The IVANS Index of premium rate renewals for the fourth quarter showed a slight rise in the average rate change across commercial auto, business owners, general liability, and commercial property compared to Q3, but a drop in the average change for umbrella and workers’ compensation policies.
According to the index, across all lines of business, December was one of the busiest months for rate changes during the year.
Premium renewal rate change by line of business for Q4 and the full year 2017 as measured by IVANS showed:
Commercial Auto: Premium renewal rate change averaged 3.11% for the quarter, with a quarter high in November at 3.24% and ending the quarter at its low of 3.00% in December. The year high and low premium renewal rate change occurred in back to back months, with June at 2.41% and July at 3.28%.
BOP: Quarter premium renewal rate change averaged 3.85%, representing an increase over last quarter’s average of 4.79%. BOP premium renewal rate change finished the quarter at 3.79% in December. The year high and low premium renewal rate change occurred in May and October at 4.49% and 3.57% respectively.
General Liability: Q4 premium renewal rate change increased from Q3, averaging 1.86% change relative to 1.74%. The quarter premium renewal rate change low reached 1.66% in November and ended the quarter in December at 2.13%.
Commercial Property: Q4 premium renewal rate change rose again quarter over quarter, with an average rate change of 2.91% as compared to 2.48% in Q3. The year low and high premium renewal rate change occurred in back-to-back months, with May at 1.46% and June at 2.22%.
Umbrella: Q4 premium renewal rate change averaged 1.34% vs. 0.47% in Q3. The year high and low premium renewal rate change occurred in June and September at 3.52% and 2.40% respectively.
Workers’ Compensation: Average premium renewal rate change reached a year low at -2.32%, down from Q3 average of -1.18%. The year low and high premium renewal rate change occurred in May and August at 0.81% and 1.56% respectively.
The IVANS Index measures the premium difference year over year for a single policy. It analyzes data from 30,000 agencies and 380 insurers and managing general agencies, according to IVANS, a division of Applied Systems.
Topics Trends Commercial Lines Business Insurance Pricing Trends
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