Second Quarter IVANS Index Continues to Show Positive Results
Premium renewal rate up year over year across nearly all major commercial product lines; Workers’ Compensation moves back into negative territory
Tampa, FL – July 5, 2017 – IVANS, a division of Applied Systems, today announced the second quarter results of the IVANS Index, the industry’s premium renewal rate index. Q2 results showed a slight uptick in premium renewal rate change average across Business Owner’s Policy, Commercial Property, and Workers’ Compensation compared to Q1; however, Workers’ Compensation moved back into negative premium renewal rate change territory at the end of Q2 following positive territory in May.
Premium renewal rate change by line of business for Q2 includes:
- Commercial Auto: Premium renewal rate change averaged 2.57% for the quarter, ending at 2.41% for June; premium renewals have held steady in a very narrow range of 2.66% for the quarter.
- Business Owner’s Policy (BOP): Quarter premium renewal rate change averaged 4.21%, representing an increase over last quarter’s average of 3.89%. BOP premium renewal rate change finished the quarter at 4.11% in June.
- General Liability: Q2 premium renewal rate change was slightly more variable relative to Q1. The quarter premium renewal rate change low reached 1.46% in May and ended the quarter in June at 2.22%.
- Commercial Property: Q2 reversed the downward premium renewal rate change trend of Q1, with rates moving to 3.52% in June from an average of 2.66% in Q1.
- Umbrella: Quarter premium renewal rate change averaged 0.94% vs. 1.04% in Q1.
- Workers’ Compensation: Q2 experienced the first positive premium renewal rate change of 2017 in May at 0.58%, but quarterly average remained in negative territory at -0.16%.
“Premium renewal rate change across the industry remained consistent for the quarter, with greater variability experienced by General Liability and Workers’ Compensation insurance,” said Matt Foran, vice president of IVANS Markets. “IVANS Index continues to provide unique data insights on premium renewal trends that are influencing renewal and pricing strategies.”
Released on a monthly basis, 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. Analyzing more than 120 million data transactions, the IVANS Index premium renewal rate change measures the premium difference year over year for a single consistent policy. Inclusive of more than 30,000 agencies and 380 insurers and MGAs, the IVANS Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market. IVANS Index is available to agencies and insurers as part of Market Insights at markets.ivansinsurance.com.
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IVANS, a division of Applied Systems, is the property and casualty insurance industry’s exchange connecting insurers, MGAs, agencies, and the insured. IVANS cloud-based software automates the distribution and servicing of insurance products. For more than 30 years, IVANS innovation and expertise has connected 30,000 independent insurance agencies and 380 MGA and insurer partners to enable millions of people to safeguard and protect what matters most in people’s lives.