IVANS Q2 results: Workers' comp only line with negative rate change
The second quarter revealed a general uptick in premium renewal rate change across the commercial lines of business.
The second quarter revealed a general uptick in premium renewal rate change across the commercial lines of business compared to the first quarter in 2018, according to IVANS, a division of Applied Systems.
There was no change in the premium renewal rate for business owner policy (BOP). Workers’ compensation remains the only line of business experiencing negative rate change.
Related: IVANS Q1 results: Insurance premium renewals up across commercial lines
Reading through the lines
Here is the breakdown of the premium renewal rate changes across commercial lines, as compiled by IVANS:
- Commercial Auto: Premium renewal rate change averaged 4.32% for the quarter, ending at 4.38% for June.
- BOP: There was no change over last quarter’s average of 4.00%. BOP premium renewal rate change finished the quarter at 4.14% in June.
- General Liability: Premium renewal rate change reached 2.16% in April and ended the quarter in June at 2.35%.
- Commercial Property: Premium renewal rate change experienced an average rate change of 3.14% as compared to 3.11% in the first quarter.
- Umbrella: Premium renewal rate change averaged 1.77% versus 1.49% in the first quarter.
- Workers’ Compensation: Premium renewal rate change slightly decreased in the second quarter, averaging at -2.49% as compared to -2.47% in the first quarter.
“As the second quarter comes to a close, the IVANS Index shows that the Commercial Lines market continues to harden, providing guidance for agents to advise their clients on policy changes and market intelligence for insurers to support pricing strategies,” Brian Wood, vice president of IVANS Markets, said in a statement.
The IVANS Index is a data-driven monthly and quarterly report that forecasts current insurance business conditions and trends based on analysis of more than 120 million data transactions from more than 30,000 agencies and 380 insurers and MGAs. The complete Q2 2018 IVANS Index is available here.
Related: Cyber insurance premiums to outpace all others, Aon says