IVANS: Commercial Lines Renewal Rates Reflect Variable Changes

A green arrow showing a gradual rise and a red arrow showing a rise and then a sharp fall

December 14, 2018 |

A green arrow showing a gradual rise and a red arrow showing a rise and then a sharp fall

IVANS has announced the IVANS Index: Premium Renewal Rate Index November 2018 results. For the first time this year, rate changes are split evenly, with an uptick in premium renewal rate across businessowners policy, commercial property, and umbrella, while commercial auto, general liability, and workers compensation experienced a downward shift.

Premium renewal rate change by line of business for November 2018 highlights include the following.

  • Commercial Auto: 4.66 percent, down from 4.81 percent in October
  • Businessowners Policy: 4.14 percent, up from 4.08 percent the prior month
  • General Liability: 2.65 percent, down from 2.74 percent in October
  • Commercial Property: 3.76 percent, up from 3.51 percent the month prior
  • Umbrella: 2.76 percent, up from 2.20 percent in October
  • Workers Compensation: -3.25 percent, down from -3.20 percent the month prior

"The IVANS Index indicates the premium renewal rate change across the industry show mixed results, with the greatest year-over-year change being experienced by Commercial Property and Umbrella," said Brian Wood, vice president of Data Products Group. "As we close in on year-end and renewal season, the IVANS Index will be a guiding tool for agents to advise clients on expected renewal rates and insurers to support their pricing strategies into 2019."

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.

December 14, 2018