Average Premium Renewal Rates for Commercial Lines Remain High
Only Workers’ Compensation Bucks The Trend
Year-over-year average premium renewal rates for all major commercial lines, with the exception of Workers’ Compensation remain high says the latest Ivans Index Report for Q1-2024. The first quarter results of 2024 showed premium renewal rate change for all major commercial lines of business except Workers’ Compensation are up year over year. Q1 2024 experienced an increase in average premium renewal rate change across all major commercial lines compared to Q4 2023.
“This quarter’s Ivans Index results show that the premium renewal rates continue to increase across all major commercial lines, signaling continued hard market conditions,” said Kathy Hrach, senior vice president of Product Management, Ivans. “The continued rate increases of the hard market is being closely tracked across the industry as renewals and remarketing become more and more important, and Ivans Index will continue to be a source of data on rate trends.”
A run-down of the rates for each of the major Commercial insurance lines:
Commercial Auto: Q1 2024 average premium renewal rate averaged 9.09%, an increase compared to Q4 2023’s average premium renewal rate of 8.79%. The quarter began with the lowest rate change in January, averaging 7.04%, and experienced its highest rate in February, averaging 10.30%.
BOP: BOP premium renewal rate increased in Q1 2024 with an average of 9.30% versus 9.12% in Q4 2023. The quarter reached its highest premium renewal rate change in February, averaging 9.72% and ended with its lowest rate of 8.84% in March.
General Liability: First quarter 2024 premium renewal rate experienced a slight increase compared to Q4 2023, averaging 5.89% versus 5.83%. The quarter began with the lowest rate change in January, averaging 5.38%, and reached its highest rate in February, averaging 6.21%.
Commercial Property: Average premium renewal rate change for Commercial Property experienced an increase during Q1 2024 at 10.52% versus 10.34% in Q4 2023. The quarter began with the lowest rate change in January, averaging 10.30%, and reached its highest rate in February, averaging 10.77%.
Umbrella: Average premium renewal rate change for Umbrella experienced an increase during Q1 2024 at 6.81% versus 6.39% in Q4 2023. The quarter began with the lowest rate change in January, averaging 6.35%, and ended with its highest rate in March, averaging 7.10%.
Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -0.88% in Q1 2024, down from Q4 2023 at -0.64%. The quarter reached its highest premium renewal rate change in February, averaging -0.40% and ended with its lowest rate of -1.57% in March.
More about the monthly Ivans Index Report
Released monthly, 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 38,000 agencies and 600 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.
