Renewal Rates for Nearly All Commercial Lines Increased in October
November 10, 2021
Year over year, all lines of commercial insurance except workers compensation experienced increases in average premium renewal rate in October, 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 businessowners policy (BOP), commercial property, and umbrella, while renewal rates decreased for commercial auto, general liability, and workers compensation, IVANS reported.
Premium renewal rate changes by line of business in October include the following.
- Commercial auto: October's premium renewal rate increase of 4.64 percent was down from a 4.70 percent increase in September.
- BOP: The 5.24 percent renewal rate increase was up from 5.18 percent a month earlier.
- General liability: The general liability renewal rate increased 4.18 percent in October, down from a 4.25 percent increase in September.
- Commercial property: The renewal rate for commercial property increased 5.93 percent in October, up from September's 5.89 percent increase.
- Umbrella: The umbrella premium renewal rate increased 5.02 percent in October, up from a 4.95 percent increase in the prior month.
- Workers compensation: The premium renewal rate for workers compensation decreased 1.57 percent in October, down from a 0.82 percent decrease in September.
"October's results of the IVANS Index indicate a continued increase in average premium renewal rate changes year over year," Kathy Hrach, vice president of product management, IVANS Insurance Services, said in a statement. Ms. Hrach said the rates are in line with macroeconomic inflation trends, and indicated that the index should continue to mirror broader economic trends moving into the year-end renewal season.
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.
November 10, 2021