Most Commercial Lines Continued To See Premium Increases in February

Nearly all commercial insurance lines continued to see year-over-year premium rate increases in February, according to the IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.

Year over year, all lines of commercial insurance business experienced increases in the average premium renewal rate in February 2021 except workers compensation, which saw a decrease in premium. Month over month, premium renewal rates for lines of business including business owners policy (BOP), general liability, and commercial property experienced increased, IVANS reported, while commercial auto, umbrella, and workers compensation saw drops in premium renewal rates from their January 2021 levels.

Premium renewal rate changes by the line of business for February included the following.

• Commercial auto. The premium renewal rate increased 4.38 percent in February, down from a 4.45 percent increase in January.
• BOP. The premium renewal rate increased 4.59 percent in February, up from a 4.46 percent increase a month earlier.
• General liability. The premium renewal rate was up 3.93 percent in February, an increase from January's 3.69 percent.
• Commercial property. The premium renewal rate increased 6.13 percent in February, up from a 5.63 percent increase in January.
• Umbrella. The premium renewal rate was up 4.25 percent in February, down from the 4.29 percent increase a month prior.
• Workers compensation. The premium renewal rate decreased 1.47 percent in February, down from January's 1.02 percent decrease.

"Economic trends continue to positively impact premium renewal rates year over year, except workers compensation which stayed consistently negative," Kathy Hrach, vice president of product management, IVANS Insurance Services, said in a statement. "Looking at 2021 to date, commercial property experienced the most significant increase in premium renewal rate in February, while general liability continues its steadily increasing trend."

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.