Nearly All Commercial Insurance Lines Saw Premium Increases in 2024

The year-end 2024 Ivans Index™ shows premium renewal rate increases for nearly all major commercial lines of business, with only workers compensation experiencing a continued decline. The data, which reflects renewal rate changes year over year, also highlights variability quarter over quarter, signaling ongoing shifts in the market. 

Q4 2024: Key Highlights by Line of Business

• Commercial auto. Premium renewal rates averaged 9.82 percent in Q4 2024, a slight increase from Q3's 9.71 percent. Rates were lowest in October at 9.62 percent and peaked in December at 9.99 percent.
• Businessowners policy (BOP). BOP renewal rates averaged 9.09 percent in Q4 2024, up from Q3's 8.68 percent. December marked the quarter's high at 9.59 percent, while October saw the low at 8.72 percent.
• General liability. Rates averaged 3.98 percent in Q4 2024, down from 4.28 percent in Q3. Rates were steady in October and November at 3.89 percent, rising slightly to 4.16 percent in December.
• Commercial property. Renewal rates averaged 11.11 percent in Q4, lower than Q3's 11.69 percent. October saw the highest rate at 11.24 percent, while November posted the lowest at 10.98 percent. Despite the quarterly dip, commercial property maintained the highest average premium renewal rate change among all lines of business in 2024.
• Umbrella. Average rates increased to 8.76 percent in Q4 from 8.56 percent in Q3. Rates started at 8.49 percent in October and rose to 9.09 percent by December.
• Workers compensation. This line continued its decline, with rates averaging –1.47 percent in Q4 2024, compared to –1.28 percent in Q3. October had the highest renewal rate change at –1.43 percent, with the lowest in November at –1.52 percent.

2024 Year-End Observations

Commercial auto ended the year with its highest average renewal rate change at 9.82 percent. While most lines saw higher year-over-year averages compared to 2023, general liability and workers compensation experienced slightly lower average renewal rate changes. Commercial property average premium renewal rate change was once again consistently higher compared to all other lines of business in 2024.

Kathy Hrach, senior vice president of product management at Ivans, noted, "Premium renewal rates were variable throughout the fourth quarter, but remained elevated compared to 2023, signaling that hard market conditions may become the new normal for our industry. With an active catastrophic season in the fourth quarter of 2024 and a new administration entering the office in the first quarter of 2025, we will continue to look to the Ivans Index as a guidepost on the health of the commercial market."

The Ivans Index analyzes over 120 million data transactions annually, encompassing more than 38,000 agencies and 700 insurers and managing general agents.