Tague Alliance Update – Commercial Rates Mostly Higher In April
Hello Tague Alliance Friends,
The article below stated that most lines of commercial are trending marginally upward, with the notable exception of Work Comp. This is going to put pressure on our group and the industry to grow topline premium and revenue in the Comp line. Retention is ever more important, so make sure you are working with your clients and carriers to keep the business on your books.
Most Commercial Lines Premiums Trended Upward in April: IVANS
Last month, major commercial lines insurance renewal premiums continued trending upward, with one exception: Workers Compensation. The line remains in negative territory for the year, according to the latest IVANS Index.
Month over month, April’s increases were down from previous periods for most of commercial lines, except commercial auto and umbrella which saw an uptick in increases.
According to the IVANS Index, premium renewal rate change by line of business for April 2018 highlights include:
- Commercial Auto: 4.54 percent, up from 3.87 percent at the end of April. April marks the highest premium renewal rate change in 2018 for Commercial Auto.
- BOP: 3.86 percent, down from 4.29 percent the month prior.
- General Liability: 2.16 percent, down from 2.24 percent at the end of April.
- Commercial Property: 2.98 percent, down from 3.04 percent the month prior.
- Umbrella: 2.31 percent, up from 2.13 percent at the end of April. April marks the highest premium renewal rate change in 2018 for Umbrella.
- Workers Compensation: -2.93 percent, down from -2.79 percent the month prior.
Brian Wood, vice president of IVANS Markets, said the index “further reiterates the hardening insurance market as insurance premiums rise and insurers are evaluating which lines of business to actively compete in.”
The monthly IVANS Index tracks premium rate renewal changes for the most placed commercial lines of business by analyzing 120 million data transactions from 30,000 agencies and 380 insurers and MGAs.