The Connected Business of Insurance
April 27, 2017
More than a year ago, the IVANS team asked agents and insurers, “What insight is missing in the industry that you truly need to better run your business and serve your clients?” The resounding response was policy renewal pricing guidance. With that feedback, we set out to provide the industry with a set of insights that started with the premium renewal rate change graph below, created after months of data collection, analysis and interpretation.
One of the most important responsibilities for agents is setting a client’s expectations as a renewal is on the horizon. It helps you increase retention while growing your book of business. The most important question that a client will ask is, “How much should I expect to pay this year.” Agents armed with the IVANS Index will be able to better prepare their clients for renewals and explain options as they become available.
The IVANS Index will be available to agents and insurers monthly. Agents will be able to access the insights via the IVANS website, at markets.ivansinsurance.com or through IVANS Market Appetite in their integrated agency management system (Applied Epic, Applied TAM, NASA, Xanatech).
Key findings from the report include:
- Commercial Auto: Premium renewal rate change averaged 2.71% for the quarter, ending at 2.61% for March; renewals have held steady above 2.5% and below 3.0% for the quarter.
- General Liability: Each month of Q1 demonstrated a consistent premium renewal rate change average, with 2.07% for January, 2.02% for February and 2.04% for March.
- Commercial Property: After reaching a premium renewal rate change of 2.71% at the end of 2016, premium renewal rate change fell in Q1 to an average of 2.66%.
As the industry’s largest digital distribution network of 30,000 agencies and over 380 insurers and MGAs, IVANS stands as the best source of industry renewal rate change insights.
Gain additional insights into current conditions and trends for premium renewal rate change by accessing markets.ivansinsurance.com.
Matt Foran, VP and general manager of IVANS Market Appetite, a division of Applied Systems, is responsible for the creation and strategic execution of the cutting edge distribution platform built for the commercial insurance industry. Prior to his current role, Matt was the CEO of EvoSure, which was acquired by Applied Systems in September 2015. Before co-founding EvoSure, Matt was the director of strategy for Zurich Specialty Products, a $2.5 billion business unit of Zurich Insurance Group, where he worked closely with the CEO and Senior Management to set overall strategic direction, develop and execute financial and operational plans, and lead execution of strategic initiatives. Previously, Matt served as assistant vice president of Marsh USA, with responsibilities including the initial formation of the Marsh & McLennan Agency, the Marsh Select Model, the restructuring of Marsh USA, and was a broker for healthcare and Fortune 500 firms. Matt was selected as a Global Rising Star by Reactions Magazine in 2011 and named in Insurance Business America magazine’s Hot 100 list for 2015.