2018 starts with positive insurance premium renewal rate changes - IVANS

Applied Systems division IVANS has announced the results of its 2018 Q1 IVANS Index, which tracks the insurance industry’s premium renewal rate for the period.

According to the report, the results for Q1 showed a positive uptick in premium renewal rate change average across nearly all lines of commercial business – including commercial auto, business owner’s policy, commercial property, umbrella, and general liability – compared to the last quarter, Q4 2017.

The workers’ compensation line, however, posted slightly negative premium renewal rate change for the period.

The changes per line of business are as follows:

• Commercial auto – Premium renewal rate change averaged 4.20% for Q1, ending 3.87% in March.
• BOP – Quarter premium renewal rate change averaged 4.00%; an increase over last quarter’s average of 3.85%. The business segment’s renewal rate change ended March at 4.29%.
• General liability – Q1 premium renewal rate change saw an uptick at 2.01% compared to Q4 which averaged 1.86%. General liability renewal rate reached hit 2.24% at the end of March.
• Commercial property – Q1 premium renewal rate change increased on average by 3.11%, compared to 2.91% in Q4 last year.
• Umbrella – Quarter premium renewal rate change finished the quarter at 2.13%, increasing the Q1 average to 1.49% from 1.34% in Q4.
• Workers’ compensation – compared to other lines, workers’ compensation premium renewal rate continued to drop in Q1, averaging -2.47%, compared to -2.32% in Q4.

“Quarter-over-quarter, premium renewal rate change continues to show significant positive momentum across the majority of commercial lines,” commented IVANS Markets vice-president Brian Wood.