Continual Increase of Nearly All Premium Renewal Rates, According to IVANS
September 07, 2018
IVANS has announced the IVANS Index: Premium Renewal Rate Index August results. Bouncing back from last month's results of decreasing rate change across almost all lines of business, August results show positive change across nearly all major commercial lines except for commercial auto, which experienced slight negative change.
Premium renewal rate change by line of business for August 2018 highlights include the following.
- Commercial Auto: 4.42 percent, down from 4.51 percent at the end of July
- Businessowners Policy: 3.95 percent, up from 3.79 percent the month prior
- General Liability: 2.54 percent, up from 2.21 percent at the end of July
- Commercial Property: 3.54 percent, up from 3.03 percent the month prior
- Umbrella: 1.84 percent, up from 1.65 percent at the end of July
- Workers Compensation: -2.17 percent, up from -3.41 percent the month prior
"The latest results of the IVANS Index show a continual increase of nearly all premium renewal rates, except Commercial Auto which experienced a slight downtick this month," said Brian Wood, vice president of IVANS Markets. "This month's IVANS Index further demonstrates the year-over-year change from July to August shift in premium renewal rates following midyear renewals."
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 it 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.
The complete IVANS Index report is available on the IVANS website.
September 07, 2018