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"IVANS Index" November Results Show Continued Month-to-Month Variance

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December 12, 2017

According to IVANS, an Applied Systems division, November's results for IVANS Index: Premium Renewal Rate Index show that the premium renewal rate change for the majority of standard commercial lines products remains in positive territory. As with recent months' results, workers compensation continues to stay in negative terrain. From month to month, commercial auto, business owners policy (BOP), and workers compensation trended upwards, while the remaining lines of business demonstrated a decline in premium renewal rate change.

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

  • Commercial auto: 3.24 percent, up from 3.10 percent at the end of October

  • BOP: 3.99 percent, up from 3.57 percent the month prior

  • General liability: 1.66 percent, down from 1.79 percent at the end of October

  • Commercial property: 2.78 percent, down from 2.83 percent the month prior

  • Umbrella: 1.19 percent, down from 1.34 percent at the end of October

  • Workers compensation: -1.81 percent, up from -2.24 percent the month prior

"The latest IVANS Index figures demonstrat[e] continued variance month to month … with premium renewal rate change across the industry remaining mainly positive," said Matt Foran, vice president of IVANS Markets. "As we close in on year-end and renewal season, IVANS Index will provide guidance for agents advising clients on policy changes and insurers with market intelligence to support pricing strategies."

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. Based on analysis of 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 managing general agents 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 IVANS's "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.

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