS Index measures the premium difference year over year for a single consistent policy. It reviews transactions of more than 30,000 agencies and 380 insurers and MGAs and is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market. IVANS is a division of Applied Systems.
Source: IVANS Index
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