The Connected Business of Insurance
October 04, 2018
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.
Insurance industry premium renewal rate change experiences uptick in nearly all major commercial lines products
Q3 results of the IVANS Index showed a positive uptick in premium renewal rate change average across nearly all lines of commercial business, including Commercial Auto, Umbrella, Commercial Property, and General Liability compared to Q2 2018; however, Business Owner’s Policy and Workers’ Compensation demonstrated slightly negative premium renewal rate change during the quarter.
Highlights from the Q3 2018 results include:
- Commercial Auto: The third quarter premium renewal rate change increased with an average of 4.48%, ending at 4.50% for September.
- BOP: Quarter premium renewal rate change averaged 3.77%, representing a decrease compared to last quarter’s average of 4.00%, and finished at 3.57% in September.
- General Liability: Q3 premium renewal rate change increased to 2.35% and ended the quarter in September at 2.29%.
- Commercial Property: Premium renewal rate change experienced an increase quarter over quarter, with an average rate change of 3.34% in Q3 and ended at 4.36% in September.
- Umbrella: The third quarter premium renewal rate change averaged 1.93% versus 1.77% in Q2 2018. September premium renewal rate change finished at 2.30%.
- Workers’ Compensation: Q3 showcased a decrease in premium renewal rate change, averaging at -2.76% as compared to -2.49% in Q2 2018.
As the vast array of pricing drivers, including tariffs, storm losses, etc., play a part in the very dynamic nature of insurance pricing, the latest figures for the IVANS Index show a slight increase quarter over quarter and demonstrate a general hardening of the Commercial Lines market. The IVANS Index continues to provide insights into overall health of the industry and most profitable opportunities for both agents and insurers.
For further insights into premium renewal rate change across the industry, download the latest 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.