Ivans: Q1 2024 renewal rates inch up
The results underscore the industry's ongoing hard market conditions.
Average commercial-insurance premium renewal rates for all major commercial lines of business except workers’ comp remain up year over year, according to the latest report from Ivans.
When surveying renewal rates from the previous quarter, all major commercial lines experienced an increase in renewals.
“This quarter’s Ivans Index results show that the premium renewal rates continue to increase across all major commercial lines, signaling continued hard market conditions,” Kathy Hrach, the company’s senior vice president of Product Management, said in a press release. “The continued rate increases of the hard market is being closely tracked across the industry as renewals and remarketing become more and more important, and Ivans Index will continue to be a source of data on rate trends.”
Here’s a look at the Q1 2024 renewal-rate details based on line of business:
- Commercial auto: Q1 2024 average premium renewal rate averaged 9.09%, an increase compared to Q4 2023’s average premium renewal rate of 8.79%. The quarter began with the lowest rate change in January, averaging 7.04%, and experienced its highest rate in February, averaging 10.30%.
- BOP: BOP premium renewal rate increased in Q1 2024 with an average of 9.30% versus 9.12% in Q4 2023. The quarter reached its highest premium renewal rate change in February, averaging 9.72% and ended with its lowest rate of 8.84% in March.
- General liability: First quarter 2024 premium renewal rate experienced a slight increase compared to Q4 2023, averaging 5.89% versus 5.83%. The quarter began with the lowest rate change in January, averaging 5.38%, and reached its highest rate in February, averaging 6.21%.
- Commercial property: Average premium renewal rate change for commercial property experienced an increase during Q1 2024 at 10.52% versus 10.34% in Q4 2023. The quarter began with the lowest rate change in January, averaging 10.30%, and reached its highest rate in February, averaging 10.77%.
- Umbrella: Average premium renewal rate change for umbrella experienced an increase during Q1 2024 at 6.81% versus 6.39% in Q4 2023. The quarter began with the lowest rate change in January, averaging 6.35%, and ended with its highest rate in March, averaging 7.10%.
- Workers’ compensation: Workers’ compensation premium renewal rate change averaged -0.88% in Q1 2024, down from Q4 2023 at -0.64%. The quarter reached its highest premium renewal rate change in February, averaging -0.40% and ended with its lowest rate of -1.57% in March.
Released monthly, the Ivans Index is a data-driven report gleaned from millions of insurance transactions that reflects current insurance-industry conditions and trends for premium rate renewal change. It does track personal-insurance products.
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