Average premium renewal rates experience general uptick across all major commercial products compared to last year, ending in December with the highest rate changes documented by IVANS Index
TAMPA, Fla., Jan. 28, 2022 (GLOBE NEWSWIRE) — IVANS Insurance Solutions today announced the results for Q4 and year-end 2021 IVANS Index™, the insurance industry’s premium renewal rate index. The fourth quarter results showed an increase in the average premium renewal rate change across all major commercial lines of business year over year; however, Workers’ Compensation average premium renewal rate change remained in negative territory, as it did throughout all of 2021. Compared to the prior quarter, Q4 experienced an increase in average premium renewal rate change across all major commercial lines of business.
Premium renewal rate change by line of business for Q4 and 2021 highlights includes:
- Commercial Auto: Average premium renewal rate change averaged 4.69% for the quarter and ended the year with 4.55% in December, which was also the quarter low. The quarter high was in November at 4.89%.
- BOP: Q4 premium renewal rate change averaged 5.58%, representing an increase over last quarter’s average of 5.05%. BOP premium renewal rate change finished the quarter at 5.77% in December.
- General Liability: Q4 premium renewal rate change increased from Q3, averaging 4.41% relative to 4.21%. The quarter average premium renewal rate change reached its low of 4.18% at the start of the quarter in October and ended the year in December with the quarter high of 4.78%.
- Commercial Property: Q4 premium renewal rate change rose quarter over quarter, with an average rate change of 5.95% as compared to 5.77% in Q3. Commercial Property average premium renewal rate change reached its high for 2021 in December at 6.14%.
- Umbrella: Q4 premium renewal rate change averaged 5.13% versus 4.85% in Q3. Umbrella average premium renewal rate change reached its quarter low in November at 4.97% and its high in December at 5.40%.
- Workers’ Compensation: Average premium renewal rate change for the quarter reached -1.16%, up from the Q3 average of -1.40%. Workers’ Compensation began the quarter with its low at -1.57% in October and reached its high in November at -0.75%.
Notably, BOP, General Liability, Commercial Property and Umbrella ended the year with their highest average premium renewal rate change. Commercial Property premium renewal rate change averaged consistently higher compared to all other lines of business in 2021.
“Most major commercial lines of business ended the year with their highest average premium renewal rates since the IVANS Index began in 2017,” said Kathy Hrach, vice president of Product Management, IVANS Insurance. “As the average premium renewal rate changes become influenced by macroeconomic trends, like inflation and economic uncertainty, we will continue to track how these commercial lines of business fair in 2022.”
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 Q4 and Year-End 2021 IVANS Index report here.
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About IVANS
IVANS 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
