Most Commercial Lines Continued To See Premiums Increase in Q3

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November 03, 2022 |

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The premium renewal rate change for all major commercial insurance lines increased year over year during the third quarter of 2022, except for workers compensation, which remained negative, according to the Ivans Index, a regular premium renewal rate index compiled by the Ivans insurance exchange service.

During the third quarter, average premium renewal rate increases were seen in businessowners policy (BOP), general liability, commercial property, and umbrella compared to the second quarter of this year, while commercial auto and workers compensation experienced decreases.

Premium renewal rate changes by the line of business during the third quarter include the following.

  • Commercial auto. The third-quarter premium renewal rate averaged 4.89 percent, a decrease from the second quarter's 5.05 percent. The quarter saw its lowest rate in July at an average 4.76 percent and ended with its high of 5.05 percent in September.
  • BOP. The BOP premium renewal rate increased to an average 6.45 percent in the third quarter, up from 5.69 percent in the second quarter. The quarter's low average premium renewal rate was 6.28 percent in July and the high was 6.63 percent in September.
  • General liability. The third-quarter premium renewal rate for general liability insurance increased to an average of 5.01 percent from 4.76 percent in the second quarter. The premium renewal rate experienced its third-quarter low in July at 4.65 percent and its high in September at 5.40 percent.
  • Commercial property. The average premium renewal rate change increased quarter over quarter to 6.95 percent in the third quarter from 6.40 percent in the second quarter. The commercial property premium renewal rate reached its third-quarter low of 6.57 percent in August and experienced its high in September at 7.65 percent.
  • Umbrella. The third-quarter premium renewal rate change averaged 5.21 percent, an increase from 5.19 percent in the second quarter. The umbrella premium renewal rate change hit its quarter high of 5.49 percent in July and experienced its low of 4.90 percent in August.
  • Workers compensation. The workers compensation premium renewal rate change averaged a 1.08 percent decrease in the third quarter, down from a second-quarter decrease of 0.73 percent. The quarter premium renewal rate change experienced its low of a 1.24 percent decrease in July and reached its high of a 0.97 percent decrease in August.

"The Q3 results indicate that we continue to operate in a hardening market," Kathy Hrach, vice president of product management at Ivans, said in a statement. "Ongoing macro forces, as well as recent weather events, all continue to influence rates and as we look to the fourth quarter, we will continue to track how these commercial lines of business end the year and head into uncertain economic times."

November 03, 2022