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IVANS Index: Q3 2019 Results for Premium Renewal Rate Change

October 9, 2019

By: Brian Wood

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 Rates Experience Increase Across Nearly All Major Commercial Product Lines

Year over year, Commercial Auto, Business Owner’s Policy, General Liability, Umbrella and Commercial Property all experienced an increase in average premium renewal rate change in Q3; Workers’ Compensation remains in negative territory. Quarter over quarter, there was greater variability in average premium renewal rate change. Business Owner’s Policy and Commercial Auto all experienced very slight decreases compared to Q2; however, Commercial Property, Umbrella, and General Liability and Workers’ Compensation average premium renewal rate change increased relative to the quarter prior.

Highlights from Q3 2019 results include:

  • Commercial Auto: Premium renewal rate change averaged 4.32% for the quarter, with a quarter high in August at 4.49%.
  • BOP: Quarter premium renewal rate change averaged 4.17%, and finished the quarter at 4.09% in September.
  • General Liability: Q3 premium renewal rate change increased from Q2, averaging 2.51% change relative to 2.29% in Q2. The quarter premium renewal rate change reached its low of 2.20% in July.
  • Commercial Property: Q3 premium renewal rate change increased to 4.20%, reaching a quarter high in September at 4.35%.
  • Umbrella: Q3 premium renewal rate change averaged 2.66 versus 2.59% in Q2. Umbrella premium renewal rate change for the quarter reached its high in August at 2.92%.
  • Workers’ Compensation: Average premium renewal rate change for the quarter reached -2.92%, up from Q2 average of -3.56%.

From Q3 2018 to Q3 2019, most Commercial Lines premium renewal rates have increased, with the exception of Workers’ Compensation which continues to trend down. Our numbers continue to show prices increasing, arming brokers with the data-driven insights they need to more accurately guide customers during renewals and providing insurers line of sight in how their pricing compares to industry averages.

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 latest IVANS Index report now >

Brian Wood

Brian Wood

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, (a Trilogy company) which was acquired by Marsh & McLennan in 2001.