Second-quarter 2021 renewal rate changes for most major commercial lines of business increased year over year, save for workers compensation, according to a report Wednesday from Ivans Insurance Services, a division of Tampa, Florida-based Applied Systems Inc.
When compared sequentially with results from first-quarter 2021, second-quarter renewal rate changes increased for commercial auto, business owner’s policy, general liability and umbrella lines, while commercial property and workers compensation saw decreases.
In commercial property lines, the average premium renewal rate change was 5.54{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} compared with 5.82{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in the first quarter and 5.29{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in second-quarter 2020. The quarter premium renewal rate change reached its low of 5.43{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in May and its high of 5.68{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} at the end of the quarter.
For commercial auto, second-quarter average premium renewal rate change averaged 4.51{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}, up from 4.25{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in the first quarter but down from 4.72{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in second-quarter 2020. The quarter began with a high of 4.65{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} and ended with a low of 4.28{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}.
In general liability lines, second-quarter premium renewal rate changes averaged 3.95{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}, up from 3.74{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in the first quarter and 3.29{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in second-quarter 2020. The premium renewal rate changes were lowest in May at 3.79{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} and highest in June at 4.07{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}.
For business owner’s policy, the second-quarter renewal rate increase averaged 4.59{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}, up slightly from 4.53{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in the first quarter but down from 4.97{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in second-quarter 2020. The lowest rate change of 4.48{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} was in May and the highest of 4.66{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} at the end of the quarter.
In umbrella lines, the second-quarter premium renewal rate change averaged 4.40{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}, up from 4.24{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in the first quarter and 3.25{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in second-quarter 2020. Umbrella lines’ premium renewal rate change began the quarter with a low of 4.29{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} and ended with a quarter high of 4.60{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}.
In workers compensation, the premium renewal rate change was down an average of 1.74{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}, compared with down 1.38{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in the first quarter and down 2.41{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4} in second-quarter 2020. The average premium renewal rate change was highest in May, down 1.52{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}, and lowest at the end of the quarter, down 2.06{0018ee5a413206d5867d4650a6cb0bf5e2f9c77ab1c1dc5336e75263ef8a33b4}.
Ivans says it tracks more than 120 million data transactions in its pricing analysis.
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