TAMPA, Fla., July 09, 2020 (GLOBE NEWSWIRE) -- IVANS®, a division of Applied Systems®, today announced the Q2 2020 results of the IVANS Index™, the insurance industry’s premium renewal rate index. Q2 results showed an increase in premium renewal rate change average across nearly all major commercial lines of business, including Commercial Auto, Business Owner’s Policy, General Liability, Umbrella, and Commercial Property compared to 2019; however, Workers’ Compensation average premium renewal rate change remained in negative territory. Notably, Business Owners Policy, General Liability, Property, and Umbrella experienced higher average premium renewal rate change from the quarter prior. Commercial Property continues to hit record premium renewal rate highs, experiencing the largest percentage jump of 5.51% in April.
Premium renewal rate change by line of business for Q2 2020 highlights include:
- Commercial Auto: Premium renewal rate change averaged 4.72% for the quarter, with a quarter high in April at 4.80%. The quarter low for premium renewal rate change was in June at an average of 4.63%.
- BOP: Quarter premium renewal rate change averaged 4.97%, representing an increase over last quarter’s average of 4.65%. BOP premium renewal rate change finished the quarter at 4.64% in June.
- General Liability: Q2 premium renewal rate change increased from Q1 2020, averaging 3.29% relative to 3.08%. The quarter premium renewal rate change reached its low of 3.23% in May, which is still higher relative to all average premium renewal rate change for General Liability experienced in Q1 2020.
- Commercial Property: Q2 premium renewal rate change increased to 5.29%, reaching a quarter – and year to date – high in April at 5.51%.
- Umbrella: Quarter premium renewal rate change averaged 3.25% versus 3.06% in Q1 2020. Umbrella premium renewal rate change for the quarter reached its high in June at 3.56%.
- Workers’ Compensation: Average premium renewal rate change for the quarter reached -2.41%, down from Q1 2020 average of -1.81%.
“The Q2 IVANS Index results show a continued hardening in the market as premium renewal rates for nearly all major commercial lines of business increase year over year, with the exception of Workers’ Compensation,” said Brian Wood, vice president of Data Products Group. “As the pandemic begins to impact the industry, we will continue to monitor premium renewal rate changes via the IVANS Index, delivering guidance for brokers as they advise customers and for insurers to evaluate which lines of business to invest in.”
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.
The IVANS logos are trademarks of Applied Systems, Inc., registered in the U.S.
About IVANS
IVANS, a division of Applied Systems, is the insurance industry’s exchange connecting insurers, MGAs, agencies, and the insured. IVANS cloud-based software automates the distribution and servicing of insurance products. For more than 35 years, IVANS innovation and expertise has connected 32,000 independent insurance agencies and 430 MGA and insurer partners to enable millions of people to safeguard and protect what matters most in people’s lives.