August 3, 2017 by Canadian Underwriter
The premium renewal rate change for most standard commercial lines products in the United States remained in positive territory for July, with workers’ compensation representing the only standout, notes the latest IVANS Index.
The majority of standard commercial lines products – namely Auto, Business Owner’s Policy (BOP), General Liability, Property and Umbrella – saw positive premium renewal rates in July, notes a statement Wednesday from IVANS, a division of Applied Systems.
While all were in the positive zone, index figures show that some rate changes were lower at the end of July than at the end of June.
“Premium renewal rate change across the industry remained consistent, with Commercial Auto and Umbrella premium renewal rate change experiencing the greatest positive increase while Workers’ Compensation continues to trend more negatively,” Matt Foran, vice president of IVANS Markets, reports in the press release.
Specifically, rate changes by line of business for July are as follows:
“Workers’ Compensation is the one product that remains in the negative premium renewal rate, dipping below -1.00% for the first time this year,” IVANS reports. Specifically, at -1.41%, the premium renewal rate was down from -0.86% in June.
Figures from IVANS index report for 2017 Q2 shows a “slight uptick in premium renewal rate change average across BOP, Commercial Property and Workers’ Compensation compared to Q1.” However, WC “moved back into negative premium renewal rate change territory at the end of Q2 following positive territory in May.”
Other significant findings for the second quarter include the following:
Released monthly, the 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. It reflects the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market.