US commercial P&C renewal rates slow in Sept, temper Q3 rise
US commercial P&C insurance renewal rates slowed in five of six sub-segments in September to take the edge off of Q3 gains, with only commercial auto continuing its acceleration, according to the latest reading of the Ivans Index.
Commercial auto rate growth rose to a 7.4% annual pace and has accelerated more than any other line in Q3.
Renewal rates are still growing fastest in commercial property, up 9.9% year on year, despite a notable 0.6 points slowdown from the prior month reading to levels fractionally below the 3M running average. 12M acceleration remains higher than for any other category.
The second most notable monthly deceleration after property came in umbrella policy renewals, volatile for most of Q2-Q3. Renewal rates fell 0.6 points to a 5.2% rate of annual growth.
Workers compensation rates have come down at an ever increasing pace during Q3, now down 1.4% year on year in September, but still within the range of rate decline established to date in 2023.
Elsewhere renewal rate growth has held to tighter established ranges.
Business owners policy renewal rates grew 7.6% in September, well within the YTD range, albeit on a slightly upward trend. Quarterly average rate growth has added 0.1 to 0.4per quarter throughout the year.
Renewal rates in general liability, at 5.4% in September, are within a fraction of the 12M running average.
A simple average of all six categories shows rate growth slowing to a 5.7% pace from 6.0% in August. The Q3 average rate growth across the six lines of 5.8% is nonetheless 0.3 points above the 5.5% rate of average growth in Q2.
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