Premium renewal rates rise in all sectors but comp: Ivans
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Insurance premium renewal rates in the fourth quarter rose across nearly all major commercial lines compared with the previous quarter, except in workers compensation, according to the 2018 Ivans Index.
Premium renewal rate changes in commercial auto averaged 4.66% in the fourth quarter, which was higher than any quarter in the previous year, which saw its high in September 2017 with an average premium renewal rate change of 4.5%.
In the business owner policy sector, the fourth-quarter premium renewal rate change averaged 4.23%, which was 0.8% greater than in the third quarter. According to Ivans, BOP experienced the most variability in average premium renewal rates between 2017 and 2018.
Although general liability began 2018 with lower average premium renewal rates, the rate change rose 0.44% in March 2018 compared with the same quarter in 2017. That trend continued with the premium renewal rate change averaging 2.54% in the fourth quarter, an increase of 0.19% compared with the third quarter.
Commercial property experienced quarter over quarter increases in 2018, ending with an average rate change of 3.74% in the fourth quarter, which was 0.4% higher than the third quarter. Umbrella also experienced higher premium renewal rate changes in 2018, finishing the fourth quarter with an average renewal rate change of 2.42%, an increase of 0.7% over 2017.
Workers comp average premium renewal rates, however, dropped to -3.04% from the third-quarter average of -2.76%. The average premium renewal rate change in workers comp also consistently fell compared with 2017, except for during December.
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