Nearly all major commercial product lines saw their Q2 2017 premium renewal rates increase slightly compared to last year. Workers compensation, however, saw renewal rates move back into the negative, according to the second quarter IVANS index.

IVANS, a division of Applied Systems, said there was a slight uptick of the renewal rate average across Business Owner’s Policy, Commercial Property, and Workers’ Compensation compared to Q1. But Workers’ Compensation returned to negative premium renewal rate change territory at the end of Q2, after ticking upward in May.

Here are the average premium renewal rate changes by line of business for Q2, as tabulated by IVANS:

• Commercial Auto: About 2.57 percent for the quarter, ending at 2.41 percent for June. Premium renewals have held steady in a very narrow range of 2.66 percent for the quarter.
• Business Owner’s Policy: For the quarter, the premium renewal rate change averaged 4.21 percent, versus the previous quarter’s average of 3.89 percent. For this line of cover, premium renewal rate change finished the quarter at 4.11 percent in June.
• General Liability: The quarter premium renewal rate change low reached 1.46 percent in May and ended the quarter in June at 2.22 percent, displaying more variability than in
• Commercial Property: Rates moved an average of 3.52 percent higher in June from an average of 2.66 percent in Q1. Q2 results reversed a downward premium renewal rate change trend seen in the first quarter.
• Umbrella: For the quarter, the premium renewal rate change averaged 0.94 percent, compared to 1.04 percent in Q1.
• Workers’ Compensation: The quarter started out with the sector’s first positive premium renewal change in 2017, at 0.58 percent higher on average. The quarterly average stayed negative, however, at -0.16 percent.

The IVANS Index, released monthly, 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.

You can download the complete Q2 2017 IVANS Index report here.

Source: IVANS/Applied Systems