Premium renewal rate changes for all major commercial lines of business increased year over year with the exception of the workers’ compensation line, which remained negative, according to the Ivans Index second quarter results.
The Index revealed that Q2 experienced an increase in average premium renewal rate change across commercial auto, business owner’s policy (BOP), general liability, commercial property, and workers’ compensation compared to Q1 2022, while umbrella experienced a decrease.
Premium renewal rate change by line of business for Q2 2022 highlights include:
- Commercial auto: Q2 average premium renewal rate change averaged 5.05%, an increase compared to Q1 2022’s average premium renewal rate change of 4.22%. The quarter began with its highest rate change in April, averaging 5.2% and ended with its lowest of 4.92% in June.
- Business owners policies: BOP premium renewal rate change increased in Q2 with an average of 5.69% versus 5.32% in Q1 2022. The quarter premium renewal rate change experienced its low of 5.56% in April and ended the quarter at its high of 5.83%.
- General liability: Second quarter premium renewal rate change experienced an increase compared to Q1 2022, averaging 4.76% versus 4.3%. Q2 premium renewal rate experienced its low in April at 4.64% and reached its high in May at 4.85%.
- Commercial property: Average premium renewal rate change for Commercial Property increased quarter over quarter at 6.4% versus 6.16% in Q1 2022. The quarter premium renewal rate change reached its low of 6.05% in April and experienced its high in June at 6.67%.
- Umbrella: Q2 premium renewal rate change averaged 5.19%, dropping from 5.77% in Q1 2022. Umbrella premium renewal rate change experienced its low of 5.12% in May and reached its quarter high of 5.29% in June.
- Workers’ compensation: Workers’ compensation premium renewal rate change averaged -0.73%, up from Q1 2022 at -1.23%. The quarter premium renewal rate change experienced its low of -0.91% in April and ended the quarter at its high of -0.43%.
“This quarter’s Ivans Index continues to show average premium renewal rate changes tracking alongside other hard market macroeconomic trends,” said Kathy Hrach, vice president of Product Management, Ivans.
Ivans Index is a data-driven report of current conditions and trends for premium renewal rate change of the most placed commercial lines of business in the insurance industry. Analyzing more than 120 million data transactions, the Ivans Index premium renewal rate change measures the premium difference year over year for a single consistent policy.
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