Commercial insurance renewal rates fell across five of six major lines in August, the latest Ivans Index shows. The monthly deceleration has now run through most of the year. The index draws on more than 120 million data transactions across 38,000 agencies and 700 carriers and managing general agents.
Year over year, all five of those lines are still producing positive rate changes. Clients are paying more than they were 12 months ago. Month over month, every one of them fell in August, and that gap is where renewal conversations are now being shaped.
General liability posted the sharpest single-month drop, from 4.99% in July to 4.18% in August. Its Q1 2026 average was 6.85%, a slide of 267 basis points since the start of the year.
Business owner's policy averaged 5.44% in August, down from 5.94% in July, and 130 basis points below its Q1 average of 6.74%. Commercial property came in at 5.69%, off from 6.16% in July and 114 basis points below its Q1 average of 6.83%. Commercial auto dropped to 3.58% in August from 4.03% in July, a fall of 170 basis points from its Q1 average of 5.28%.
Umbrella recorded the steepest cumulative decline of any line, at 254 basis points since January. It averaged 9.36% in Q1 2026, eased to 7.96% in Q2, and fell to 6.82% in August. Umbrella has been among the harder lines to move on pricing across several renewal cycles. The pace of its current decline makes it one to watch for agents with excess liability-heavy books.
Workers' comp moves against the trend
Workers' compensation is the single line moving in the opposite monthly direction. Its August renewal rate came in at -1.10%, up from -1.26% in July. That continues a steady climb from -1.73% in Q1 2026 and -1.37% across Q2. The line remains negative year over year, so clients are still renewing at lower premiums than the prior year. But the pace of that decline is easing, and the trajectory points toward a potential return to flat.
The Ivans Index measures premium difference year over year for the same consistent policy, matched on insured, insurer, product type, and producing agency. It excludes policies with anomaly exposure changes or claims experience, so the figures track clean renewal pricing movement rather than book mix shifts.
The year-over-year and month-over-month figures are not contradictory. They show two different time horizons on the same softening cycle. Clients comparing their current renewal to 12 months ago are still seeing higher premiums in most commercial lines. Agents benchmarking against where rates stood in January 2026 are operating in a market that has moved meaningfully in the client's favor.
That gap narrows as each month passes. Commercial auto, now at 3.58% year over year, is the closest of the five positive lines to a crossover into flat or negative territory. General liability at 4.18% is not far behind, down 267 basis points from its Q1 average.
Carriers entered 2026 with their strongest underwriting results in more than a decade, a position that gives them room to compete on pricing. Whether that capacity is deployed selectively or broadly will set the floor on how far renewal rates continue to fall.
