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The May "IVANS Index" Shows Positive Commercial Lines Premiums

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June 09, 2017
IVANS, a division of Applied Systems, recently announced the commercial lines premium results for May's IVANS Index: Premium Renewal Rate Index report. May 2017 marks the first time in several months that all major commercial product lines, including auto, business owner's policy (BOP), general liability, property, umbrella, and workers compensation, are in positive territory. Most notably, for the first time in 2017, workers compensation has moved into positive premium renewal rate change.

Commercial lines premium renewal rate change by line of business for May includes the following.

  • Commercial auto: 2.66 percent, up from 2.65 percent at the end of April

  • BOP: 4.49 percent, up from 4.02 percent the month prior 

  • General liability: 1.46 percent, down from 2.02 percent at the end of April

  • Commercial property: 2.78 percent, down from 2.95 percent the month prior

  • Umbrella: 0.81 percent, down from 1.04 percent at the end of April

  • Workers compensation: 0.58 percent, up from -0.19 percent the month prior

"Premium renewal rate change across the industry remained consistent, with significant year-over-year change being experienced in business owner's policy, general liability, and workers compensation," said Matt Foran, vice president of IVANS Markets.

Released on a monthly basis, IVANS Index is a data-driven report of current conditions and trends for premium rate renewal change of the most placed commercial lines of business in the insurance industry. Analyzing more than 120 million data transactions, the IVANS Index premium renewal rate change measures the year-over-year premium difference for a single consistent policy. Inclusive of more than 30,000 agencies and 380 insurers and managing general agents, the IVANS Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the US insurance market.

To derive the change in cost, IVANS uses policies that have the same insured, insurer, product type, policy number, expiration date, effective date, and producing agency. For example, if an insured paid $1,000 for a policy last year and $1,023 this year, IVANS Index would state that there is a premium renewal rate change of 2.3 percent. IVANS Index does not use exposure base change or claims experience. Policies with anomalous exposure changes or claims experience are removed.

Download the complete first quarter 2017 IVANS Index report.

For more on this topic, view the Captive.com article "'IVANS Index' Reveals Rising Commercial Lines Premiums in April."

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