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The Connected Business of Insurance

IVANS Index: 2018 Year-End Results for Premium Renewal Rate Change

January 31, 2019

by Brian Wood

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: Industry Insights to Help You Run Your Business Better.

Positive Uptick in Premium Renewal Rate Change Average Across Nearly All Lines of Business
The latest IVANS Index results for Q4 and year-end 2018 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 Q3 2018. Workers’ Compensation remains the only line of business experiencing a negative rate change, which was consistent throughout all of 2018.

Q4 and 2018 key findings in premium renewal rate change include:

  • Commercial Auto:  2018 average premium renewal rate change for Commercial Auto was higher compared to 2017 throughout the entire year, peaking in September with an average premium renewal rate change at 4.50% in 2018 versus 2.55% in 2017.
  • BOP:  Quarter premium renewal rate change averaged 4.23%, representing an increase over last quarter’s average of 4.15%. BOP premium renewal rate change finished the quarter at 4.23% in December.
  • General Liability:  General Liability started out 2018 in January and February with lower average premium renewal rate than 2017, averaging 0.44% higher from March through the remainder of 2018 across the same period of time the year prior.
  • Commercial Property:  Q4 premium renewal rate change rose again quarter over quarter, with an average rate change of 3.74% as compared to 3.34% in Q3. Commercial Property premium renewal rate change reached its high for 2018 in Q4 at 3.95% in December.
  • Umbrella:  Umbrella premium renewal rate change reached its high for 2018 in Q4 at 2.76% in November. 2018 average premium renewal rate change for Umbrella was higher compared to 2017, averaging .70% higher year over year.
  • Workers’ Compensation:  2018 average premium renewal rate change for Workers’ Compensation was consistently more negative compared to 2017, with the exception of December, which ended at -2.66% in 2018 versus -2.92% in 2017.


Relative to other lines of business, BOP’s average premium renewal rate experienced the most variability between 2018 and 2017.


Workers’ Comp average premium renewal rate change reached -3.04% in Q4 versus -2.76% in Q3. 2018 was consistently more negative compared to 2017, except for December, which ended at -2.66% in 2018 versus -2.92% in 2017.

The end of 2018 experienced the greatest change in premium renewal rates from the year prior for nearly all major commercial lines products. As we begin 2019, the IVANS Index will continue to provide data-driven insights into the health of the industry, enabling brokerages to give more accurate premium renewal guidance to customers and serving as a valuable reference to insurers when determining pricing strategies.

Analyzing more than 120 million data transactions, the IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy. Inclusive of more than 32,000 agencies and 400 insurers and MGAs, the IVANS Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market.

For further insights into premium renewal rate change across the industry, download the Q4 and 2018 year-end IVANS Index report >

Headshot of man in casual attire smiling.Brian Wood, Vice President of Data Products Group for IVANS, develops innovative and data-driven applications, tools and services for the insurance industry. Prior to this position, he co-founded EvoSure, which was acquired by Applied in Sept 2015. Brian spent 10 years with Marsh & McLennan as Senior Vice President of Strategy and Business Analysis where he developed global insurance distribution platforms. Brian began his career in insurance building the first company to bind insurance online, insuranceOrder.com (a Trilogy company) which was acquired by Marsh & McLennan in 2001.

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