IVANS Index Q4 and 2018 Results Released
January 10, 2019
Insurance industry premium renewal rate experiences uptick across nearly all major commercial lines products
Tampa, FL – January 10, 2019 – IVANS, a division of Applied Systems, today announced the results for Q4 and year-end 2018 IVANS Index, the insurance industry’s premium renewal rate index. Q4 results showed an increase premium renewal rate change average across nearly all major commercial lines compared to Q3; however, Workers’ Compensation average premium renewal rate change dropped and remained in negative territory, which was consistent with the 2018 annual results. Notably, Commercial Auto, General Liability, Commercial Property and Umbrella all experienced the greatest premium renewal rate change from the year prior in Q4.
Premium renewal rate change by a line of business for Q4 and 2018 highlights includes:
- Commercial Auto: Premium renewal rate change averaged 4.66% for the quarter, with a quarter high in October at 4.81% and ending the quarter at its low of 4.51% in December. 2018 average premium renewal rate change for Commercial Auto was higher compared to 2017 throughout the entire year, peaking in September with an average premium renewal rate change at 4.50% in 2018 versus 2.55% in 2017.
- BOP: Quarter premium renewal rate change averaged 4.23%, representing an increase over last quarter’s average of 4.15%. BOP premium renewal rate change finished the quarter at 4.23% in December. Relative to other lines of business, BOP’s average premium renewal rate experienced the most variability between 2018 and 2017.
- General Liability: Q4 premium renewal rate change increased from Q3, averaging 2.54% change relative to 2.35%. The quarter premium renewal rate change reached its low of 2.23% at quarter’s end in December. General Liability started out 2018 in January and February with lower average premium renewal rate than 2017, averaging 0.44% higher from March through the remainder of 2018 across the same period of time the year prior.
- Commercial Property: Q4 premium renewal rate change rose again quarter over quarter, with an average rate change of 3.74% as compared to 3.34% in Q3. Commercial Property premium renewal rate change reached its high for 2018 in Q4 at 3.95% in December. 2018 average premium renewal rate change for Commercial Property was higher compared to 2017, with the exception of June at 3.24% in 2018 versus 3.52% in 2017.
- Umbrella: Q4 premium renewal rate change averaged 2.42% versus 1.93% in Q3. Umbrella premium renewal rate change reached its high for 2018 in Q4 at 2.76% in November. 2018 average premium renewal rate change for Umbrella was higher compared to 2017, averaging .70% higher year over year.
- Workers’ Compensation: Average premium renewal rate change for the quarter reached -3.04%, down from Q3 average of -2.76%. 2018 average premium renewal rate change for Workers’ Compensation was consistently more negative compared to 2017, with the exception of December, which ended at -2.66% in 2018 versus -2.92% in 2017.
“The end of 2018 experienced the greatest change in premium renewal rates from the year prior for nearly all major commercial lines products,” said Brian Wood, vice president of Data Products Group, IVANS Insurance. “As we begin 2019, the IVANS Index will continue to provide data-driven insights into the health of the industry, enabling brokerages to give more accurate premium renewal guidance to customers and serving as a valuable reference to insurers when determining 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 32,000 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 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 35 years, IVANS innovation and expertise has connected 32,000 independent insurance agencies and 400 MGA and insurer partners to enable millions of people to safeguard and protect what matters most in people’s lives.