Overall in 2024, the average premium renewal rate change was higher for most commercial lines of business compared to 2023, with only general liability and workers’ comp seeing slightly lower changes. (Credit: leszekglasner/Adobe Stock)
The average premium renewal rate change for all major commercial lines of business except for workers’ compensation is up year over year, according to the Q4 2024 Ivans Index report.
In Q4 2024, Ivans reports commercial auto, BOP and umbrella policies all saw an increase in the average premium renewal rate change. General liability, commercial property and workers’ comp, however, all experienced a decrease.
The report notes that commercial auto ended 2024 with its highest average premium renewal rate change. Overall, the average premium renewal rate change was higher for most commercial lines of business compared to 2023, with only general liability and workers’ comp seeing slightly lower changes. The commercial property average change was consistently higher compared to all other lines of business in 2024.
Below, we’ll break down the significant findings for each line of business from the Q4 2024 Ivans Index.
Commercial auto
The average premium renewal rate for commercial auto policies in Q4 2024 averaged 9.82%, which is up from 9.71% in Q3. October saw the lowest rate change of the quarter at 9.62% and December had the highest at 9.99%.
Business owner’s policy (BOP)
For BOP, premium rate renewal averaged 9.09% in Q4 2024, which is an increase from 8.68% in Q3. The lowest rate was seen in October at 8.72% and the highest premium renewal rate was 9.59% in December.
General liability
When it comes to general liability, there was a decrease in the premium renewal rate from 4.28% in Q3 2024 to 3.98% in Q4. Premium renewal rates stayed constant at an average of 3.89% in October and November before ending December at 4.16%
Commercial property
Commercial property also saw a decrease in the average premium renewal rate from Q3 to Q4 2024; falling from 11.69% to 11.11%. The quarter’s highest rate for commercial property was in October at 11.24% with a low in November of 10.98%.
Umbrella
The average premium renewal rate for umbrella coverage increased slightly from 8.56% in Q3 2024 to 8.76% in Q4. The lowest rate of the quarter was seen in October at 8.49%, with the highest rate occurring in December at 9.09%.
Workers’ compensation
The workers’ compensation premium renewal rate averaged -1.47% in Q4 2024, down from -1.28% in Q3. In October, it saw its highest rate of the quarter at -1.43% with its lowest rate in November at -1.52%.
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