Premium Increases Continued Across Most Commercial Lines in Q3
October 13, 2023
While year-over-year average premium renewal rate changes varied among commercial insurance lines in this year's third quarter, all rates were up month-over-month in September, according to the IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.
The third-quarter IVANS Index results showed year-over-year premium renewal rate changes were up for all major commercial insurance lines of business except workers compensation. The third quarter saw an increase in average premium renewal rate changes across all major commercial lines, according to IVANS.
Premium renewal rate changes by the line of business during the third quarter include the following.
- Commercial auto. The third quarter average premium renewal rate for commercial auto averaged 7.01 percent, an increase from the second quarter average change of 6.50 percent. The quarter began with its lowest rate change in July at an average of 6.62 percent and ended with its highest rate in September at 7.40 percent.
- Business owners policy (BOP). The BOP premium renewal rate increased at an average of 7.74 percent during the third quarter versus 7.56 percent in the second quarter. The quarter saw its highest premium renewal rate change in August at 7.84 percent and ended with its lowest rate of 7.56 percent in September.
- General liability. The third-party premium renewal rate was up compared to the second quarter, averaging 5.43 percent versus 5.21 percent in the prior quarter. The third-quarter premium renewal rate experienced its quarterly high in August at 5.61 percent and its low in September at 5.32 percent.
- Commercial property. The average premium renewal rate change for commercial property increased 10.08 percent during this year's third quarter versus a 9.77 percent increase in the second quarter. The third quarter began with its lowest rate change in July at 9.74 percent, while the highest rate was in August at 10.56 percent.
- Umbrella. The average premium renewal rate change for umbrella saw a 5.29 percent increase during the third quarter versus a 5.12 percent increase during the second quarter. The quarter began with its lowest rate change in July at an average of 4.90 percent and saw its high in April at 5.76 percent.
- Workers compensation. The average workers compensation premium renewal rate decreased 0.98 percent during the third quarter, up from a 1.10 percent decrease during the second quarter. The third quarter saw its highest rate change in July at an average decrease of 0.52 percent and ended with its lowest rate in September at an average decrease of 1.37 percent.
"This quarter's IVANS Index shows that nearly across the board, the hard market continues as rate increases further hike north," Kathy Hrach, vice president of product management at IVANS, said in a statement.
The monthly IVANS Index is based on the analysis of data from more than 120 million commercial insurance transactions.
October 13, 2023