Nearly all major commercial lines of business experience increase in average premium renewal rate quarter over quarter
TAMPA, Fla., April 14, 2021 (GLOBE NEWSWIRE) — IVANS Insurance Solutions® today announced the results for Q1 2021 IVANS Index™, the insurance industry’s premium renewal rate index. The first quarter results of 2021 showed premium renewal rate change for all major commercial lines of business increased year over year, except Workers’ Compensation which remained negative. Q1 experienced an increase in average premium renewal rate change across General Liability, Commercial Property, Umbrella and Workers’ Compensation compared to Q4 2020. Commercial Auto and BOP experienced decreases in average premium renewal rates compared to Q4 2020, which is consistent with the changes seen in Q4 2020.
Premium renewal rate change by line of business for Q1 2021 highlights includes:
- Commercial Auto: Q1 average premium renewal rate averaged 4.25%, a decrease compared to Q4 2020’s average premium renewal rate of 4.46%. The quarter began with a high of 4.45% and ended with the its low of 3.91%.
- BOP: BOP premium renewal rate dropped in Q1 with an average of 4.53% versus 4.57% in Q4 2020. The quarter reached its highest rate in February, averaging 4.59%, and hit its low in January at 4.46%.
- General Liability: First quarter premium renewal rate rose compared to Q4 2020, averaging 3.74%. Q1 premium renewal rate experienced its high in February at 3.93 and reached its low in March at 3.61%.
- Commercial Property: Average premium renewal rate change for Commercial Property increased quarter over quarter at 5.81% versus 5.62% in Q4 2020. The quarter premium renewal rate change reached its low of 5.63% at the beginning of the quarter in January and experienced its high in February at 6.13%.
- Umbrella: Q1 premium renewal rate change averaged 4.24%, rising from 3.46% in Q4 2020. Umbrella premium renewal rate change began the quarter with a high of 4.29% and ended with a quarter low of 4.18%.
- Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -1.37%, up from Q4 2020 at -2.13%. The quarter premium renewal rate change reached its high of -1.02% at the start of the quarter in January and ended the quarter at its low of -1.64%.
“The IVANS Index is showing early indications of hardening market conditions in 2021 as average premium renewal rates in the majority of the major commercial lines of business increased relative to Q4 2020,” said Kathy Hrach, vice president of Product Management, IVANS Insurance. “While Commercial Auto and BOP are among those that decreased quarter over quarter, they reflect small downticks compared to the large increases in premium renewal rates that other lines of business experienced last quarter.”
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 33,000 agencies and 430 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. IVANS Index is available to agencies and insurers as part of Market Insights at markets.ivansinsurance.com.
Download the complete Q1 2021 IVANS Index report here.
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About IVANS
IVANS, a division of Applied Systems, is the insurance industry’s exchange connecting insurers, MGAs, agencies, and the insured. IVANS cloud-based software automates the distribution and servicing of insurance products. For more than 30 years, IVANS innovation and expertise has connected 33,000 independent insurance agencies and 430 MGA and insurer partners to enable millions of people to safeguard and protect what matters most in people’s lives.
CONTACT: Lauren Malcolm IVANS Insurance Solutions 4048420055 lmalcolm@appliedsystems.com