IVANS Index Q4 and 2019 Results Released

January 14, 2020

Insurance industry premium renewal rate experiences uptick across nearly all major commercial lines products

TAMPA, Fla. – January 14, 2020 – IVANS®, a division of Applied Systems®, today announced the results for Q4 and year-end 2019 IVANS Index™, the insurance industry’s premium renewal rate index. Q4 results showed an increase premium renewal rate change average across Commercial Auto, Business Owner’s Policy, General Liability, Umbrella, and Commercial Property compared to Q3; however, Workers’ Compensation average premium renewal rate change dropped and remained in negative territory, which was consistently negative throughout all of 2019. Notably, Commercial Auto, BOP, and Commercial Property all ended the year with its highest average premium renewal rate change.

Premium renewal rate change by line of business for Q4 and 2019 highlights includes:

• Commercial Auto: Premium renewal rate change averaged 4.52% for the quarter, with a quarter high in December at 5.12% and low in November at 4.12%. The year high and low premium renewal rate change was 5.12% and 4.03% in December and July respectively.
• BOP: Quarter premium renewal rate change averaged 4.57%, representing an increase over last quarter’s average of 4.17%. BOP premium renewal rate change finished the quarter at 4.75% in December. The year high and low premium renewal rate change occurred in December and February at 4.75% and 3.94% respectively.
• General Liability: Q4 premium renewal rate change increased from Q3, averaging 2.60% change relative to 2.51%. The quarter premium renewal rate change reached its low of 2.49% at the start of the quarter in October. General liability average premium renewal rate change was lowest in Q1 for 2019, reaching a year low in January at 1.16%, and hit a high in December at 2.78%.
• Commercial Property: Q4 premium renewal rate change rose again quarter over quarter, with an average rate change of 4.46% as compared to 4.20% in Q3. Commercial Property premium renewal rate change reached its high for 2019 in Q4 at 4.65% in December. The 2019 year high average premium renewal rate change was in December (4.65%) and the lowest in April at 3.69%.
• Umbrella: Q4 premium renewal rate change averaged 2.61% versus 2.66% in Q3. Umbrella premium renewal rate change reached its quarter high in December at 2.71%. The year low and high premium renewal rate change occurred in January and February at 2.17% and 3.06% respectively.
• Workers’ Compensation: Average premium renewal rate change for the quarter reached -2.84%, up from the Q3 average of -2.92%. January marked the lowest premium renewal rate change of the year at -1.04% for Workers’ Compensation, with March experience the most significant average premium renewal rate change at -4.43%.

“We saw a trend of most premium renewal rate changes hitting year-end highs in December, and a trend of most Commercial Lines increasing in Q4 with the exception of Umbrella,” said Brian Wood, vice president of Data Products Group, IVANS Insurance. “As we head into 2020, the IVANS Index will continue to enable agents to provide guidance to clients on expected premium changes while delivering the market intelligence to insurers for 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 400 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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About IVANS
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 30 years, IVANS innovation and expertise has connected 32,000 independent insurance agencies and 430 MGA and insurer partners to enable millions of people to safeguard and protect what matters most in people’s lives.