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Positive Commercial Lines Premiums Continue in July, According to "IVANS"

Business Woman Drawing Growth Chart 480 x 377
August 03, 2017

IVANS, a division of Applied Systems, has announced the results of July’s IVANS Index: Premium Renewal Rate Index. In July 2017, premium renewal rate change for the majority of standard commercial lines products, including auto, businessowners policy (BOP), general liability, property, and umbrella, remains in positive territory. Workers compensation is the one product that remains in the negative premium renewal rate, dipping below -1.00 percent for the first time this year.

Premium renewal rate change by line of business for July includes the following.

  • Commercial auto: 3.28 percent, up from 2.41 percent at the end of June

  • BOP: 3.65 percent, down from 4.11 percent the month prior

  • General liability: 1.85 percent, down from 2.22 percent at the end of June

  • Commercial property: 2.45 percent, down from 3.52 percent the month prior

  • Umbrella: 1.40 percent, up from 0.97 percent at the end of June

  • Workers compensation: -1.41 percent, down from -0.86 percent the month prior

“The latest IVANS Index figures show that premium renewal rate change across the industry remained consistent, with commercial auto and umbrella premium renewal rate change experiencing the greatest positive increase, while workers compensation continues to trend more negatively,” said Matt Foran, vice president of IVANS Markets. “IVANS Index continues to lead the industry in providing data on expected premium renewal rates, providing insurers and agencies insights for their pricing and customer service models.

"These market insights further enable agencies to provide their clients with advice on expected renewal rates, as well as support insurer and [managing general agent (MGA)] pricing and product strategies.”

The IVANS Index, released monthly, is a data-driven report on 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 premium difference year over year for a single, consistent policy. It includes more than 30,000 agencies and 380 insurers and MGAs, and reflects premium rate change trends experienced by all agencies and insurers across the US insurance market. IVANS Index is available to agencies and insurers as part of Market Insights.

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.

For previous IVANS results, read the Captive.com articles "June IVANS Index Shows Commercial Lines Premiums Remain Up, Workers Comp Moves into Negative Territory," "The May IVANS Index Shows Positive Commercial Lines Premiums," and "IVANS Index Reveals Rising Commercial Lines Premiums in April."

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