Premium Increases Continued Across Most Commercial Lines in August
September 10, 2021
Year-over-year, all commercial insurance lines except workers compensation continued to experience increases in average premium renewal rate in August, according to the IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.
Month-over-month, premium renewal rates rose for a number of commercial insurance lines in August including business owners policy (BOP), general liability, umbrella, and workers compensation, while commercial auto and commercial property experienced decreases.
Premium renewal rate changes by line of business for August 2021 include the following.
- Commercial auto—The average premium renewal rate was 4.06 percent, down from 4.19 percent in July.
- BOP—The average premium renewal rate increased to 5.10 percent in August from 4.87 percent the month prior.
- General liability—The average general liability renewal rate was 4.20 percent in August, up from 4.17 percent in July.
- Commercial property—The average premium renewal rate decreased to 5.62 percent in August from 5.80 percent in July.
- Umbrella—The average premium renewal rate for umbrella coverage increased to 4.88 percent in August from 4.73 percent the month prior.
- Workers compensation—The average premium renewal rate decreased 1.46 percent in August, up from a 1.93 percent decrease in July.
"The August results of the IVANS Index show that average premium renewal rates continue to experience some movement month-over-month," Kathy Hrach, vice president of product management, IVANS Insurance Services, said in a statement. "Year-over-year, the premium renewal rates continue to climb, which is consistent with macroeconomic inflationary trends, and we expect it to continue to be an indicator on the health of the industry."
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.
September 10, 2021