Milwaukee, WI., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Ivans® today announced the results for Q4 and year-end 2023 Ivans Index™, the insurance industry’s premium renewal rate index. The fourth quarter results of 2023 showed premium renewal rate change for all major commercial lines of business, except Workers’ Compensation, are up year over year. Q4 2023 experienced an increase in average premium renewal rate change across all major commercial lines compared to Q3 2023.
Premium renewal rate change by line of business for Q4 2023 highlights include:
- Commercial Auto: Q4 2023 average premium renewal rate averaged 8.79%, an increase compared to Q3 2023’s average premium renewal rate of 7.01%. The quarter began with the lowest rate change in October, averaging 8.52%, and reached its highest rate in November, averaging 9.19%.
- BOP: BOP premium renewal rate increased in Q4 2023 with an average of 9.12% versus 7.74% in Q3 2023. The quarter began with the lowest rate change in October, averaging 8.77%, and ended with its highest rate in December, averaging 9.72%.
- General Liability: Fourth quarter 2023 premium renewal rate experienced an increase compared to Q3 2023, averaging 5.83% versus 5.43%. Q4 2023 premium renewal rate experienced its low in November at 5.65% and ended with its highest rate in December at 6.16%.
- Commercial Property: Average premium renewal rate change for Commercial Property experienced an increase during Q4 2023 at 10.34% versus 10.08% in Q3 2023. The quarter experienced its lowest rate change in November, averaging 9.93%, and reached its highest rate in December, averaging 10.67%.
- Umbrella: Average premium renewal rate change for Umbrella experienced an increase during Q4 2023 at 6.39% versus 5.29% in Q3 2023. The quarter began with the lowest rate change in October, averaging 6.22%, and ended with its highest rate in December, averaging 6.62%.
- Workers’ Compensation: Workers’ Compensation premium renewal rate change averaged -0.64%, up from Q3 2023 at -0.99%. The fourth quarter began with the lowest rate change in October, averaging -1.26%, and reached its highest rate in November when it rose above zero for the first time in 2023, averaging 0.15%.
Notably, BOP, General Liability, Commercial Property and Umbrella ended the year with their highest average premium renewal rate change. 2023 average premium renewal rate change was higher for all lines of business compared to 2022. Commercial Property average premium renewal rate change was consistently higher compared to all other lines of business in 2023.
“Premium renewal rate changes continued to increase across all major commercial lines products in Q4, with many reaching year-end highs throughout the quarter. In addition, Workers’ Compensation reached its highest rate, rising above zero, in November,” said Brad Boyer, chief product officer, Ivans. “As we begin 2024, we’ll be watching the data to see how the hard market trends of 2023 carry into this year and understand the macroeconomic factors impact on renewals and where markets are investing to create the greatest return.”
Released monthly, Ivans Index is a data-driven report of current conditions and trends for premium rate renewal 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. Inclusive of more than 38,000 agencies and 650 insurers and MGAs, the Ivans Index is reflective of the premium rate change trends being experienced by all agencies and insurers across the U.S. insurance market.
Download the complete Q4 Ivans Index report.
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About Ivans
Ivans is where insurance carriers, agents, and MGAs come together to grow their businesses. Every day, our 38,000 agents and over 650 carrier and MGA 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.
