IVANS Index: Q1 2021 Report for Insurers IVANS Index: Q1 2020 Report

2021

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IVANS Index™

The insurance industry’s premium renewal rate index

Q1 2021 REPORT

General Liability

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. 2021 First Quarter Results The first quarter results of 2021 showed premium renewal rate change for all major commercial lines of business increased year over year, except Workers’ Compensation which remained negative. Q1 experienced an increase in average premium renewal rate change across General Liability, Com mercial Property, Umbrella and Workers’ Compensation compared to Q4 2020. Commercial Auto and BOP experienced decreases in average premium renewal rates compared to Q4 2020, which is consistent with the changes seen in Q4 2020.

Commercial Auto

Q1 average premium renewal rate averaged 4.25%, a decrease compared to Q4 2020’s average premium renewal rate of 4.46%. The quarter began with a high of 4.45% and ended with a low of 3.91%.

Business Owner’s Policy

BOP premium renewal rate dropped in Q1 with an average of 4.53% versus 4.57% in Q4 2020. The quarter reached its highest rate in February, averaging 4.59%, and hit its low in January at 4.46%.

General Liability

First quarter premium renewal rate rose compared to Q4 2020, averaging 3.74%. Q1 premium renewal rate experienced its high in February at 3.93 and reached its low in March at 3.61%.

Commercial Property

Average premium renewal rate change for Commercial Property increased quarter over quarter at 5.82% versus 5.62% in Q4 2020. The quarter premium renewal rate change reached its low of 5.63% at the beginning of the quarter in January and experienced its high in February at 6.13%.

Umbrella

Q1 premium renewal rate change averaged 4.24%, rising from 3.46% in Q4 2020. Umbrella premium renewal rate change began the quarter with a high of 4.29% and ended with a quarter low of 4.18%.

Workers’ Compensation

Workers’ Compensation premium renewal rate change averaged -1.37%, up from Q4 2020 at -2.13%. The quarter premium renewal rate change reached its high of -1.02% at the start of the quarter in January and ended the quarter at its low of -1.64%.

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Umbrella

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25%

30%

35%

20%

15%

10%

05%

93.8

78.2

17.9

2021

IVANS Index™

The insurance industry’s premium renewal rate index

Q1 2021 REPORT

commercial auto

Business Owner’s Policy

General Liability

Commercial Property

Umbrella

Workers’ Compensation

Download PDF Report

click and hover to explore

For Insurers For MGA For Agents News About Us

Commercial Auto

Premium renewal rate change for Commercial Auto averaged 4.25% in Q1 2021 with a quarter high in January at 4.45% and the low in March at 3.91%. Q1 average premium renewal rate change dropped from 4.46% in Q4 2020. Utah saw the most variable premium renewal rate change relative to the quarter average, beginning in January with 3.71%, then decreasing to -0.73 in February and then jumping significantly to 16.09% in March. The average premium renewal rate change for Commercial Auto in Q1 2021 was lower compared to Q1 in 2020, which averaged 4.81%. Premium renewal rate change was higher in February and March 2020 relative to 2021, at 5.58% and 4.75% respectively.

4.25 %

Average premium renewal rate change for Commercial Auto insurance in Q1.

4.53 %

Average premium renewal rate change for BOP in Q1.

Business Owner’s Policy (BOP)

Q1 2021 premium renewal rate change for BOP averaged 4.53%, decreasing from 4.57% in Q4 2020. The quarter low was 4.46% in January with a high of 4.59% in February. Utah experienced the most premium renewal rate change variability to the quarter average, at 11.78% in January, 24.48% in February and 16.41% in March. Average premium renewal rate change for BOP was lower in Q1 2021 than Q1 2020 which averaged 4.65%. Premium renewal rate change was lower at the end of the quarter relative to the end of Q1 2020, at 4.54% in March 2021 compared to 4.85% in March 2020.

3.74 %

Average premium renewal rate change for General Liability in Q1.

General Liability

General Liability insurance premium renewal rate change for Q1 2021 averaged 3.74%, increasing from 3.47% in Q4 2020. The quarter high occurred in February at 3.93% and the low was in March at 3.61%. Idaho experienced the most variable premium renewal rate change relative to average, at 2.63 in January, 10.05% in February and 8.27% in March. Compared to Q1 2020, General Liability saw a relatively significant jump, increasing from 3.08% in Q1 2020 to 3.74% in Q1 2021. Premium renewal rate change was higher throughout the entire quarter in Q1 2021 compared to Q1 2020, with the most significant change in February 2020 at 3.04% compared to 3.93% in February 2021.

5.82 %

Average premium renewal rate change for Commercial Property in Q1.

Commercial Property

Q1 2021 premium renewal rate change for Commercial Property averaged 5.82%. The quarter high was 6.13% in February and the low was 5.63 in January. The average premium renewal rate for the quarter saw a slight increase from 5.62% in Q4 2020. Iowa experienced consistently higher average premium renewal rate change relative to the quarter, at 10.74% in January, 10.68% in February, and 10.92% in March 2021. Average premium renewal rate change for Commercial Property was higher in Q1 2021 than Q1 2020, which averaged 5.14%. Premium renewal rate change average was higher at the end of the quarter relative to the end of Q1 2020, at 5.69% in March 2021 versus 5.28% in March 2020.

4.24 %

Average premium renewal rate change for Umbrella in Q1.

Umbrella

Umbrella premium renewal rate change averaged 4.24% in Q1 2021. The quarter high was 4.29% in January, with a low of 4.18% in March. Q1 average premium renewal rate change increased from 3.46% in Q4 2020. Utah experienced the greatest premium renewal rate change variability relative to the average, beginning the quarter at 2.46% in January, then dipping to -3.01% in February and then skyrocketing to 16.67% in March. Q1 2021 average premium renewal rate change for Umbrella was higher compared to Q1 2020, which averaged 3.06%. Premium renewal rate change was also higher at the end of the quarter relative to the end of Q1 2020, at 4.18% in March 2021 versus 3.22% in March 2020.

-1.37%

Average premium renewal rate change for Workers’ Compensation in Q1.

Workers’ Compensation

Q1 2021 premium renewal rate change for Workers’ Compensation averaged -1.37%. The quarter high was -1.02% in January and the low was -1.64% in March. Q1 average premium renewal rate change increased from Q4 2020, which was -2.13%. Alabama saw significantly higher premium renewal rate change relative to the quarter average, at -2.26% in January, 6.06% in February and 13.31% in March. Workers’ Compensation average premium renewal rate change was higher in Q1 2021 compared to Q1 2020, which averaged -1.81%. Premium renewal rate change was also higher at the end of Q1 2021, at -1.64% in March 2021 versus -1.96% in March 2020.

About IVANS Index

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 base change or claims experience. Policies with anomaly exposure changes or claims experience are removed.

About IVANS

IVANS is the property and casualty insurance industry’s exchange connecting insurers, MGAs, agencies and insureds. IVANS cloud-based software automates the distribution and servicing of insurance products. For more than 35 years, IVANS innovation and expertise have connected more than 33,000 independent insurance agencies and 430 insurer and MGA partners to enable millions of people to safeguard and protect what matters most in people’s lives.

25%

30%

35%

20%

15%

10%

05%

93.8

78.2

17.9

2019

IVANS Index™

The insurance industry’s premium renewal rate index

YEAR-END REPORT

commercial auto

Business Owner’s Policy

General Liability

Commercial Property

Umbrella

Workers’ Compensation

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For Insurers For MGA For Agents News About Us