Nearly All Commercial Lines Saw Year-over-Year Premium Increases in Q1

Premium renewal rate changes for all major lines of commercial insurance except workers compensation were up year over year during the first quarter of 2023, according to the Ivans Index, a regular premium renewal rate index compiled by the Ivans insurance exchange service.

The first quarter saw increases in average premium renewal rate changes for commercial auto, business owners policy (BOP), commercial property, umbrella, and workers compensation compared to the fourth quarter of 2022. General liability experienced a decrease in average premium renewal rates in the first quarter from the prior quarter.

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

• Commercial auto. The first quarter premium renewal rate change averaged 5.58 percent, up from the fourth quarter of 2022's average premium renewal rate increase of 5.62 percent. The quarter saw its lowest rate in February with an average 5.64 percent increase and ended with its highest rate at 6.07 percent in March.
• BOP. The BOP premium renewal rate experienced an average 7.12 percent increase during the first quarter versus a 7.01 percent increase in the prior quarter. The quarter started with its lowest premium renewal rate change at 6.87 percent and reached its highest level in March with an average increase of 7.31 percent.
• General liability. The first quarter premium renewal rate change decreased from the prior quarter, averaging 5.23 percent versus 5.49 percent in the fourth quarter of 2022. The first quarter premium renewal rate change for general liability hit its low in March at 4.98 percent and its high in February at 5.37 percent.
• Commercial property. The average premium renewal rate change for commercial property increased quarter over quarter, averaging 8.89 percent in the first quarter versus 7.95 percent during the fourth quarter of 2022. The first quarter premium renewal rate change for commercial property reached its low of 8.67 percent in January and experienced its high in March at 9.14 percent.
• Umbrella. The first quarter average premium renewal rate change of 5.08 percent was up from a 4.94 percent increase during the prior quarter. The umbrella premium renewal rate change experienced its low in March at 4.67 percent and its high of 5.59 percent in January.
• Workers compensation. The premium renewal rate change for workers compensation averaged a 1.36 percent decrease during the first quarter, up from a 1.48 percent decrease during the fourth quarter of 2022. The quarter's premium renewal rate change for workers compensation reached its high of a 0.9 percent decrease in February and started the quarter with its low of a 1.85 percent decrease in January.

The monthly Ivans Index is based on the analysis of data from more than 120 million commercial insurance transactions.