Most lines of commercial insurance experienced increases in premium renewal rates in the fourth quarter, according to a report Friday from Ivans Insurance Services, a division of Tampa, Florida-based Applied Systems Inc.
Most lines, including business owners policy, general liability, commercial property and umbrella, ended the year with their highest average premium renewal rates, Ivans said in its report.
Commercial property insurance premium renewal rates rose an average 5.95% in the fourth quarter, compared with 5.77% in the third quarter and with a six-month average of 5.86%. The quarter’s high was 6.14% in December, with a low of 5.77% in November.
Business owners policy renewal rates climbed an average 5.58% in the fourth quarter, compared with 5.05% in the third quarter and with a six-month average of 5.32%. The quarter’s high was 5.77% in December, with a low of 5.24% in October.
Umbrella renewal rates increased 5.13% in the fourth quarter, compared with 4.85% in the third quarter and with a six-month average of 4.99%. The quarter’s high was 5.40% in December, and the low was 4.97% in November.
Commercial auto premium renewal rates rose 4.69% in the fourth quarter, compared with 4.32% in the third quarter and with a six-month average of 4.51%. The quarter’s high was 4.89% in November, and the low was 4.55% in December.
General liability insurance premium renewal rates increased an average 4.41% in the fourth quarter, compared with 4.21% in the third quarter and with a six-month average of 4.31%. The quarter’s high was 4.78% in December, and the low was 4.18% in October.
Workers compensation renewal rates declined 1.16% in the fourth quarter compared with a decline of 1.40% in the third quarter and with a six-month average decline of 1.28%. The quarter’s high was a 1.70% decline in December, and the low a 2.78 % decline in October.
“Most major commercial lines of business ended the year with their highest average premium renewal rates since the Ivans Index began in 2017,” Kathy Hrach, vice president of product management for Ivans Insurance, said in a statement with the report. She added that premium renewal rate changes could be influenced by macroeconomic trends such as inflation and economic uncertainty.
Ivans tracks more than 120 million data transactions and includes more than 32,000 agencies and 400 insurers and managing general agents in its monthly analysis.
Best Careers For The Future To Focus On Today