Business Owner's Policy received a slight uptick in premiumrenewal rate change average throughout the secondquarter, according to the new, monthly premium renewalrate report produced by IVANS, adivision of AppliedSystems.
|Workers' compensation moved back into negative premium renewalrate change territory, however, at the end of June followingpositive territory in May.
|Related: Good news for N.Y. state employers: Workers' comppremiums to be reduced by $400M
|The results come to light in June's IVANS Index report, whichprovides data-driven insurance industry insights gleaned from agentand carrier transactions. Each month, the report summarizes marketconditions and trends for premium rate renewal changes by analyzingmore than 120 million transactions placed by more than 30,000agencies and 380 insurers or managing general agents (MGAs).
|Premium renewal rate change by line of business for Q2includes:
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- Commercial Auto: Premium renewal ratechange 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 changeaveraged 4.21%, representing an increase over last quarter'saverage of 3.89%. BOP premium renewal rate change finished thequarter at 4.11% in June.
- General Liability: Q2 premium renewalrate change was slightly more variable relative to Q1. The quarterpremium renewal rate change low reached 1.46% in May and ended thequarter in June at 2.22%.
- Commercial Property: Q2 reversed thedownward premium renewal rate change trend of Q1, with rates movingto 3.52% in June from an average of 2.66% in Q1.
- Umbrella: Quarter premium renewal rate changeaveraged 0.94% vs. 1.04% in Q1.
- Workers' Compensation: Q2 experiencedthe first positive premium renewal rate change of 2017 in May at0.58%, but quarterly average remained in negative territory at-0.16%.
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"Premium renewal rate change across the industry remainedconsistent for the quarter, with greater variability experienced byGeneral Liability and Workers' Compensation insurance," Matt Foran,vice president of IVANS Markets, said in a statement. "IVANS Indexcontinues to provide unique data insights on premium renewal trendsthat are influencing renewal and pricing strategies."
|Related: 18 emerging risks for the insurance industry, itscustomers and society at large
|Want to continue reading?
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