Ivans, a division of Applied Systems, has released its Q4 2024 and year-end results for the Ivans Index, showing year-over-year premium renewal rate increases across all major commercial lines of business, except Workers’ Compensation.
Compared to Q3 2024, Commercial Auto, Business Owner’s Policy (BOP), and Umbrella saw higher average premium renewal rates in Q4, while General Liability, Commercial Property, and Workers’ Compensation experienced decreases.
Looking at Commercial Auto, the average premium renewal rate was 9.82% in Q4 2024, up from 9.71% in Q3. The quarter began with the lowest rate change in October at 9.62%, and ended with its highest rate of the quarter at 9.99%.
BOP renewal rate change averaged 9.09% this quarter, up from 8.68% in Q3 2024. The quarter’s lowest rate was 8.72% in October, ending at a high of 9.59% in December.
General Liability rates averaged 3.98% in Q4 2024, down from 4.28% in Q3 2024. Rates were steady in October and November at 3.89%, increasing to 4.16% in December.
Commercial Property rates decreased quarter-over-quarter, averaging 11.11% in Q4 2024 compared to 11.69% in Q3 2024. The highest rates were in October at 11.24%, while November saw the lowest at 10.98%.
Umbrella rates increased slightly, averaging 8.76% in Q4 2024 compared to 8.56% in Q3 2024. The quarter began with the lowest rate in October at 8.49%, and ended with its highest rate in December at 9.09%.
Lastly, Workers’ Compensation premium renewal rates averaged -1.47% in Q4 2024, a decrease from -1.28% the previous quarter. October’s rate was the highest at -1.43%, with the lowest at -1.52% in November.
Notably, Commercial Auto ended the year with its highest average premium renewal rate change.
Overall, 2024 average renewal rate changes were higher for most lines compared to 2023, with only General Liability and Workers’ Compensation showing slightly lower average rate changes.
Commercial Property maintained its position as the line with the highest average rate change throughout 2024.
Kathy Hrach, EVP of product management at Ivans, said, “Premium renewal rates were variable throughout the fourth quarter, but remained elevated compared to 2023, signaling that hard market conditions may become the new normal for our industry.
“With an active catastrophic season in the fourth quarter of 2024 and a new administration entering the office in the first quarter of 2025, we will continue to look to the Ivans Index as a guidepost on the health of the commercial market.”
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