US commercial P&C renewal rates rebound; auto surges

US commercial P&C insurance renewal rate growth rebounded across all major lines in February, putting average growth rates at a long-term high of 7.3%, up a full percentage point from January, the latest reading of the Ivans Index indicated.

Commercial auto renewal rate growth rose 2.9 points to more than cover two months of slippage and hit double digits at 10.3%, a long-term high.  

That heady acceleration for auto has yet to put it on a par with long-term market leader, commercial property, which accelerated by half a percentage point to 10.8% annual growth, its third consecutive double digit reading.

General liability showed the second largest jump in February to 6.2%, but the gain mostly just erased a prior month easing and leaves the growth rate only marginally above its mid-term range. 

Renewal rates for umbrella policies rose 7.0%, 0.6 points above the January reading, the fifth month of above-trend growth to a new mid-term high. 

Business owners policies saw renewal rate growth of 9.7%, their second month of relative stability after a steep acceleration in Q4 2023. 

Workers compensation continues to soften. Renewal rates are down 0.4% year on year, a fractional reduction in the softening suffered over recent years. 

A simple average of all six commercial lines shows the annual rate growth accelerating by a full percentage point from the January reading to 7.3%, a long-term high more than sufficient to offset a prior month easing. Counting out the outlier of workers comp, average renewal rate growth also rose by a full point to 8.8%. 

Ivans releases its commercial insurance pricing index of premium rate renewal changes on a monthly basis. The Ivans Index measures the premium difference year over year for a single consistent policy based on data of more than 38,000 agencies and 600 insurers and MGAs. 

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