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.
Q2 Premium Renewal Rate Change Remains Consistent
Premium renewal rate change across the industry remained consistent for the quarter, with greater variability experienced by General Liability and Workers’ Compensation insurance. The IVANS Index Q2 results show a slight uptick across Business Owner’s Policy, Commercial Property, and Workers’ Compensation compared to Q1. However, Workers’ Compensation moved back into negative territory at the end of Q2 following positive territory in May.
This quarter’s key findings include:
- Business Owner’s Policy (BOP): Quarter premium renewal rate change averaged 4.21%, representing an increase over last quarter’s average of 3.89%. BOP premium renewal rate change finished the quarter at 4.11% in June.
- Commercial Property: Q2 reversed the downward premium renewal rate change trend of Q1, with rates moving to 3.52% in June from an average of 2.66% in Q1.
- Workers’ Compensation: Q2 experienced the first positive premium renewal rate change of 2017 in May at 0.58%, but quarterly average remained in negative territory at -0.16%.
Premium renewal rate change for Business Owner’s Policy (BOP) averaged 4.21% in Q2, with May marking the quarter high at 4.49% and April marking the quarter low at 4.02%. California BOP buyers have moved upwards to 6.47% premium renewal rate change in June vs. the average of 4.11% across all states. In the past quarter, California buyers have averaged 5.50% premium renewal rate change vs. the average of 4.21% across all states.
Workers’ Compensation premium renewal rate change averaged -0.16% in Q2 vs. -0.48% in Q1, with a six month average of -0.32%. In May, renewals experienced a temporary spike above zero, but quickly returned to negative territory at -0.86% in June.
IVANS Index continues to provide unique data insights on premium renewal trends that are influencing renewal and pricing strategies. IVANS Index is available to agencies and insurers as part of Market Insights at markets.ivansinsurance.com.