Premium Increases Continue Across Most Major Lines in Third Quarter
October 14, 2020
Average premium renewal rates continued to increase year-over-year across most commercial insurance lines during the third quarter of 2020, according to the August IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.
Among the insurance coverage lines experiencing third-quarter increases in renewal rates were commercial auto, businessowners policy (BOP), general liability, umbrella, and commercial property, compared to the same period in 2019, according to IVANS. Workers compensation average premium renewal rate changes remained in negative territory, however.
Commercial auto, BOP, commercial property, and umbrella all experienced lower average premium renewal rate changes in the third quarter of this year than in the second quarter, IVANS said, while general liability and workers compensation experienced flat to slightly higher average premium renewal rate changes from the second quarter to the third.
Third quarter premium renewal rate changes included the following.
- Commercial auto: 4.46 percent increase, down from 4.72 percent in the second quarter with a quarter high of 5.10 percent in July and a low of 3.20 percent in August
- BOP: 4.76 percent increase, down from a 4.97 percent increase in the second quarter with a 4.89 percent increase in September
- General liability: 3.44 percent increase in the third quarter, up from 3.29 percent in the second quarter with a quarter low of 3.25 percent in September
- Commercial property: 5.30 percent increase in the third quarter, up from 5.29 percent in the second quarter with a quarter high of 5.48 percent in August
- Umbrella: 3.09 percent increase in the third quarter, down from a second-quarter average of 3.25 percent and a quarter high of 3.27 percent in August
- Workers compensation: A decrease of 2.41 percent in the third quarter, relatively flat compared to the second quarter
"Our data provides data-driven support of industry commentary with hardening premium renewal rate trends in Q3, albeit relatively flat relative to Q2," Brian Wood, vice president of Data Products Group, IVANS Insurance Services, said in a statement.
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 14, 2020