Insurance Premium Increases Continue Across Major Lines during Q2
July 15, 2020
Average insurance premium renewal rates increased across most major commercial insurance lines in the second quarter of 2020 compared to the same period in 2019, according to the IVANS Index, a regular premium renewal rate index compiled by IVANS insurance exchange service.
Lines showing increases included commercial auto, businessowners policy (BOP), general liability, umbrella, and commercial property. The average workers compensation premium renewal rates remained negative, however, according to IVANS.
Businessowners policy, general liability, property, and umbrella average premium renewal rates also increased from the first quarter, IVANS reported. Commercial property continues to hit record premium renewal rate highs, IVANS said, experiencing the largest percentage jump of 5.51 percent in April.
Second-quarter premium renewal rate highlights by line of coverage, as reported by IVANS, include the following.
- Commercial auto: Premium renewal rate change averaged 4.72 percent for the quarter, with a quarterly high in April at 4.80 percent. The quarter's low for premium renewal rate change was in June at an average of 4.63 percent.
- Businessowners policy: Second-quarter premium renewal rate change averaged 4.97 percent, representing an increase over the first quarter's average of 4.65 percent. BOP premium renewal rate change finished the quarter at 4.64 percent in June.
- General liability: Second-quarter premium renewal rate change increased from the first quarter of 2020, averaging 3.29 percent in the just-ended quarter versus 3.08 percent during the year's first 3 months. The second-quarter premium renewal rate change reached its low of 3.23 percent in May, which is still higher relative to all average premium renewal rate changes for general liability experienced during the first quarter.
- Commercial property: Second-quarter renewal rate change increased to 5.29 percent, reaching a quarter—and year-to-date—high in April of 5.51 percent.
- Umbrella: Second-quarter premium renewal rate change averaged 3.25 percent versus 3.06 percent during the first quarter. The umbrella premium renewal rate change reached its high for the quarter in June at 3.56 percent.
- Workers compensation: Average premium renewal rate change was –2.41 percent in the second quarter, down from a first-quarter average of –1.81 percent.
Released on a monthly basis, the IVANS Index analyzes more than 120 million data transactions to measure premium renewal rate change year over year across the US market.
July 15, 2020