IVANS®, a division of Applied Systems®, today announced the August results of the IVANS Index™, the insurance industry’s premium renewal rate index. Year over year, all lines of business experienced an increase in average premium renewal rate, except Workers’ Compensation, which saw a negative change in premium. Month over month, August premium renewal rates experienced a positive change across General Liability, Commercial Property, BOP, Umbrella and Workers’ Compensations; Commercial Auto experienced negative changes in August.
Premium renewal rate change by line of business for August 2020 highlights include:
- Commercial Auto: 3.2%, down from 5.01% last month.
- BOP: 5.00%, up from 4.38% at the end of August.
- General Liability: 3.61%, up from 3.45% the month prior.
- Commercial Property: 5.48%, up from 5.42% in August.
- Umbrella: 3.27%, up from 3.23% the month prior.
- Workers’ Compensation: -2.51%, up from -2.66% last month.
“As the pandemic progresses, we continue to see a hardening in the market across all lines of business, but August showed a noticeable downshift in Commercial Auto as compared to July and will be a line of business to watch closely,” said Brian Wood, vice president of Data Products Group, IVANS Insurance Services. “While the data shows that rates are likely to stay up year over year and offset other negative impacts on the industry, the IVANS Index will continue to serve as a bellwether to provide guidance on the health of the industry.”
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.
Download the complete Q2 IVANS Index report here.