Premium Hikes Slow for Many Commercial Lines in January

Nearly all commercial insurance lines experienced year-over-year premium renewal rate increases in January, though most experienced decreases in the rate of increase from the prior month, according to the IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.

Workers compensation was the only commercial insurance line not to experience a year-over-year premium renewal rate increase in January. Renewal rates increased month over month for commercial property and umbrella. Commercial auto, businessowners policy (BOP), general liability, and workers compensation all experienced month-over-month declines in average premium renewal rates for the month.

Premium renewal rate changes by line of business in January include the following.

• Commercial Auto—The average premium renewal rate increase was 4.13 percent, down from a 4.55 percent increase in December.
• BOP—The January average premium renewal rate increase was 4.28 percent, down from 5.77 percent the prior month.
• General Liability—The average premium renewal rate was 4.23 percent in January, down from 4.78 percent in January.
• Commercial Property—Premium renewal rates increased 6.17 percent in January, up from 6.14 percent in December.
• Umbrella—Premium renewal rates increased 5.58 percent on average for umbrella coverage in January, up from 5.40 percent the previous month.
• Workers Compensation—Workers compensation premium renewal rates declined 1.26 percent in January, down from 1.16 percent in December.

"Many of the major commercial lines of business that had been steadily rising over the course of last year, such as BOP and general liability, experienced decreases in average premium renewal rates this month," Kathy Hrach, vice president of product management, IVANS Insurance Services, said in a statement. "Year over year, major commercial lines of business remain positive, with the exception of workers compensation, which continues to report below zero."

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.