The Connected Business of Insurance
January 10, 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.
Positive Uptick in Premium Renewal Rate Change Average Across Nearly All Lines of Business
The latest IVANS Index results for Q4 2018 show that insurance industry premium renewal rates are up quarter-over-quarter across nearly all major commercial product lines, except Workers’ Compensation. Commercial Auto, Business Owner’s Policy, Commercial Property, Umbrella, and General Liability show positive results compared to Q3 2018. Workers’ Compensation remains the only line of business experiencing a negative rate change, which was consistent throughout all of 2018.
Key findings from the Q4 2018 results include:
- Commercial Auto: Premium renewal rate change averaged 4.66% for the quarter, ending at 4.51% for December.
- BOP: Quarter premium renewal rate change averaged 4.23%, representing an increase over last quarter’s average of 4.15%. BOP premium renewal rate change finished the quarter at 4.23% in December.
- General Liability: The quarter premium renewal rate change averaged 2.54%, increasing from 2.35% in Q3, and ended the quarter in December at 2.23%.
- Commercial Property: Q4 premium renewal rate change experienced an increase quarter over quarter, with an average rate change of 3.74% as compared to 3.34% in Q3 2018.
- Umbrella: Q4 premium renewal rate change averaged 2.42% versus 1.93% in Q3 and reached its high for 2018 in Q4 at 2.76% in November.
- Workers’ Compensation: Average premium renewal rate change showed a decrease in Q4, averaging at -3.04% as compared to -2.76% in Q3 2018.
The most recent IVANS Index figures reveal generally positive results for premium renewal rate change. As the year comes to a close, the IVANS Index continues to show growth opportunities in most commercial lines of business, guiding both agents and insurers towards industry-wide insights and profitable opportunities.
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 380 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 Q4 2018 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.