The Connected Business of Insurance
April 09, 2019
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: Industry Insights to Help You Run Your Business Better.
First Quarter of 2019 Experiences Increase Across Nearly All Major Commercial Lines Products
Q1 results showed an increase in premium renewal rate change average across Commercial Auto, Business Owner’s Policy, Umbrella, and Commercial Property compared to Q4; however, General Liability renewal rate change experienced a decrease and Workers’ Compensation average premium renewal rate change dropped and remained in negative territory, consistent with the year-end 2018 results. Notably, Commercial Auto, BOP, Commercial Property and Umbrella experienced higher average premium renewal rate change from the quarter prior.
Highlights from Q1 2019 results include:
- Commercial Auto: Averaged 4.53% for the quarter. February marked the Q1 premium renewal rate change high for both 2018 and 2019.
- BOP: First quarter averaged 4.19%, representing an increase over last quarter’s average of 4.00%.
- General Liability: Q1 decreased from Q4, averaging 1.67% change relative to 2.54%.
- Commercial Property: Q1 increased to 4.24%, reaching a quarter high in February at 4.58%.
- Umbrella: Q1 averaged 2.54% versus 2.42% in Q4. Umbrella premium renewal rate change for the quarter reached its high in February at 3.06%.
- Workers’ Compensation: Average premium renewal rate change for the quarter reached -2.95%, down from Q4 average of -3.04%.
Similar to the end of 2018, premium renewal rates experienced a continued increase compared to the year prior, with the exception of Workers’ Compensation which experienced a downward trend. The IVANS Index remains the only index consisting of industry-wide transactions and a top tool for agents as they provide guidance to clients and for insurers to intelligently use data for their business decisions, like product focus areas and pricing.
Analyzing more than 120 million data transactions, the IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy. Inclusive of more than 32,000 agencies and 400 insurers and MGAs, the IVANS Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market.
For further insights into premium renewal rate change across the industry, download the Q1 2019 IVANS Index report now >
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, insuranceOrder.com (a Trilogy company) which was acquired by Marsh & McLennan in 2001.