Ivans, a division of Applied Systems, reported the rate of change for all major commercial lines of business except Workers’ Compensation and Umbrella increased year over year, the second quarter of 2023.
According to Ivans, Q223 experienced an increase in average premium change rate across Commercial Auto, BOP, Commercial Property, Umbrella and Workers’ Compensation compared to Q123, while General Liability experienced a slight decrease.
Commercial Auto premiums averaged 6.50% for Q2, compared to Q123’s average premium change rate of 5.85%.
Ivans noted that the quarter started with the lowest rate change in April, which averaged 6.16%, and reached the highest rate in May, which averaged 6.80%.
At the same time, the BOP premium increased in Q2 with an average of 7.56%, compared to 7.12% in Q123. However, the quarter reached its lowest rate of premium change in May, which averaged 7.44% and ended with the highest rate of 7.64% in June.
For General Liability, Q2 premium experienced a slight decrease compared to Q123, averaging 5.21% compared to 5.23%. The Q223 premium renewal rate experienced its low in May at 4.56% and reached its high in June at 5.58%.
Moving to Commercial Property, the premium renewal rate experienced an increase during Q2 at 9.77% compared to 8.89% in Q123. Ivans highlighted how the quarter started with the highest rate change in April, which averaged 10.09%, and reached the lowest rate in June, which averaged 9.34%.
In addition, the Umbrella premium renewal rate change witnessed an increase during Q2 at 5.12% versus 5.08% in Q123. The premium rate change in Q223 reached a low of 4.36% in May and experienced its high in June at 5.92%.
And finally, the rate of change in Workers’ Compensation premium change averaged -1.10% for Q2, up slightly from -1.36% in Q123%. The change in the premium change rate in Q2 2023 reached a low of -1.37% in May and ended the quarter at a high of -0.71%.
Commenting on the results, Kathy Hrach, vice president of Product Management, Ivans, said: “The Q2 results of the Ivans Index show that premium renewal rates continue to rise in line with other pricing trends in the broader macro environment.
“As we enter the second half of the year, the Index will see how changing regulations around hurricane season affect premium renewal rates and carrier and agent investment in certain lines of business based on profit opportunity.”
Released monthly, the Ivans Index is a data-driven report on current conditions and trends for premium rate renewal changes in the most commercial lines of business within the insurance industry.