Wrapping Up 2021 — Renewal Rates

IVANS Insurance Solutions says no one is surprised that commercial lines renewal rates ended on the positive side at the end of 2021’s fourth quarter. The same can be said for the entire year of 2021.

The only commercial line in negative territory is workers’ compensation.

Here are the details:

Commercial auto: The 4th quarter ended with a renewal rate change of 4.69%. The year ended with a positive 4.55%.

Business owners’ policy: BOP renewal rates averaged 5.58% in the fourth quarter and sat at a positive 5.77% for the year end.

General liability: The fourth quarter was up 4.41% over the third quarter and ended the year up 4.28%.

Commercial property: The fourth quarter saw a 5.95% renewal rate change over the third quarter and the average renewal rate for the year was 6.14%.

Umbrella: The fourth quarter was up over the third by 5.13% and the year ended at 5.4%.

Workers’ compensation: Average premium renewal rates dropped 1.16%.

IVANS spokeswoman, Kath Hrach — the company’s vice president of product management — said 2021 was a very good year. “Most major commercial lines of insurance ended the year with their highest average premium renewal rate since the IVANS Index began in 2017,” she said. “As the average premium renewal rate changes become influenced by macroeconomic trends like inflation and economic uncertainty, we will continue to track how these commercial lines of business fare in 2022.”

Source link: Insurance Business America — https://bit.ly/3giKXiq