Risk Management

Prices rise for all major commercial lines but comp: Ivans

Matthew Lerner

April 27, 2022 Reprints

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All major commercial lines of business saw positive first-quarter 2022 premium renewal rate changes, except workers compensation, according to a report Thursday from Ivans Insurance Services, a division of Tampa, Florida-based Applied Systems Inc.

Commercial property and umbrella coverages saw an increase in average premium renewal rate changes compared with fourth-quarter 2021 while commercial auto, business owners policy, general liability and comp saw drops in average premium renewal rate changes compared with fourth-quarter 2021.

Commercial auto first-quarter average premium renewal rate change averaged 4.22%, a decrease compared with fourth-quarter 2021’s average premium renewal rate change of 4.69%. The quarter reached its lowest rate in February, averaging 4.06% and ended with its highest of 4.47% in March.

Business owners policy premium renewal rate change averaged 5.32% in the first quarter compared with 5.58% in fourth-quarter 2021. January and March saw a premium renewal rate change of 5.28% and February hit 5.41%.

General liability’s first-quarter premium renewal rate change averaged 4.3%, down from 4.41% in fourth-quarter 2021. The renewal rate change saw its low in February at 4.11% and hit its high in March at 4.56%.

Commercial property saw an average first-quarter premium renewal rate change of 6.16%, up from 5.95% in fourth-quarter 2021. The premium renewal rate change reached its low of 6.01% in February and its high in March at 6.29%.

The first-quarter premium renewal rate change averaged 5.77% for umbrella coverage, up from 5.13% in fourth-quarter 2021. The umbrella premium renewal rate change hit its low of 4.68% in February and reached its quarter high of 7.04% in March.

The comp premium renewal rate change was down an average of 1.23%, down from fourth-quarter 2021 at -1.16%. The quarter premium renewal rate change reached its high of -0.95% in February and ended the quarter at its low of -1.48%.

“We are seeing that our data is consistent with macroeconomic trends, like inflation, as average premium renewal rates continue to rise,” said Kathy Hrach, vice president of product management for Ivans.