Business Owner's Policy received a slight uptick in premium renewal rate change average throughout the second quarter, according to the new, monthly premium renewal rate report produced by IVANS, a division of Applied Systems.
Workers' compensation moved back into negative premium renewal rate change territory, however, at the end of June following positive territory in May.
The results come to light in June’s IVANS Index report, which provides data-driven insurance industry insights gleaned from agent and carrier transactions. Each month, the report summarizes market conditions and trends for premium rate renewal changes by analyzing more than 120 million transactions placed by more than 30,000 agencies and 380 insurers or managing general agents (MGAs).
Premium renewal rate change by line of business for Q2 includes:
- Commercial Auto: Premium renewal rate change averaged 2.57% for the quarter, ending at 2.41% for June; premium renewals have held steady in a very narrow range of 2.66% for the quarter.
- Business Owner’s Policy (BOP): Quarter premium renewal rate change averaged 4.21%, representing an increase over last quarter’s average of 3.89%. BOP premium renewal rate change finished the quarter at 4.11% in June.
- General Liability: Q2 premium renewal rate change was slightly more variable relative to Q1. The quarter premium renewal rate change low reached 1.46% in May and ended the quarter in June at 2.22%.
- Commercial Property: Q2 reversed the downward premium renewal rate change trend of Q1, with rates moving to 3.52% in June from an average of 2.66% in Q1.
- Umbrella: Quarter premium renewal rate change averaged 0.94% vs. 1.04% in Q1.
- Workers’ Compensation: Q2 experienced the first positive premium renewal rate change of 2017 in May at 0.58%, but quarterly average remained in negative territory at -0.16%.
“Premium renewal rate change across the industry remained consistent for the quarter, with greater variability experienced by General Liability and Workers’ Compensation insurance,” Matt Foran, vice president of IVANS Markets, said in a statement. “IVANS Index continues to provide unique data insights on premium renewal trends that are influencing renewal and pricing strategies.”