Year over year, all lines of property/casualty insurance business experienced an increase in average premium renewal rate, except workers compensation, which saw a premium decrease, according to the April results of the IVANS Index.
Month over month, April premium renewal rates experienced a positive change across the majority of the commercial lines products, including commercial auto, business owners policy, general liability and commercial property, IVANS reports. Umbrella and workers compensation saw negative changes.
The slight increases in premium renewal rates across nearly all major commercial lines of business are a response to “changing market dynamics,” according to Brian Wood, vice president of Data Products Group, IVANS Insurance Services. “As the pandemic changes the way the world does business, we will continually watch the numbers closely to see how changing market dynamics will impact the health of the industry,” Wood said.
Premium renewal rate change by line of business for April 2020 highlights include:
For the full first quarter, premium renewal rate change for BOP insurance averaged 4.65 percent and the average premium renewal rate change increased slightly from 4.57 percent recorded in the fourth quarter of 2019.
The premium renewal rate change for general liability insurance in the full first quarter averaged 3.08 percent. General liability had relatively minimal variability in premium rate change across the quarter relative to all other lines of business, IVANS found.
For workers compensation insurance in the first quarter, premium renewal rate change averaged -1.81 percent compared to -2.84 percent in Q4 of 2019.
Released on a monthly basis, IVANS Index analyzes more than 120 million data transactions by more than 32,000 agencies and 400 insurers and managing general agencies. The IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy. For example, if an insured paid $1,000 for a policy last year and $1,023 this year, IVANS Index would state that as a premium renewal rate change of 2.3 percent. The resulting is premium rate change trends reflective of those being experienced by all agencies and insurers across the U.S. insurance market. IVANS Index is available to agencies and insurers as part of Market Insights.
*This story ran previously in our sister publication Insurance Journal.