Rates for Commercial Lines Up Slightly in Q4: IVANS
The IVANS Index of premium rate renewals for the fourth quarter showed a slight rise in the average rate change across commercial auto, business owners, general liability, and commercial property compared to Q3, but a drop in the average change for umbrella and workers’ compensation policies.
Premium renewal rate change by line of business for Q4 and the full year 2017 as measured by IVANS showed:
Commercial Auto: Premium renewal rate change averaged 3.11 percent for the quarter, with a quarter high in November at 3.24 percent and ending the quarter at its low of 3.00 percent in December. The year high and low premium renewal rate change occurred in back-to-back months, June at 2.41 percent, July at 3.28 percent.
BOP: Quarter premium renewal rate change averaged 3.85 percent, representing an increase over last quarter’s average of 4.79 percent. BOP premium renewal rate change finished the quarter at 3.79 percent in December. The year high and low premium renewal rate change occurred in May and October at 4.49 percent and 3.57 percent respectively.
General Liability: Q4 premium renewal rate change increased from Q3, averaging 1.86 percent change relative to 1.74 percent. The quarter premium renewal rate change low reached 1.66 percent in November and ended the quarter in December at 2.13 percent.
Commercial Property: Q4 premium renewal rate change rose again quarter over quarter, with an average rate change of 2.91 percent as compared to 2.48 percent in Q3. The year low and high premium renewal rate change occurred in back-to-back months, with May at 1.46 percent and June at 2.22 percent.
Umbrella: Q4 renewal rate change averaged 1.34 percent vs. 0.47 percent in Q3. The year high/low premium renewal rate change occurred in June and September at 3.52 percent, and 2.40 percent respectively.
Workers’ Comp: Average premium renewal rate change reached a year low at -2.32 percent, down from Q3 average of -1.18 percent. The year low and high premium renewal rate change occurred in May and August at 0.81 percent and 1.56 percent respectively.
The IVANS Index measures the premium difference year-over-year for a single policy. It analyzes data from 30,000 agencies and 380 insurers and MGAs, according to IVANS, a division of Applied Systems.