IVANS Insurance Solutions, a division of Applied Systems, has announced the results of its Q2 IVANS Index, a premium renewal rate index for the insurance industry.
Results for the second quarter showed annual increases in premium renewal rate change for all major lines of commercial business except workers’ compensation, which remained negative. Compared to the first quarter, Q2 experienced an increase in average premium renewal rate change in commercial auto, BOP, general liability and umbrella, IVANS reported. Commercial property and workers’ compensation posted decreases quarter-over-quarter.
Highlights of the IVANS report include:
- Commercial auto: Q2 premium renewal rate averaged 4.51%, an increase over Q1’s 4.25%. the quarter began with a high of 4.65% and ended with a low of 4.28%.
- BOP: Premium renewal rate increased in Q2 with an average of 4.59%, up from 4.53% in Q1. The quarter reached its lowest rate in May at an average of 4.48%, and ended at its high at 4.66%.
- General liability: Q2 premium renewal rate averaged 3.95%, up from 3.74% in Q1. Premium renewal rate hit its low in May at 3.79% and reached its high in June at 4.07%.
- Commercial property: Average premium renewal rate decreased quarter over quarter to 5.54%, down from 5.82% in Q1. The premium renewal rate change hit its low in May at 5.43% and its high at the end of the quarter at 5.68%.
- Umbrella: Premium renewal rate change averaged 4.4%, up from 4.24% in Q1. Umbrella premium renewal rate change began the quarter at a low of 4.29% and ended at a high of 4.6%.
- Workers’ compensation: Premium renewal rate change averaged -1.74%, down from Q1’s -1.38%. The quarter’s premium renewal rate change hit its high of -1.52% in May and ended the quarter at its low of -2.06%.
“This quarter’s results demonstrate a continued hardening of the market as the average premium renewal rates in most major commercial lines of business increased compared to Q1,” said Kathy Hrach, vice president of product management at IVANS Insurance. “As we continue to manage through the pandemic and changing regulatory environments, the premium renewal insights of the IVANS Index will provide a leading indicator of the strength of the insurance channel.”