Most Commercial Lines See Third-Quarter Premium Increases

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October 20, 2021

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Nearly all major commercial insurance lines experienced increases in average premium renewal rate during this year's third quarter, according to the IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.

Third-quarter results showed premium renewal rate changes for all major commercial lines increased year over year, except for workers compensation, which remained negative, according to IVANS.

Compared to the second quarter, the third quarter experienced increases in average premium renewal rate change across all major commercial lines of business except for commercial auto, which decreased.

Premium renewal rate changes by line of business in the third quarter of 2021 include the following.

  • Commercial auto. Third-quarter premium renewal rate averaged 4.32 percent, a decrease from the second quarter's average premium renewal rate of 4.51 percent. The quarter experienced its low premium renewal rate in August at 4.06 percent and its high in September at 4.70 percent.
  • Business owners policy (BOP). BOP premium renewal rate increased an average of 5.05 percent in the third quarter, up from 4.59 percent in the second quarter. The quarter had its lowest rate in July at 4.87 percent and hit its high in September at 5.18 percent.
  • General liability. The third-quarter general liability premium renewal rate averaged 4.21 percent, up from 3.95 percent in the second quarter. The line had its low renewal rate in July at 4.17 percent and its high in September at 4.25 percent.
  • Commercial property. The average premium renewal rate for commercial property increased quarter over quarter to 5.77 percent in the third quarter from 5.54 percent in the second quarter. The quarter's high renewal rate was in September at 5.89 percent, and its low was 5.62 percent in August.
  • Umbrella. Third-quarter premium renewal rate changes averaged 4.85 percent, up from 4.40 percent in the second quarter. The umbrella premium renewal rate saw its low of 4.73 percent in July and reached its high for the quarter in September at 4.95 percent.
  • Workers compensation. The workers compensation premium renewal rate averaged a 1.40 percent decrease in the third quarter, up from a second-quarter decrease of 1.74 percent. The quarter's low premium renewal rate was in July at a 1.93 percent decrease, while the high was in September with a 0.82 percent decrease.

"The Q3 results of the IVANS Index continue to show we are operating in a hard market," Kathy Hrach, vice president of product management, IVANS Insurance, said in a statement. "In fact, commercial auto, BOP, general liability, umbrella, and workers compensation reached their highest average premium renewal rate of the year in September."

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.

October 20, 2021