February 27, 2024
Average premium renewal rate change for all major commercial lines of business except for workers’ compensation was up year over year, according the Q4 and Year-End 2023 Ivans Index report. Compared to Q3 2023, Q4 2023 saw “an increase in average premium renewal rate change across all major commercial lines,” with “BOP, general liability, commercial property, and umbrella [ending] the year with their highest average premium renewal rate change.”
The average premium renewal rate change was higher for all lines of business compared to 2022, according to the report, and commercial property “average premium renewal rate change was consistently higher compared to all other lines of business in 2023.”
The Findings
For commercial auto, the “Q4 2023 average premium renewal rate averaged 8.79%, an increase compared to Q3 2023’s average premium renewal rate of 7.01%;” BOP’s premium renewal rate increased 9.12% in Q4 as opposed to 7.74% in Q3; general liability experienced a 5.83% increase in Q4 versus 5.43% in Q3; commercial property experienced an increase of 10.34% versus 10.08%; umbrella saw an increase of 6.39% versus 5.29%; and workers’ compensation experienced a reduced reduction, from -0.99% to -0.64% in Q4.