Commercial insurance rates rise in Q1: IvansPosted On: Apr. 8, 2020 10:35 AM CST
All major commercial property/casualty lines of business saw higher average premium renewal rates in the first quarter of 2020, compared with the prior quarter, and a ‘marked change’ is coming due to COVID-19, insurance exchange Ivans Insurance Services said in a report Wednesday.
Commercial property led the pack with a record quarterly high as rates increased 5.14%, but the average premium renewal rate change remained in negative territory for workers compensation, Tampa, Florida-based Ivans said in its analysis.
“Q1 2020 experienced an increase in premium renewal rate change across all major commercial lines, and we expect to see marked change in the coming months as the industry responds to the COVID-19 pandemic,” Brian Wood, vice president of Data Products Group, Ivans Insurance Services said in a statement.
Commercial auto rates rose 4.81%, a first-quarter high for the third straight year, and up from 4.52% in the fourth quarter of 2019, Ivans said.
Business owners policy rates rose 4.65% in the quarter compared with last quarter’s average of 4.57% and general liability rates increased 3.08% up from 2.60% in the prior quarter.
Umbrella liability rates increased at a rate of 3.06%, also up from 2.61% in the fourth quarter of 2019.
Workers compensation rates fell by 1.81%, albeit higher than the average 2.84% decrease the prior quarter.
Similarly another pricing survey from MarketScout on Monday said commercial insurance buyers in the U.S. saw average rate increases of 4.5% in the first quarter, but cautioned that COVID-19 will have a ‘dramatic’ impact going forward.
More insurance and risk management news on the coronavirus crisis here.