Commercial auto & liability lead Q2 commercial rate acceleration: Ivans

Commercial insurance rates continued to rise in the second quarter, with annual average quarterly rates of premium growth up both q/q and y/y in four of six reported lines, the Q2 Ivans Index has shown.

Only umbrella policy rates slipped from their Q1 level while accelerating versus the prior year period. The decline in workers compensation rates is easing.

Four of six segments hit their year-to-date highs in May or June.

An even-weighted average of Q2 growth rates would show annual growth of 4.4% across the six covered segments, up from 4.1% in Q1 and 3.5% in the year prior period.

Commercial auto gained the most acceleration among segments in Q1, but showed signs of having peaked already in April at 5.20% before trailing off to record its Q2 average of 5.05%. Rates in New Mexico were called out for steep declines. Quarterly averages:  Q2 2022: 5.05%; Q1 2022: 5.20%; Q2 2021: 4.51%.

With the highest rate of growth in Q2, business owners renewal policy rates have been rising nearly uninterrupted to date in 2022, hitting a peak of 5.83% in June versus 5.28% as recently as March.  Quarterly averages:  Q2 2022: 5.69%; Q1 2022: 5.32%; Q2 2021: 4.59%.

General liability renewal rates have accelerated for most months in 2022, with June's annual rate of 4.78% just off the 4.85% May peak. New Mexico was called out for double digit annual growth rates throughout Q2. Quarterly averages:  Q2 2022: 4.76%; Q1 2022: 4.30%; Q2 2021: 3.95%.

Commercial property rate growth has been somewhat volatile through 2022, but acceleration hit a YTD peak in June at 6.67%. Quarterly averages:  Q2 2022: 6.04%; Q1 2022: 6.16%; Q2 2021: 5.54%.

Umbrella renewal rate growth levels stabilised visibly in Q2 after a turbulent Q1. Monthly readings in Q2 held a rather tight 0.17 percentage point range. Quarterly averages:  Q2 2022: 5.19%; Q1 2022: 5,77%; Q2 2021: 4.41%.

Workers compensation rate growth continues to hold in negative territory, but the pace of annual decline in June was the smallest YTD at -0.43%, well above the freefall noted at the same time last year. The 0.5 percentage point improvement was the second strongest in the six categories. Quarterly averages:  Q2 2022: 00.73%; Q1 2022: -1.23%; Q2 2021: -1.74%.

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