Commercial insurance rates continue upward trend in most linesPosted On: Oct. 4, 2017 9:15 AM CST
Commercial insurance pricing rose across several lines in the third quarter of 2017, with workers compensation being the only line reporting a rate decrease, according to the IVANS insurance exchange.
Premium renewal rate change for commercial auto averaged 3% for the quarter, up from the second quarter of 2017 and ending at 2.55% for September, the Tampa, Florida-based unit of insurance technology firm Applied Systems Inc. said Tuesday in a statement.
Business owners third-quarter premium renewal rate changes averaged 3.79%, down from last quarter’s average of 4.21%. Rate changes finished the quarter at 3.87% in September.
General liability third-quarter premium renewal rate changes saw limited variability relative to the second quarter. The quarterly premium renewal rate change low reached 1.68% in August and ended the quarter in September at 1.70%.
Commercial property premium renewal rate changes decreased quarter-over-quarter, with an average rate change of 2.48% compared with 3.08% in the second quarter.
Umbrella third-quarter premium renewal rate changes averaged 1.47% compared with 0.94% in the second quarter.
Workers compensation premium renewal rate change dipped again in the third quarter, averaging minus 1.18% compared with minus 0.16% in the second quarter.
“Premium renewal rate change across the industry remained consistent for the quarter, with greater variability experienced by commercial property and workers compensation insurance quarter-over-quarter,” Matt Foran, vice president of IVANS Markets, said in the statement. “IVANS Index continues to demonstrate positive momentum for the market.”
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.