Premiums Continued To Increase Across Most US Commercial Lines in May

Average premium renewal rates continued to increase year over year across nearly all commercial insurance lines in May 2021, according to the IVANS Index, a regular premium renewal rate index compiled by the IVANS insurance exchange service.

Most lines experienced month-over-month premium renewal rate declines, however, according to IVANS.

Year over year, workers compensation was the only line of coverage to not experience a premium renewal rate increase but instead remained negative. Month over month, premium renewal rates for lines of business including umbrella and workers compensation saw increases, while commercial auto, business owners policy (BOP), general liability, and commercial property experienced downturns.

Premium renewal rate changes by line of business in May 2021 include the following.

• Commercial auto. The average May premium renewal rate was 4.59 percent, down from 4.65 percent in April.
• BOP. The May premium renewal rate was 4.48 percent, down from 4.64 percent a month earlier.
• General liability. The average premium renewal rate declined to 3.79 percent in May from 4.00 percent in April.
• Commercial property. The commercial property premium renewal rate was 5.43 percent in May, down from 5.52 percent in April.
• Umbrella. The average premium renewal rate increased to 4.31 percent in May from 4.29 percent the prior month.
• Workers compensation. The premium renewal rate declined 1.52 percent in May, an increase from a 1.64 percent decline in April.

"This month's IVANS Index demonstrates that commercial property rates continue to remain high while workers compensation premium renewal rates trend up, notably closer to flat compared to year's prior," Kathy Hrach, vice president of Product Management, IVANS Insurance Services, said in a statement. "While month-over-month trends experienced a little softening in the market relative to last year, the market remains firm with expected increases in rates during renewals."

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.