Average premium renewal rates of nearly all major commercial lines of business remain up year over year
IVANS® today announced the results for Q1 2022 IVANS Index™, the insurance industry’s premium renewal rate index. The first quarter results of 2022 showed premium renewal rate change for all major commercial lines of business are up year over year, except Workers’ Compensation, which remained in the negative. Q1 experienced an increase in average premium renewal rate change across Commercial Property and Umbrella compared to Q4 2021. Commercial Auto, BOP, General Liability and Workers’ Compensation experienced decreases in average premium renewal rates compared to Q4 2021.
Premium renewal rate change by line of business for Q1 2022 highlights includes:
- Commercial Auto: Q1 average premium renewal rate averaged 4.22%, a decrease compared to Q4 2021’s average premium renewal rate of 4.69%. The quarter reached its lowest rate in February, averaging 4.06% and ended with its highest of 4.47% in March.
- BOP: BOP premium renewal rate dropped in Q1 with an average of 5.32% versus 5.58% in Q4 2021. The quarter began and ended with premium renewal rate change of 5.28% and reached its highest rate in February, averaging 5.41%.
- General Liability: First quarter premium renewal rate experienced a decrease compared to Q4 2021, averaging 4.3% versus 4.41%. Q1 premium renewal rate experienced its low in February at 4.11% and reached its high in March at 4.56%.
- Commercial Property: Average premium renewal rate change for Commercial Property increased quarter over quarter at 6.16% versus 5.95% in Q4 2021. The quarter premium renewal rate change reached its low of 6.01% in February and experienced its high in March at 6.29%.
- Umbrella: Q1 premium renewal rate change averaged 5.77%, rising from 5.13% in Q4 2021. Umbrella premium renewal rate change experienced its low of 4.68% in February and reached its quarter high of 7.04% in March.
- Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -1.23%, down from Q4 2021 at -1.16%. The quarter premium renewal rate change reached its high of -0.95% in February and ended the quarter at its low of -1.48%.
“We are seeing that our data is consistent with macroeconomic trends, like inflation, as average premium renewal rates continue to rise,” said Kathy Hrach, vice president of Product Management, IVANS. “As these rates rise, we will continue to watch as they show up in the form of profitable earnings by both agents and carriers.”
Released on a monthly basis, IVANS Index is a data-driven report of current conditions and trends for premium rate renewal 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. Inclusive of more than 34,000 agencies and 450 insurers and MGAs, the IVANS Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market.