The Connected Business of Insurance
July 12, 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.
Premium Renewal Rate Experiences Q2 Year-over-Year Increase Across Nearly All Major Commercial Lines Products
Year over year, Commercial Auto, Business Owner’s Policy, General Liability, Umbrella and Commercial Property all experienced increases in average premium renewal rate change; Workers’ Compensation remains in negative territory. Quarter over quarter, there was greater variability in average premium renewal rate change. General Liability and Commercial Property all experienced increases compared to Q1; however, Commercial Auto, Umbrella and Workers’ Compensation average premium renewal rate change dropped relative to the quarter prior. Business Owner’s Policy remained flat quarter over quarter.
Highlights from Q2 2019 results include:
- Commercial Auto: Premium renewal rate change averaged 4.33% for the quarter, with a quarter high in June at 4.39%.
- BOP: Quarter premium renewal rate change averaged 4.19%, and finished the quarter at 4.18% in June.
- General Liability: Q2 premium renewal rate change increased from Q1, averaging 2.29% change relative to 1.67% in Q1. The quarter premium renewal rate change reached its low of 2.18% in April.
- Commercial Property: Q2 premium renewal rate change increased to 3.92%, reaching a quarter high in June at 4.25%.
- Umbrella: Q2 premium renewal rate change averaged 2.59 versus 2.54% in Q1. Umbrella premium renewal rate change for the quarter reached its high in June at 2.66%.
- Workers’ Compensation: Average premium renewal rate change for the quarter reached -3.56%, down from Q1 average of -2.95%.
From Q2 2018 to Q2 2019, we see the trend of most Commercial Lines increasing with the exception of Workers’ Compensation. These data-driven insights are indicating that premium pricing in the market continues to harden, providing the opportunity for greater profitability across certain lines of commercial business.
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 Q2 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.