The Connected Business of Insurance
April 12, 2018
IVANS Index is a data-driven report of current conditions and trends for premium renewal rate change of the most placed commercial lines of business in the insurance industry. Data collected in the IVANS Index enables insurers to determine competitive rates and the most profitable lines of business for investment. To learn more about IVANS Index, read IVANS Index: Get Ahead of Renewal Pricing for Your Clients.
Q1 2018 Results Show Positive Uptick in Premium Renewal Rate Change Average Across Nearly All Lines of Business
The latest IVANS Index results for Q1 show that insurance industry premium renewal rates are up quarter-over-quarter across nearly all major commercial product lines, except Workers’ Compensation. Commercial Auto, Business Owner’s Policy, Commercial Property, Umbrella, and General Liability show positive results compared to Q4 2017; however, Workers’ Compensation demonstrated slightly negative premium renewal rate change during the quarter.
Key findings from the 2018 Q1 results include:
- Commercial Auto: Premium renewal rate change averaged 4.20% for Q1, ending at 3.87% in March.
- BOP: Quarter premium renewal rate change averaged 4.00%, representing an increase over last quarter’s average of 3.85%. BOP renewal rate change finished the quarter at 4.29%.
- General Liability: Q1 premium renewal rate change experienced an uptick at 2.01% compared to Q4 which averaged 1.86%. General Liability renewal rate reached 2.24% at the end of March.
- Commercial Property: Q1 premium renewal rate change increased quarter-over-quarter, with an average rate change of 3.11% as compared to 2.91% in Q4 of last year.
- Umbrella: Quarter premium renewal rate change spiked in March, finishing the quarter at 2.13% and increasing the Q1 average to 1.49% from 1.34% in Q4.
- Workers’ Compensation: Premium renewal rate change dipped again in Q1, averaging at -2.47% as compared to -2.32% in Q4.
Premium renewal rate change for Commercial Auto insurance averaged 4.20% in Q1. Insurance buyers in Florida continue to experience a premium renewal rate change higher than the average, with Q1 rate change for Florida buyers averaging 8.58% premium renewal rate change versus overall Commercial Auto at 4.20%.
March marked the quarter high for Business Owner’s Policy at 4.29% premium renewal rate change, with the low in February at 3.80%. BOP for real estate firms is increasing faster than other industries, with Q1 2018 rate change at 5.66% versus the national average at 4.00%.
Workers’ Compensation rate change averaged -2.47% in Q1 versus -2.32% in Q4 2017. February marks the lowest premium renewal rate change of the quarter at -3.61%, with March being the second lowest at -2.79%. Social services experienced more variable average premium renewal rate change for Workers’ Compensation than the industry average. In Q4 2017, social services averaged a 0.74% premium renewal rate change versus the national average of -2.32%.
Quarter-over-quarter, premium renewal rate change continues to show significant positive momentum across the majority of commercial lines. Analyzing more than 120 million data transactions, The IVANS Index continues to serve as a product and pricing tool for our insurer customers and provides the industry’s only data-driven insights for our agencies as they provide renewal guidance to their customers.