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.
Monthly Update: Severe Weather Impacts
“Property Insurers Hit By Worst First Quarter In 20 Years” was a Wall Street Journal front page story on April 30th. In the first quarter, the U.S. experienced 432 tornados, which is 340 more than the three year average according to NOAA.
Overall property rates have yet to show substantial changes over prior months. However, in Texas and Kansas, the two highest volume tornado states, property insurance buyers are experiencing renewals at near 50% higher than the overall average over the past six months. The six-month rates in Texas and Kansas averaged 4.12% vs. the overall property average of 2.78%.
States averaging fewer tornadoes per year than Texas and Kansas, including Oklahoma, Florida, Nebraska, Illinois and Colorado, have experienced less impact on premium renewal rate change over the past 6 months.
An updated assessment of the impact of storms, particularly tornados, will be included in the IVANS Index Q2 Report.