Ivans: Most premium renewal rates continue to increase
Worker’s comp and umbrella insurance policies are the only lines of business that failed to show YOY premium growth in Q2 2023.
All major commercial lines of business showed year-over-year premium growth during Q2 2023 except worker’s comp and umbrella insurance policies, according to the most recent Ivans Index™.
“The Q2 results of the Ivans Index show that the premium renewal rates continue to increase in line with other pricing trends in the broader macro environment,” Kathy Hrach, vice president of Product Management for Ivans, said in a press release. “As we enter the second half of the year, the Index will see how changing regulatory environments and hurricane season impact premium renewal rates and carrier and agent investment in certain lines of business based on profitability opportunity.”
The 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. The analysis includes more than 120 million transactions at more than 34,000 agencies and 450 insurers and MGAs.
Here are the major takeaways from the Ivans Q2 2023 report:
- Commercial auto: Q2 2023 average premium renewal rate averaged 6.50%, an increase compared to Q1 2023’s average premium renewal rate of 5.85%. The quarter began with the lowest rate change in April, averaging 6.16%, and reached its highest rate in May, averaging 6.80%.
- Business owner’s policies: BOP premium renewal rate increased in Q2 2023 with an average of 7.56% versus 7.12% in Q1 2023. The quarter reached its lowest premium renewal rate change in May, averaging 7.44% and ended with its highest rate of 7.64% in June.
- General liability: Second quarter 2023 premium renewal rate experienced a slight decrease compared to Q1 2023, averaging 5.21% versus 5.23%. Q2 2023 premium renewal rate experienced its low in May at 4.56% and reached its high in June at 5.58%.
- Commercial property: Average premium renewal rate change for Commercial Property experienced an increase during Q2 2023 at 9.77% versus 8.89% in Q1 2023. The quarter began with the highest rate change in April, averaging 10.09%, and reached its lowest rate in June, averaging 9.34%.
- Umbrella: Average premium renewal rate change for Umbrella experienced an increase during Q2 2023 at 5.12% versus 5.08% in Q1 2023. Premium renewal rate change in Q2 2023 reached its low of 4.36% in May and experienced its high in June at 5.92%.
- Workers’ comp: Workers’ Compensation premium renewal rate change averaged -1.10%, up from Q1 2023 at -1.36%. Premium renewal rate change in Q2 2023 reached its low of -1.37% in May and ended the quarter at its high of -0.71%.
The complete report is available to download.
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