Ivans Index found the average premium renewal rate increased year-over year for all major commercial lines except workers’ compensation, but every line of business averaged rate increases at renewal during the last three months of 2023, compared to the prior quarter.
The monthly index provided by insurance software company Ivans, said four lines of business—business owner’s policy (BOP), general liability, commercial property, and umbrella—reached year-end highs on renewal rate through the last quarter 2023. Workers’ compensation reached its highest rate, above zero, in November, Ivans added.
“As we begin 2024, we’ll be watching the data to see how the hard market trends of 2023 carry into this year and understand the macroeconomic factors impact on renewals and where markets are investing to create the greatest return,” said Brad Boyer, chief product officer at Ivans, in a statement.
Commercial property led all lines of business with an average premium renewal rate increase of 10.34% during Q4 2023 compared to nearly 10.1% in Q3 2023. In December, renewals were up 10.67%—the highest monthly average rate renewal movement of the year for the line.
BOP and general liability also saw the highest monthly rate renewal increases for 2023 in December, up 9.72% and 6.16%, respectively. BOP premium renewal rate increased an average of 9.12% in Q4 2023 versus 7.74% in Q3 2023. For general liability, rates were up in Q4 5.83%—slightly over the average increase of 5.43% the prior quarter.
Umbrella renewal rate continued to rise in Q4 by an average of 6.39% versus 5.29% in Q3 2023.
For commercial auto, Q4 2023 average premium renewal rate averaged 8.79%. The average increase was just over 7% the quarter before.
In workers’ compensation, average premium renewals were up for the first time all year in November at 0.15%. Premium renewal rate change in workers’ comp averaged -0.64%, up from Q3 2023 at -0.99%.
Topics Trends Liability Commercial Lines Business Insurance Pricing Trends
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