Q3 premium renewal rate hikes nearly across board: Ivans
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Commercial auto, business owners policy, general liability, commercial property, and umbrella coverages experienced increases in average premium renewal rates for the third quarter compared with the second, while premium renewal rates decreased for workers compensation, according to a report Thursday from Ivans Insurance Services, a unit of Applied Systems Inc.
Commercial property saw the largest average third-quarter premium renewal rate change at 10.08% compared with 9.77% in second-quarter 2023. The quarter’s lowest average rate change was in July at 9.74%, and the highest in August at 10.56%.
Business owners policy had the second-highest average premium renewal rate increase at 7.74% compared with 7.56% in second-quarter 2023. The highest premium renewal rate change was in August, averaging 7.84%, and the lowest in September at 7.56%.
Commercial auto had a third-quarter average premium renewal rate of 7.01% compared with 6.50% in the second quarter. The lowest rate change was in July at 6.62%, and the highest in September at 7.40%.
For general liability, the third-quarter average premium renewal rate was 5.43% compared with second-quarter’s 5.21%. The average premium renewal rate was highest in August at 5.61% and lowest in September at 5.32%.
Umbrella coverage rates had a third-quarter average premium renewal rate change of 5.29% compared with 5.12% in the second quarter. The lowest rate change was in July averaging 4.90%, and the highest in August, averaging 5.76%.
Workers compensation was the only line with a decline in third-quarter average premium renewal rate at -0.98%, compared with second quarter’s -1.10%. The highest average rate change was in July at -0.52%, and the lowest in September at -1.37%.
“This quarter’s Ivans Index shows that nearly across the board the hard market continues as rate increases further hike north,” Kathy Hrach, vice president of product management for Ivans, said in a statement with the data.
