IVANS Index for 2020 Second Quarter shows increasing premium renewal rates year over year

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September 02, 2020

(Tampa, FL, Economic & Insurance News by Insurance Market 360 – www.insurancemarket360.com) – On July 9, IVANS (a division of Applied Systems) announced that in the second quarter of the year, the IVANS index showed an increase in the average premium renewal rate change for nearly all major commercial lines of business, compared to 2019, except for workers’ compensation. The Workers’ Compensation average premium renewal rate change was negative.

Of note, Business Owners Policy, General Liability, Property, and Umbrella experienced higher average premium renewal rate change than the first quarter of the year. Commercial Property continues to hit record premium renewal rate highs, with a jump of 5.51% in April.

Premium renewal rate change by line of business for Q2 2020 highlights include:

  • Commercial Auto: Premium renewal rate change averaged 4.72% for the quarter, with a quarter high in April at 4.80%.  The quarter low for premium renewal rate change was in June at an average of 4.63%.
  • BOP: Quarter premium renewal rate change averaged 4.97%, representing an increase over last quarter’s average of 4.65%. BOP premium renewal rate change finished the quarter at 4.64% in June.
  • General Liability: Q2 premium renewal rate change increased from Q1 2020, averaging 3.29% relative to 3.08%. The quarter premium renewal rate change reached its low of 3.23% in May, which is still higher relative to all average premium renewal rate change for General Liability experienced in Q1 2020.
  • Commercial Property: Q2 premium renewal rate change increased to 5.29%, reaching a quarter – and year to date – high in April at 5.51%.
  • Umbrella: Quarter premium renewal rate change averaged 3.25% versus 3.06% in Q1 2020. Umbrella premium renewal rate change for the quarter reached its high in June at 3.56%.
  • Workers’ Compensation: Average premium renewal rate change for the quarter reached -2.41%, down from Q1 2020 average of -1.81%.

“The Q2 IVANS Index results show a continued hardening in the market as premium renewal rates for nearly all major commercial lines of business increase year over year, with the exception of Workers’ Compensation,” said Brian Wood, vice president of Data Products Group. “As the pandemic begins to impact the industry, we will continue to monitor premium renewal rate changes via the IVANS Index, delivering guidance for brokers as they advise customers and for insurers to evaluate which lines of business to invest in.”

Download the complete Q2 IVANS Index report here.

Source: IVANS.

https://www.ivansinsurance.com/en-us/news/press-releases/2020/q2-2020-ivans-index-results-released/

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