Renewal Rates Rise Year over Year for Most Commercial Lines in Q3

Ivans has released the Q3 2024 results of the Ivans Index. The third-quarter results reveal that renewal rates for all major commercial lines, except workers compensation, increased year over year. While most lines showed a steady annual rise, the businessowners policy (BOP), general liability, and umbrella lines experienced a dip in average renewal rates compared to Q2 2024, in contrast to increases seen across other major lines during the third quarter.

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

• Commercial auto. The third-quarter average premium renewal rate for commercial auto averaged 9.71 percent, an increase from Q2 2024's average rate of 9.27 percent. The quarter began with the highest rate change in July, averaging 9.73 percent, and ended with its lowest rate in September at 9.67 percent.
• BOP. The BOP premium renewal rate decreased in the third quarter, averaging 8.68 percent compared to 9.48 percent in the second quarter. The quarter saw its lowest premium renewal rate change in August averaging 8.62 percent and ended with its highest average rate of 8.76 percent in September.
• General liability. The general liability premium renewal rate averaged 4.28 percent in the third quarter, a decrease from 4.87 percent in the second quarter. The quarter reached its lowest rate change in August at 4.14 percent and ended with its highest rate in September at 4.48 percent.
• Commercial property. The average premium renewal rate change for commercial property increased in the third quarter to 11.69 percent, up from 10.85 percent in the second quarter. The quarter began with the highest rate change in July at 11.89 percent and saw its lowest rate in August at 11.38 percent.
• Umbrella. The average premium renewal rate change for umbrella experienced an 8.56 percent decrease during the third quarter versus 9.62 percent during the second quarter. The quarter started with the lowest rate change in July at an average of 8.50 percent and reached its highest rate in September at 8.60 percent.
• Workers compensation. The average workers compensation premium renewal rate decreased 1.28 percent during the third quarter, up slightly from a 1.29 percent decrease during the second quarter. The quarter saw its lowest rate change in August at an average decrease of 1.39 percent and reached its highest rate in July at an average decrease of 1.22 percent.

"This quarter's Ivans Index underscores the belief that the severity of rate increases is slowing down while they remain at an elevated new normal,” Kathy Hrach, vice president of product management at Ivans, said in a statement.

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