Rate increases accelerate in December: ReportPosted On: Jan. 14, 2020 11:31 AM CST
Commercial insurance prices continued to rise in most lines in December and throughout the fourth quarter of 2019, according to Ivans Insurance Solutions.
According to the insurance exchange’s premium renewal rate index for the fourth quarter released Tuesday, commercial auto rates increased 5.12% on average in December, business owners policy premiums increased 4.75%, commercial property increased 4.65%, general liability increased 2.78% and umbrella increased 2.71%. The only line to show a decrease in the month was workers compensation, where average renewal rates fell 3.05%.
“Notably, commercial auto, BOP, and commercial property all ended the year with their highest average premium renewal rate change,” Ivans said in the report, which it updates monthly.
For the quarter, average commercial auto renewal rates increased 4.52%, business owners policy renewals increased 4.57%, commercial property increased 4.46%, general liability increased 2.6% and umbrella rates increased 2.61%. Workers comp rates fell 2.84%, the report said.
For the year, rates hikes varied by line and by month but were consistently higher across all lines except workers comp, where average renewal rates fell each month, according to the report.