IVANS: Commercial Lines Renewal Rates Show Varied Change

IVANS announced the IVANS Index: Premium Renewal Rate Index May 2019  results.  Month over month, May results showed varied change in premium renewal rates with businessowners policy, general liability, and commercial property experiencing an upward turn, and commercial auto, umbrella, and workers compensation experiencing a downtick in rate.

Premium renewal rate change by line of business for May 2019 highlights include the following.

• Commercial Auto: 4.28 percent, down from 4.33 percent the month prior
• Businessowners Policy: 4.26 percent, up from 4.12 percent at the end of April
• General Liability: 2.46 percent, up from 2.18 percent the month prior
• Commercial Property: 3.82 percent, up from 3.69 in April
• Umbrella: 2.52 percent, down from 2.59 percent the month prior
• Workers Compensation: -3.86 percent, down from -3.77 percent at the end of April

"The latest IVANS Index results show varied changes among all commercial lines, with General Liability experiencing the greatest increase month over month since April," said Brian Wood, vice president of Data Products Group, IVANS Insurance Services.

IVANS Index, released monthly, is a data-driven report on conditions and trends for premium rate renewal change of the most-placed commercial lines of business in the insurance industry. Based on analysis of more than 120 million data transactions, the IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy. It includes more than 32,000 agencies and 400 insurers and managing general agents, and it reflects premium rate change trends experienced by all agencies and insurers across the US insurance market. IVANS Index is available to agencies and insurers as part of IVANS's "Market Insights."

To derive the change in cost, IVANS uses policies that have the same insured, insurer, product type, policy number, expiration date, effective date, and producing agency. For example, if an insured paid $1,000 for a policy last year and $1,023 this year, IVANS Index would state that there is a premium renewal rate change of 2.3 percent. IVANS Index does not use exposure base change or claims experience. Policies with anomalous exposure changes or claims experience are removed.

The complete IVANS Index report is available on the IVANS website.