All major commercial lines premium renewal rates were higher in July than in June, except commercial property which decreased, according to the latest monthly Ivans Index.
Year over year, commercial auto, business owners, general liability, commercial property and umbrella experienced increasing average premium renewal rates, while premium renewal rates decreased for workers’ compensation.
Ivans reports that premium renewal rate change by line of business for July 2024 include:
- Commercial Auto: 9.79%, up from 9.66% last month.
- BOP: 8.71%, up from 8.37% at the end of June.
- General Liability: 4.24%, up from 4.07% the month prior.
- Commercial Property: 11.80%, down from 12.66% in June.
- Umbrella: 8.43%, up from 8.25% the month prior.
- Workers’ Compensation: -1.32%, up from -1.51% last month.
Released monthly, the Ivans Index analyzes more than 120 million data transactions for the most placed commercial lines of business to measure the premium difference year over year for a single consistent policy. The data is inclusive of more than 38,000 agencies and 650 insurers and managing general agencies.
Q2 Index
On July 25, Ivans released its index for the second quarter showing general liability and workers’ compensation were the only major commercial lines to experience a decrease in average premium renewal rate compared to Q1 2024, with all other major lines experiencing an increase in Q2 2024.
“This quarter’s Ivans Index results show that we continue to operate in hard market conditions,” said Kathy Hrach, senior vice president of product management for Ivans. “We will continue to track how macroeconomic trends, severe weather events, and the shifting political landscape influence rates as we enter the second half of 2024.”
Premium renewal rate change by line of business for Q2 2024 included:
- Commercial Auto: Q2 2024 average premium renewal rate averaged 9.28%, an increase compared to Q1 2024’s average premium renewal rate of 9.09%. The quarter began with the lowest rate change in April, averaging 8.17%, and experienced its highest rate in May, averaging 9.97%.
- BOP: BOP premium renewal rate increased slightly in Q2 2024 with an average of 9.49% versus 9.30% in Q1 2024. The quarter began with the lowest rate change in April, averaging 7.94%, and reached its highest rate in May, averaging 12.14%.
- General Liability: General Liability premium renewal rate change averaged 4.86% in Q2 2024, down from Q1 2024 at 5.89%. The quarter reached its highest premium renewal rate change in May, averaging 5.76% and ended with its lowest rate of 4.06% in June.
- Commercial Property: Average premium renewal rate change for Commercial Property experienced a slight increase during Q2 2024 at 10.86% versus 10.52% in Q1 2024. The quarter reached its lowest rate change in May, averaging 9.94%, and ended with its highest rate in June, averaging 12.68%.
- Umbrella: Average premium renewal rate change for Umbrella experienced a significant increase during Q2 2024 at 9.62% versus 6.81% in Q1 2024. The quarter reached its highest premium renewal rate change in May, averaging 11.09% and ended with its lowest rate of 8.24% in June.
- Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -1.28% in Q2 2024, down from Q1 2024 at -0.88%. The quarter began with the lowest premium renewal rate change in April, averaging -2.16%, and reached its highest rate in May, averaging -0.20.
Source: Ivans, a division of Applied Systems.
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