Most Commercial Lines Experienced Yearly Premium Growth in Q1

Premium renewal rate changes for all major lines of commercial insurance except workers compensation were up year over year during the first quarter of 2024, according to the IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.

The first quarter saw increases in average premium renewal rate changes for commercial auto, business owners policy (BOP), general liability, commercial property, and umbrella, compared to the fourth quarter of 2023. Workers compensation experienced a decrease in average premium renewal rates in the first quarter from the prior quarter.

Premium renewal rate changes by the line of business during the first quarter include the following.

• Commercial auto. The first quarter premium renewal rate change averaged 9.09 percent, up from the fourth quarter of 2023's average premium renewal rate of 8.79 percent. The quarter saw its lowest rate in January with an average 7.04 percent increase and saw its highest rate at 10.30 percent in February.
• BOP. The BOP premium renewal rate experienced an average 9.30 percent increase during the first quarter versus a 9.12 percent increase in the prior quarter. The quarter reached its highest level in February with an average increase of 9.72 percent and ended with its lowest premium renewal rate change at 8.84 percent in March.
• General liability. The first quarter premium renewal rate change increased from the prior quarter, averaging 5.89 percent versus 5.83 percent in the fourth quarter of 2023. The first quarter premium renewal rate change for general liability hit its low in January at 5.38 percent and its high in February at 6.21 percent.
• Commercial property. The average premium renewal rate change for commercial property increased quarter over quarter, averaging 10.52 percent in the first quarter versus 10.34 percent during the fourth quarter of 2023. The first quarter premium renewal rate change for commercial property reached its low of 10.30 percent in January and experienced its high in February at 10.77 percent.
• Umbrella. The first quarter average premium renewal rate change of 6.81 percent was up from a 6.39 percent increase during the prior quarter. The umbrella premium renewal rate change experienced its low in January at 6.35 percent and its high of 7.10 percent in March.
• Workers compensation. The premium renewal rate change for workers compensation averaged a .88 percent decrease during the first quarter, down from a .64 percent decrease during the fourth quarter of 2023. The quarter's premium renewal rate change for workers compensation reached its high of a 0.4 percent decrease in February and ended the quarter with its low of a 1.57 percent decrease in March.

"This quarter's IVANS Index results show that the premium renewal rates continue to increase across all major commercial lines, signaling continued hard market conditions," said Kathy Hrach, senior vice president of product management, IVANS. "The continued rate increases of the hard market is being closely tracked across the industry as renewals and remarketing become more and more important."

The monthly IVANS Index is based on the analysis of data from more than 120 million commercial insurance transactions.