Commercial Lines Premiums Increase in Q1, Workers’ Comp the Exception

Premium renewal rates for most major commercial lines of business continued to rise in the first quarter of 2024 compared with Q4 2023, with the exception of workers’ compensation, according to the Q1 2024 Ivans Index report.

The report, which analyzes more than 120 million data transactions, also shows an overall trend of premium renewal rates increasing for all lines compared to the first quarter of 2023.

“This quarter’s Ivans Index results show that the premium renewal rates continue to increase across all major commercial lines, signaling continued hard market conditions,” said Kathy Hrach, senior vice president of product management for Ivans. She emphasized the importance of tracking rate trends for renewals and remarketing in the current market environment.

Commercial auto experienced an average premium renewal rate of 9.09% in Q1 2024, up from 8.79% in the previous quarter. The lowest rate was observed in January at 7.04%, while the highest rate occurred in February at 10.30%. A year earlier, the average premium renewal rate change was 5.85%.

Business owner’s policy (BOP) also saw an increase, with an average premium renewal rate of 9.30% in Q1 2024 compared to 9.12% in Q4 2023. The highest rate was recorded in February at 9.72%, and the lowest in March at 8.84%. The average rate increase in Q1 2023 was 7.12%.

General liability premium renewal rates experienced a slight increase, averaging 5.89% in Q1 2024 versus 5.83% in the previous quarter. January saw the lowest rate at 5.38%, while February had the highest at 6.21%. In 2023’s first quarter, the average increase was 5.23%.

Commercial property rates also increased, with an average premium renewal rate of 10.52% in Q1 2024 compared to 10.34% in Q4 2023. The lowest rate was in January at 10.30%, and the highest in February at 10.77%. The year earlier period saw an average rate increase of 8.89%.

Umbrella coverage followed suit, with an average premium renewal rate of 6.81% in Q1 2024, up from 6.39% in the previous quarter. The lowest rate was in January at 6.35%, and the highest in March at 7.10%. The Q1 2023 average rate increase was 5.08%.

Workers’ compensation was the only line of business that experienced a decrease compared to the previous quarter, with an average premium renewal rate of -0.88% in Q1 2024, lower than -0.64% in Q4 2023. The highest rate was in February at -0.40%, and the lowest in March at -1.57%. The first quarter of 2023 saw an average rate decrease of -1.36%.

The Ivans Index, released monthly, is based on data from more than 38,000 agencies and 600 insurers and MGAs and indicates current conditions and trends in the commercial insurance industry.

For more information, visit Ivans website. &