IVANS Index: 2020 Year-End Report for Agents IVANS Index: 2020 Year-End Report

2020

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17.9

IVANS Index™

The insurance industry’s premium renewal rate index

YEAR-END 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. 2020 Year-End Results Q4 results showed an increase in the premium renewal rate change average across General Liability, Commercial Property, Umbrella and Workers’ Compensation compared to Q3; however, Workers’ Compensation average premium renewal rate change remained in negative territory, which was consistently negative throughout all of 2020. Notably, Commercial Property and Umbrella ended the year with their highest average premium renewal rate change. 2020 average premium renewal rate change was variable for all lines of business compared to 2019. Commercial Property premium renewal rate change averaged consistently higher compared to all other lines of business in 2020.

Commercial Auto

Premium renewal rate change averaged 4.46% for the quarter and ended the year at 5.03% in December, which was also the quarter high. The quarter low was in November at 3.93%.

Business Owner’s Policy

Fourth quarter premium renewal rate change averaged 4.57%, representing a decrease over last quarter’s average of 4.76%. BOP premium renewal rate change finished the quarter at 4.64% in December.

General Liability

Q4 premium renewal rate change increased from Q3, averaging 3.47% relative to 3.44%. The quarter premium renewal rate change reached its low of 3.38% at the start of the quarter in October and ended the year in December with the quarter high of 3.59%.

Commercial Property

Q4 premium renewal rate change rose again quarter over quarter, with an average rate change of 5.62% as compared to 5.30% in Q3. Commercial Property premium renewal rate change reached its high for 2020 in December at 5.68%.

Umbrella

Q4 premium renewal rate change averaged 3.46% versus 3.09% in Q3. Umbrella premium renewal rate change reached its quarter low in November at 2.82% and its high in December at 3.79%.

Workers’ Compensation

Average premium renewal rate change for the quarter reached -2.13%, up from the Q3 average of -2.41%. Workers’ Compensation ended the year in December at its quarter high at -1.70%.

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About IVANS Index

25%

30%

35%

20%

15%

10%

05%

93.8

78.2

17.9

2020

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

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 insurance averaged 4.46% in Q4. The quarter high was 5.03% in December, with a low of 3.93% in November. The year high and low premium renewal rate change were 5.58% and 3.20% in February and August, respectively. 2020 average premium renewal rate change for Commercial Auto experienced a general uptick compared to 2019 throughout the year, with most months experiencing higher average premium renewal change relative to change in 2019. Q2 2020 experienced the greatest increase of average premium renewal rate change compared to 2019 at 4.80% in April (versus 4.33% April 2019), 4.74% in May (versus 4.28% in May 2019) and 4.63% in June (versus 4.39% in June 2019).

4.46 %

Average premium renewal rate change for Commercial Auto insurance in Q4.

4.57 %

Average premium renewal rate change for BOP in Q4.

Business Owner’s Policy (BOP)

Q4 premium renewal rate change for BOP averaged 4.57%. The quarter high was 4.68% in November, with a low of 4.39% in October. Q4 premium renewal rate change decreased to 4.57% from 4.76% in Q3. The year high and low premium renewal rate change occurred in April and July at 5.22% and 4.38% respectively. Relative to other lines of business, BOP’s average premium renewal rate experienced the second highest change across all months, behind Commercial Property. Average premium renewal rate change for BOP remained consistently higher in 2020 versus 2019, except for October and December.

3.47 %

Average premium renewal rate change for General Liability in Q4.

General Liability

General Liability insurance premium renewal rate change for Q4 averaged 3.47% versus 3.44% in Q3. General Liability average premium renewal rate change was lowest in Q1 2020, reaching 3.02% in January. The year high premium renewal rate change occurred in August at 3.61%. Average premium renewal rate change for General Liability experienced an increase in 2020 throughout the year compared to 2019. Q4 2020 experienced the greatest increase of average premium renewal rate change compared to 2019 at 3.38% in October (versus 2.49% Oct. 2019), 3.43% in November (versus 2.53% in Nov. 2019) and 3.59% in December (versus 2.78% in Dec. 2019).

5.62 %

Average premium renewal rate change for Commercial Property in Q4.

Commercial Property

In Q4, Commercial Property insurance premium renewal rate change averaged 5.62% versus 5.30% in Q3, with a six-month average of 5.46%. The fourth quarter’s average premium renewal rate change for Commercial Property was the highest of the lines in 2020, holding consistent with the same trend in 2019. 2020 average premium renewal rate change for Commercial Property was higher compared to 2019 across all months. The 2020 year high for premium renewal rate change was in December at 5.68% and the low was in January at 4.86%.

3.46 %

Average premium renewal rate change for Umbrella in Q4.

Umbrella

Umbrella premium renewal rate change averaged 3.46% in Q4 versus 3.09% in Q3, with a sixmonth average of 3.28%. Premium renewal rate change reached a quarterly high at 3.79% in December and low at 2.82% in November. 2020 average premium renewal rate change for Umbrella was higher compared to 2019, except for February. The year low and high premium renewal rate change occurred in September and December at 2.78% and 3.79% respectively.

-2.13%

Average premium renewal rate change for Workers’ Compensation in Q4.

Workers’ Compensation

Workers’ Compensation premium renewal rate change averaged -2.13% in Q4 versus -2.41% in Q3. January marks the highest premium renewal rate change of the year at -1.63%, and October the lowest at -2.78%. 2020 average premium renewal rate change for Workers’ Compensation was consistently more positive compared to 2019, except for January and August. Workers’ Compensation average premium renewal rate change did not rise above zero once in 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 32,000 independent insurance agencies and 400 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

click to explore

For Insurers For MGA For Agents News About Us

About IVANS Index