Insurance Premiums Continued To Increase Across Most Lines in July

Year-over-year, all commercial insurance lines except workers compensation experienced an increase in average premium renewal rate in July, according to the IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.

Month-over-month, commercial insurance premium renewal rates rose in July for a number of lines including business owners policy (BOP), general liability, commercial property, umbrella, and workers compensation, while commercial auto decreased, IVANS reported.

Premium renewal rate changes by line of business for July 2021 include the following.

• Commercial auto: The average premium renewal rate in July was 4.19 percent, down from 4.28 percent in June.
• BOP: The July premium renewal rate was 4.87 percent, up from 4.66 percent the prior month.
• General liability: The average premium renewal rate increased to 4.17 percent in July from 4.07 percent in June.
• Commercial property: The commercial property renewal rate was 5.80 percent in July, up from 5.68 percent a month earlier.
• Umbrella: The umbrella premium renewal rate increased to 4.73 percent in July from 4.60 percent in June.
• Workers compensation: The premium renewal rate for workers compensation declined 1.93 percent in July, an increase from a 2.06 percent decline in June.

"The July results of the IVANS Index show a continued hardening in the market across almost all commercial lines of business as average premium renewal rates increase month over month," Kathy Hrach, vice president of product management, IVANS Insurance Services, said in a statement. "While macroeconomic trends have created some volatility in the markets, our premium renewal data continues to show the strength and consistency of the insurance market."

Released on a monthly basis, the IVANS Index analyzes more than 120 million data transactions to measure premium renewal rate change year-over-year across the US market.