2021 premium renewal rates revealed

2021 premium renewal rates revealed | Insurance Business America

2021 premium renewal rates revealed

IVANS Insurance Solutions has announced the results for the Q4 and year-end 2021 IVANS Index, a renewal rate index for the insurance industry.

The Q4 results showed an annual increase in the average premium renewal rate across all major commercial lines of business. However, the workers’ compensation average premium renewal rate change remained in negative territory, as it did throughout the entire year. Compared to Q3, the fourth quarter showed an increase in average premium renewal rate change across all major commercial lines of business.

Highlights of the report include:

  • Commercial auto: Average premium renewal rate change was 4.69% for the quarter and ended the year at 4.55% in December, which was also the low for the quarter. The high for the quarter was 4.89% in November
  • Business owners’ policy: Q4 premium renewal rate averaged 5.58%, an increase over Q3’s average of 5.05%. BOP premium renewal rate change finished the quarter at 5.77% in December
  • General liability: Q4 premium renewal rate increased over Q3, averaging 4.41% compared to the third quarter’s 4.21%. The quarter average premium renewal rate change reached its low of 4.18% at the beginning of the quarter in October, and ended the year with the quarter high of 4.28%
  • Commercial property: Fourth-quarter premium renewal rate change rose to 5.95% from Q3’s 5.77%. Property average premium renewal rate change hit its high for 2021 in December at 6.14%
  • Umbrella: Q4 premium renewal rate rose to an average of 5.13% from Q3’s average of 4.85%. Umbrella average premium renewal rate change hit its quarter low in November at 4.97% and its quarter high in December at 5.4%
  • Workers’ compensation: Average premium renewal rate change for the quarter reached -1.16%, up from the Q3 average of -1.4%. Workers’ compensation hit its quarter low in October at -1.57% and its high in November at -0.75%

Read next: IVANS bolsters commercial lines connectivity with acquisition

BOP, general liability, commercial property and umbrella all ended the year with their highest average premium renewal rate change. Commercial property premium renewal rate change averaged consistently higher than all other lines of business last year, IVANS found.

“Most major commercial lines of insurance ended the year with their highest average premium renewal rate since the IVANS Index began in 2017,” said Kathy Hrach, vice president of product management at IVANS Insurance. “As the average premium renewal rate changes become influenced by macroeconomic trends like inflation and economic uncertainty, we will continue to track how these commercial lines of business fare in 2022.”