Most Business Insurance Renewal Rate Changes Remain High: Ivans Index

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Premium renewal rate changes in all major lines of business increased year-over-year, with the exception of the workers’ compensation line, which remained negative, according to Ivans Index’s second-quarter results.

Compared to Q1 2022, the index showed an increase in the Q2 average premium renewal rate change for commercial auto, business owner policy (BOP), general liability, business property and workers’ compensation, while a decrease for umbrellas.

The change in the extension rate of the surcharge by activity area for the highlights of the second quarter of 2022 is:

  • Commercial Vehicles: Q2 average premium renewal rate change averaged 5.05%, up from Q1 2022 average premium renewal rate change of 4.22%. The quarter started with the highest interest rate change in April, averaging 5.2%, and ended in June with the lowest change of 4.92%.
  • Business Owners Rules: The change in the BoP bonus extension rate increased by an average of 5.69% in the second quarter compared to 5.32% in the first quarter of 2022. The quarterly premium rollover rate change fell to a low of 5.56% in April and ended the quarter at a high of 5.83%.
  • General Liability: The change in Q2 premium renewal rate compared to Q1 2022 increased, averaging 4.76% versus 4.3%. The second quarter premium renewal rate hit a low of 4.64% in April and a high of 4.85% in May.
  • Commercial Real Estate: The change in the average premium renewal rate for commercial real estate increased by 6.4% quarter-over-quarter compared to 6.16% in Q1 2022. The change in the quarterly premium renewal rate reached a low of 6.05% in April and a high of 6.67% in June.
  • Umbrella: Q2 premium renewal rate change averaged 5.19%, down from 5.77% in Q1 2022. The change in the umbrella premium renewal rate was the lowest in May (5.12%) and reached a quarterly high of 5.29% in June.
  • Workers’ Compensation: The change in the workers’ compensation award renewal rate averaged -0.73% compared to Q1 2022 of -1.23%. Quarterly Premium Extension Rate Change hit a low of -0.91% in April and closed the quarter at a high of -0.43%.

“This quarter’s Ivans Index continues to show changes in the average premium renewal rate tracking along with other tough market macroeconomic trends,” said Kathy Hrach, vice president of Product Management at Ivans.

The Ivans Index is a data-driven report on current conditions and trends in premium renewal rate changes across the insurance industry’s most closely held lines of business. By analyzing more than 120 million data transactions, the Ivans Index Premium Renewal Rate Change measures the difference in premiums from year to year for a single consistent policy.

Source: Ivans

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