IVANS Index shows uptick in premium renewal rates across lines
Most major commercial lines ended 2021 with their highest average premium renewal rates since 2017.
Premium renewal rate changes across all major commercial lines increased during 2021’s fourth quarter, according to the IVANS Index.
However, premium rates for workers’ compensation continued to trend in the negative territory, moving from -1.4% in Q3 2021 to -1.16% in the year’s final quarter. Workers’ comp rates were consistently negative throughout all of this past year, according to IVANS Insurance. During 2021 premium renewal rates for workers’ comp reached a low in June (-2.06%) and a high in November (0.75%).
The IVANS Index also found:
- Commercial auto average premium renewal rate change average for Q4 was 4.69% compared with 4.32% the previous quarter.
- Business owners policies (BOP) saw a renewal rate change average of 5.58% during the final quarter of 2021, up from 5.05% in Q3 2021.
- General liability’s Q4 2021 premium renewal rate change increased quarter-on-quarter to reach 4.41%.
- Commercial property premium renewal rate change saw an average of 5.59% during Q4, compared with an average of 5.77% in Q3.
- Umbrella Q4’s rate change was 5.13% compared with 4.85% in Q3 2021.
IVANS Insurance reported BOP, general liability, commercial property and umbrella each ended 2021 with their highest average premium renewal rate change.
Commercial property rate changes were consistently higher than all other lines of business during the past year. The line’s 2021 high for premium renewal rate change occurred in December (6.14%), while the low happened in May (5.43%).
“Most major commercial lines of business ended the year with their highest average premium renewal rates since the IVANS Index began in 2017,” Kathy Hrach, vice president of product management, IVANS Insurance, said in a release. “As the average premium renewal rate changes become influenced by macroeconomic trends, like inflation and economic uncertainty, we will continue to track how these commercial lines of business fair in 2022.”
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