Most Commercial Lines See Rate Increases Accelerate in Q2 Renewals
Most major commercial insurance lines saw quarter-over-quarter increases in the average premium renewal rate, with the notable exception of umbrellas, Ivans Insurance Services reported Thursday.
In the commercial property lines, the average premium renewal rate change increased 6.4% quarter-over-quarter from 6.16% in the first quarter, Tampa, Inc.-based Ivans said. Florida. The quarterly change in the premium renewal rate reached its lowest at 6.05% in April and its highest in June at 6.67%.
The change in the premium renewal rate for business owners’ policies increased by an average of 5.69% in the second quarter, compared to 5.32% in the first quarter. The low of 5.56% was in April and the high of 5.83% in June.
The change in the average renewal rate of premiums for commercial automobile lines of business was 5.05%, compared to 4.22% in the first quarter. The average change in the premium renewal rate was highest in April at 5.2% and lowest in June at 4.92%.
General liability insurance recorded an average premium renewal rate increase of 4.76%, compared to 4.3% in the first quarter. The low was in April at 4.64% and the high in May at 4.85%.
Workers’ compensation saw an average decline in premium renewal rate of 0.73%, an increase from the 1.23% decline in the first quarter. The change in the premium renewal rate bottomed out at -0.91% in April and ended the quarter at a high of -0.43.
The change of 5.19% in the average premium renewal rate for Umbrella cover in the second quarter is down from the 5.77% observed in the first quarter. The low of 5.12% was in May and the high of 5.29% in June.
“This quarter’s Ivans Index continues to show that average premium renewal rate changes track other macro trends in the hard market,” Kathy Hrach, vice president of product management for Ivans, said in a statement. accompanying the report.
Ivans, a division of Applied Systems Inc., based in University Park, Illinois, tracks more than 120 million data transactions and includes more than 34,000 agencies and 450 insurers and managing general agents in its monthly analysis.