UNIVERSITY PARK, Ill., July 21, 2022 (GLOBE NEWSWIRE) — Ivans® today announced the results for Q2 2022 Ivans Index™, the insurance industry’s premium renewal rate index. The second quarter results of 2022 showed premium renewal rate change for all major commercial lines of business increased year over year, except Workers’ Compensation which remained negative. Q2 experienced an increase in average premium renewal rate change across Commercial Auto, Business Owner’s Policy (BOP), General Liability, Commercial Property, and Workers’ Compensation compared to Q1 2022, while Umbrella experienced a decrease.
Premium renewal rate change by line of business for Q2 2022 highlights include:
- Commercial Auto: Q2 average premium renewal rate change averaged 5.05%, an increase compared to Q1 2022’s average premium renewal rate change of 4.22%. The quarter began with its highest rate change in April, averaging 5.2% and ended with its lowest of 4.92% in June.
- BOP: BOP premium renewal rate change increased in Q2 with an average of 5.69% versus 5.32% in Q1 2022. The quarter premium renewal rate change experienced its low of 5.56% in April and ended the quarter at its high of 5.83%.
- General Liability: Second quarter premium renewal rate change experienced an increase compared to Q1 2022, averaging 4.76% versus 4.3%. Q2 premium renewal rate experienced its low in April at 4.64% and reached its high in May at 4.85%.
- Commercial Property: Average premium renewal rate change for Commercial Property increased quarter over quarter at 6.4% versus 6.16% in Q1 2022. The quarter premium renewal rate change reached its low of 6.05% in April and experienced its high in June at 6.67%.
- Umbrella: Q2 premium renewal rate change averaged 5.19%, dropping from 5.77% in Q1 2022. Umbrella premium renewal rate change experienced its low of 5.12% in May and reached its quarter high of 5.29% in June.
- Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -0.73%, up from Q1 2022 at -1.23%. The quarter premium renewal rate change experienced its low of -0.91% in April and ended the quarter at its high of -0.43%.
“This quarter’s Ivans Index continues to show average premium renewal rate changes tracking alongside other hard market macroeconomic trends,” said Kathy Hrach, vice president of Product Management, Ivans. “The Index continues to serve as a valuable asset for agencies and carriers to inform pricing and renewal decisions, and a guidepost on the health of the independent agent channel to the broader industry.”
Ivans Index is a data-driven report of current conditions and trends for premium renewal rate 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.
To derive the change in cost, Ivans uses policies that have the same insured, insurer, product type, policy number, expiration date, effective date and producing agency. For example, if an insured paid $1,000 for a policy last year and $1,023 this year, Ivans Index would state that as a premium renewal rate change of 2.3%. Ivans Index does not use exposure-based change or claims experience. Policies with abnormal exposure changes or claims experience are removed.
Download the complete Q2 2022 Ivans Index report here.
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Ivans is where insurance carriers, agents, and MGAs come together to grow their businesses. Every day, our 34,000 agents and 450 carrier partners plug into technology that empowers them to better determine appetite and eligibility, swiftly produce quotes, get accurate claims and commission updates, automatically communicate policy data, and connect to one another to drive new business. With easier ways to get the day’s work done, insurance professionals can open the door to more revenue without letting complexity in behind it.