Commercial insurance rates rise in second quarterPosted On: Jul. 5, 2017 10:22 AM CST
Nearly all major commercial insurance lines saw renewal rate increases in the second quarter, according to a report released by insurance exchange IVANS on Wednesday.
The was a slight uptick in premium renewal rate change average across business owner’s policy, commercial property, and workers compensation compared with the second quarter. Workers compensation moved back into negative premium renewal rate change territory at the end of the second quarter after moving into positive territory in May.
The 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, IVANS said.
Business owner’s policy 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.
The Tampa, Florida-based unit of insurance technology firm Applied Systems Inc. said that general liability’s second quarter premium renewal rate change was slightly more variable relative to the first quarter. The quarter premium renewal rate change low reached 1.46% in May and ended the quarter in June at 2.22%.
Commercial property in the second quarter reversed the first quarter’s downward premium renewal rate change trend, with rates moving to 3.52% in June from an average of 2.66% in the first quarter.
Umbrella quarter premium renewal rate change averaged 0.94% compared with 1.04% in the first quarter.
Workers compensation in the second quarter reported the first positive premium renewal rate change of 2017 in May at 0.58%, but quarterly average remained in negative territory at -0.16%.
The monthly IVANS Index is a data-driven report of current conditions and trends for premium rate renewal change of the most placed commercial lines of business in the insurance industry. The index analyzes more than 120 million data transactions and measures the premium difference year-over-year, the company said.