Premium Renewal Rates Increase Across Major Commercial Lines Except Workers’ Compensation

In the latest Q2 2024 Ivans Index report, the insurance industry saw a rise in premium renewal rates across nearly all major commercial lines of business, with Workers’ Compensation being the notable exception. The data, gathered from over 120 million transactions, highlights trends and changes in premium renewal rates, providing valuable insights for agencies and insurers.

Commercial Auto experienced a slight uptick with an average premium renewal rate of 9.28%, up from 9.09% in Q1 2024. Business Owner’s Policy (BOP) also saw a modest increase to 9.49%, compared to 9.30% in the previous quarter. General Liability was one of the few lines to see a decrease, dropping to 4.86% from 5.89%.

Commercial Property rates rose to an average of 10.86% from 10.52% in Q1. Umbrella insurance showed the most significant increase, jumping to 9.62% from 6.81%. Conversely, Workers’ Compensation continued its downward trend, averaging -1.28%, a further drop from -0.88% in Q1.

Kathy Hrach, senior vice president of Product Management at Ivans, noted the persistence of hard market conditions and emphasized the impact of macroeconomic trends, severe weather events, and political shifts on the insurance market. Ivans Index, released monthly, offers a comprehensive look at premium rate changes, supporting informed decision-making for industry professionals.