Line by line

Here is a breakdown of the premium renewal rate change by line of business for the fourth quarter, as well as 2018 highlights.

Commercial Auto: Premium renewal rate change averaged 4.66% for the quarter, with a quarter high in October at 4.81% and ending the quarter at its low of 4.51% in December. 2018 average premium renewal rate change for commercial auto was higher compared to 2017 throughout the entire year, peaking in September with an average premium renewal rate change at 4.50% in 2018 versus 2.55% in 2017.
BOP: Quarter premium renewal rate change averaged 4.23%, representing an increase over last quarter's average of 4.15%. BOP premium renewal rate change finished the quarter at 4.23% in December. Relative to other lines of business, BOP's average premium renewal rate experienced the most variability between 2018 and 2017.
General Liability: Premium renewal rate change increased from the third quarter, averaging 2.54% change relative to 2.35%. The quarter premium renewal rate change reached its low of 2.23% at the quarter's end in December. General liability started out 2018 in January and February with lower average premium renewal rate than 2017, averaging 0.44% higher from March through the remainder of 2018 across the same period of time the year prior.
Commercial property: Premium renewal rate change rose again quarter-over-quarter with an average rate change of 3.74% as compared to 3.34% in the third quarter. Commercial property premium renewal rate change reached its high for 2018 in the fourth quarter at 3.95% in December. 2018 average premium renewal rate change for commercial property was higher compared to 2017, with the exception of June at 3.24% in 2018 versus 3.52% in 2017.
Umbrella: Fourth quarter premium renewal rate change averaged 2.42% versus 1.93% in the third quarter. Umbrella premium renewal rate change reached its high for 2018 in the fourth quarter at 2.76% in November. 2018 average premium renewal rate change for umbrella was higher compared to 2017, averaging .70% higher year-over-year.
Workers' compensation: Average premium renewal rate change for the quarter reached -3.04%, down from the third quarter's average of -2.76%. 2018 average premium renewal rate change for workers' compensation was consistently more negative compared to 2017, with the exception of December which ended at -2.66% in 2018 versus -2.92% in 2017.

The IVANS Index is a data-driven monthly and quarterly report that forecasts current insurance business conditions and trends based on analysis of more than 120 million data transactions from more than 30,000 agencies and 380 insurers and MGAs. The complete Q4 and Year-End 2018 IVANS Index report is available here.

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IVANS Q4: Nearly all major commercial lines saw rate change increases

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