IVANS Q3 results: BOP and workers' compensation falter

The third quarter of 2018 saw an increase in premium renewal rate change across nearly all of the commercial lines of business compared to the second quarter, except for business owner policy (BOP) and workers’ compensation, according to fresh IVANS Index results.

“As the vast array of pricing drivers, including tariffs, storm losses, etc., play a part in the very dynamic nature of insurance pricing, the latest figures for the IVANS Index show a slight increase quarter over quarter and demonstrate a general hardening of the Commercial Lines market,” Brian Wood, vice president of IVANS Markets, said in a statement.

Related: Q2 experiences organic growth not seen since 2014, new report details

Breaking down the numbers

Here is the breakdown of the premium renewal rate changes across commercial lines in September, as compiled by IVANS:

• Commercial Auto: The third quarter premium renewal rate change increased with an average of 4.48%, ending at 4.50%.
• BOP: Quarter premium renewal rate change averaged 3.77% and finished at 3.57%.
• General Liability: The third quarter renewal rate change increased to 2.35% and ended the quarter in September at 2.29%.
• Commercial Property: There was an average rate of change of 3.34% in the third quarter, ending at 4.36%.
• Umbrella: The third quarter premium renewal rate change averaged 1.93% versus 1.77% in the second quarter. September premium renewal rate change finished at 2.30%.
• Workers’ Compensation: The third quarter showcased a decrease in premium renewal rate change, averaging at -2.76% as compared to -2.49% in the second quarter.

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 Q3 2018 IVANS Index is available here.

Related: IVANS Q2 results: Workers’ comp only line with negative rate change