Premium Increases Continued Across Most Commercial Lines in Q2
July 22, 2022
Premium renewal rates increased year over year for most commercial insurance lines during the second quarter of 2022, according to the Ivans Index, a regular premium renewal rate index compiled by the Ivans insurance exchange service.
The only exception was workers compensation, which saw a year-over-year decrease in premium renewal rates during the second quarter, Ivans reported.
Compared to this year's first quarter, average premium renewal rates increased for commercial auto, business owners policy (BOP), general liability, commercial property, and worker compensation, while umbrella experienced a decrease.
Premium renewal rate changes by the line of business during the second quarter of 2022 include the following.
Commercial auto. The second quarter premium renewal rate averaged 5.05 percent, an increase from the first quarter's 4.22 percent premium renewal rate change. The quarter saw its highest rate change in April at 5.2 percent and ended with its lowest rate change of 4.92 percent in June.
BOP. BOP premium renewal rates increased during the second quarter with an average of 5.69 percent, up from 5.32 percent during the first quarter. The second quarter saw its low premium renewal rate change in April at 5.56 percent and its high in June at 5.83 percent.
General liability. General liability saw the second quarter premium renewal rate change increase to an average of 4.76 percent in the second quarter, up from 4.3 percent during the first quarter. The second quarter premium renewal rate saw its low in April at 4.64 percent and its high in May at 4.85 percent.
Commercial property. The average premium renewal rate change for commercial property increased quarter over quarter to 6.4 percent in the second quarter from 6.16 percent in the first quarter. The quarter's premium renewal rate reached its low of 6.05 percent in April and its high in June at 6.67 percent.
Umbrella. The second quarter premium renewal rate change for umbrella coverage averaged 5.19 percent, dropping from 5.77 percent in the year's first quarter. The umbrella premium renewal rate change saw its low of 5.12 percent in May and its second quarter high of 5.29 percent in June.
Workers compensation. The workers compensation premium renewal rate change averaged a 0.73 percent decrease in the second quarter, up from the first quarter decrease of 1.23 percent. The second quarter premium renewal rate for workers compensation experienced its low of a 0.91 percent decrease in April and its high of a 0.43 percent decrease in June.
"This quarter's Ivans Index continues to show average premium renewal rate changes tracking alongside other hard market macroeconomic trends," Kathy Hrach, vice president of Product Management at Ivans, said in a statement.
July 22, 2022