Industry Trends | Read Time: 3 minutes

IVANS Index: Premium Renewal Rate Change for August

September 14, 2017

Brian Wood 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: Get Ahead of Renewal Pricing for Your Clients.

Auto insurance losses a cause of pain for most insurers over the past 18 months

Fitch ratings has stated that “U.S. commercial auto insurance has evolved into a chronically underperforming product segment.” Increased losses have been attributed to more miles driven as the economy recovers and gas prices remain low, distracted driving caused by cell phones, higher repair costs, and higher bodily injury severity.

Despite consistent and worsening product performance results, commercial auto premium renewal rates have remained steady since the beginning of the year. In July, rates moved above 3% and remained above 3% in August. One of the largest drivers of the increase has been California. As noted in the graph above, California commercial auto is on the move upwards. Many other large states have remained steady.

Will California be an early leader that other states follow? With Harvey impacting Texas and Irma likely causing substantial losses in Florida, it is likely that other states may be following soon.

For further insights into premium renewal rate change across the industry, download the latest IVANS Index report now >

Brian Wood

Brian Wood

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, (a Trilogy company) which was acquired by Marsh & McLennan in 2001.