Q2 2024 Sees Mixed Premium Renewal Rate Changes for Commercial Insurance

Premium renewal rate changes for nearly all commercial insurance lines were up year over year during the second quarter of 2024, according to the Ivans Index, a regular premium renewal rate index compiled by the Ivans insurance exchange service.

Ivans second-quarter results showed premium renewal rate changes increasing year over year for all major commercial lines except workers compensation.

General liability and workers compensation were the only major commercial lines to experience a decrease in average premium renewal rate compared to Q1 2024, with all other major lines experiencing an increase in Q2 2024, Ivans said.

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

• Commercial auto. The second-quarter average premium renewal rate for commercial auto averaged 9.28 percent, an increase from the first quarter's average of 9.09 percent. The quarter began with the lowest rate change in April at 8.17 percent and saw its highest rate in May with an average of 9.97 percent.
• Businessowners policy (BOP). The BOP premium renewal rate increased slightly in the second quarter, with an average of 9.49 percent versus 9.30 percent in the first quarter. The quarter's lowest premium renewal rate was in April at 7.94 percent, while the highest rate was 12.14 percent in May.
• General liability. The premium renewal rate for general liability decreased in this year's second quarter compared to the first quarter's level to an average of 4.86 percent from 5.89 percent. The second-quarter premium renewal rate saw its high in May at 5.76 percent and its low in June at 4.06 percent.
• Commercial property. The average premium renewal rate change for commercial property increased slightly in the second quarter by 10.86 percent versus 10.52 percent during the first quarter. The quarter ended with its highest rate change in June at 12.68 percent and hit its lowest rate in May at an average of 9.94 percent.
• Umbrella. The average premium renewal rate change for umbrella increased significantly by 9.62 percent in the second quarter versus a 6.81 percent increase in the first quarter. The premium renewal rate change for umbrella saw its quarter low of 8.24 percent in June and its high of 11.09 percent in May.
• Workers compensation. The workers compensation premium renewal rate change averaged a 1.28 percent decrease in the second quarter, down from a 0.88 percent decrease during the first quarter. The premium renewal rate change for workers compensation reached its low for the quarter of a 2.16 percent decrease in April and its high of a 0.20 percent decrease in May.

"This quarter's Ivans Index results show that we continue to operate in hard market conditions," said Kathy Hrach, senior vice president of Product Management at Ivans. "We will continue to track how macroeconomic trends, severe weather events, and the shifting political landscape influence rates as we enter the second half of 2024."

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