IVANS: Commercial Lines Renewal Rates Experience Positive Changes
March 07, 2019
IVANS has announced the IVANS Index: Premium Renewal Rate Index February 2019 results. Year over year, February results showed an increase in premium renewal rate change across all major commercial lines of business except workers compensation. Month to month, results showed an uptick in premium renewal rate change across commercial auto, general liability, commercial property and umbrella; conversely, businessowners policy, and workers compensation experienced a negative rate change month over month.
Premium renewal rate change by line of business for February 2019 highlights include the following.
- Commercial Auto: 4.61 percent, up from 4.57 percent in January
- Businessowners Policy: 3.94 percent, down from 4.23 percent the month prior
- General Liability: 1.81 percent, up from 1.16 at the end of January
- Commercial Property: 4.58 percent, up from 3.74 percent the month prior
- Umbrella: 3.06 percent, up from 2.17 percent in January
- Workers Compensation: -3.38 percent, down from -1.04 percent the month prior
"The latest IVANS Index figures showed a slight variance, with the most significant trend changes occurring with umbrella and workers compensation month over month," said Brian Wood, vice president of Data Products Group, IVANS Insurance Solutions.
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 32,000 agencies and 400 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.
March 07, 2019