Premiums Across Most Lines Continue Their Upward Trend in February
March 12, 2020
Year over year, nearly all lines of insurance business experienced an increase in average premium renewal rate in February, according to the February results of the IVANS Index, the premium renewal rate index compiled by IVANS, a division of Applied Systems.
The lone exception to the premium increase trend, according to IVANS, was workers compensation, which continued its negative trend.
Month over month, February saw the greatest average premium renewal increase in commercial auto and commercial property coverages, according to IVANS. Umbrella premiums experienced the most significant downward trend from the prior month.
Highlights of premium renewal rate changes by line of business in February include the following.
- Commercial auto—5.58 percent, up from 4.09 percent in January
- Businessowners policy—4.69 percent, up from 4.4 percent in January
- General liability—3.04 percent, up slightly from 3.02 percent the month prior
- Commercial property—5.28 percent, up from 4.86 percent in January
- Umbrella—2.89 percent, down from 3.08 percent the month prior
- Workers compensation— -1.85 percent, down from -1.63 percent in January
"Month over month, our data shows that average premium renewal rates continue to rise across major commercial lines, reflecting both in the data as well as the daily experiences of our agency and carrier partners," said Brian Wood, vice president of Data Products Group, IVANS Insurance Services, in a statement announcing the February results. "The IVANS Index continues to bring the intelligence insurers need to guide pricing strategies and for agencies to deliver more data-backed guidance to their customers regarding expected renewal rates."
Released on a monthly basis, IVANS Index is a data-driven report of current conditions and trends for premium rate renewal change of the most placed commercial lines of business in the insurance industry. Analyzing more than 120 million data transactions, the IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy.
Including more than 32,000 agencies and 400 insurers and managing general agents, the IVANS Inde reflects the premium rate change trends being experienced by all agencies and insurers across the US insurance market.
March 12, 2020