Ivans® announced the results for Q1 2023 IVANS Index™, the insurance industry’s premium renewal rate index. The first quarter results of 2023 showed premium renewal rate change for all major commercial lines of business except Workers’ Compensation are up year over year. Q1 experienced an increase in average premium renewal rate change across Commercial Auto, BOP, Commercial Property, Umbrella and Workers Compensation compared to Q4 2022; General Liability experienced a decrease in average premium renewal rates compared to Q4 2022.
Premium renewal rate change by line of business for Q1 2023 highlights includes:
Commercial Auto: Q1 average premium renewal rate averaged 5.85%, an increase compared to Q4 2022’s average premium renewal rate of 5.62%. The quarter reached its lowest rate in February, averaging 5.64% and ended with its highest of 6.07% in March.
BOP: BOP premium renewal rate increased in Q1 with an average of 7.12% versus 7.01% in Q4 2022. The quarter began with the lowest premium renewal rate change of 6.87% and reached its highest rate in March, averaging an increase of 7.31%.
General Liability: First quarter premium renewal rate experienced a decrease compared to Q4 2022, averaging 5.23% versus 5.49%. Q1 premium renewal rate experienced its low in March at 4.98% and reached its high in February at 5.37%.
Commercial Property: Average premium renewal rate change for Commercial Property increased quarter over quarter at 8.89% versus 7.95% in Q4 2022. The quarter premium renewal rate change reached its low of 8.67% in January and experienced its high in March at 9.14%.
Umbrella: Q1 premium renewal rate change averaged 5.08%, rising from 4.94% in Q4 2021. Umbrella premium renewal rate change experienced its low of 4.67% in March and reached its quarter high of 5.59% in January.
Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -1.36%, up from Q4 2022 at -1.48%. The quarter premium renewal rate change reached its high of -0.9% in February and started the quarter at its low of -1.85%.
Released monthly, 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 34,000 agencies and 450 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.