Most commercial lines see rate increases accelerate in Q2 renewals
Posted On: Jul. 21, 2022 11:03 AM CST
Most major lines of commercial insurance experienced quarter-over-quarter increases in average premium renewal rate change, with umbrella a notable exception, Ivans Insurance Services reported Thursday.
In commercial property lines, the average premium renewal rate change increased 6.4% quarter over quarter, up from 6.16% in the first quarter, Tampa, Florida-based Ivans said. The quarterly premium renewal rate change reached its low of 6.05% in April and its high in June at 6.67%.
The business owners policy premium renewal rate change increased an average of 5.69% in the second quarter, up from 5.32% in the first quarter. The low of 5.56% was in April and the high of 5.83% in June.
The commercial auto lines average premium renewal rate change was 5.05%, up from 4.22% in the first quarter. The average premium renewal rate change was highest in April at 5.2% and lowest in June at 4.92%.
General liability lines saw an average premium renewal rate increase of 4.76%, up from the first quarter’s 4.3%. The low was in April at 4.64% and the high in May at 4.85%.
Workers compensation had an average premium renewal rate decline of 0.73%, an increase from the first quarter’s 1.23% decrease. The premium renewal rate change experienced its low of -0.91% in April and ended the quarter at its high of -0.43.
Umbrella coverage’s second quarter average premium renewal rate change of 5.19% was a decline from the 5.77% seen in the first quarter. The low of 5.12% was in May and the high of 5.29% in June.
“This quarter’s Ivans Index continues to show average premium renewal rate changes tracking alongside other hard market macroeconomic trends,” Kathy Hrach, vice president of product management for Ivans, said in a statement with the report.
Ivans, a division of University Park, Illinois-based Applied Systems Inc., tracks more than 120 million data transactions and includes more than 34,000 agencies and 450 insurers and managing general agents in its monthly analysis.