US commercial P&C renewal rates accelerate in August, hit cycle high
US commercial P&C insurance renewal rates accelerated across all lines in August save for ever-declining workers' compensation, even breaking the 10% growth mark in commercial property, according to the latest reading of the Ivans Index.
A straight average of Ivan's six component lines shows composite renewal rates rising at a 6% annual pace in August, up 0.3 points from the prior two months and a record high for the current cycle.
Commercial property renewal rates in the US rose at a 10.56% annual pace, a new record high in the cycle after a slight easing late Q2.
Business owners policy rates show the next fastest growth rate at 7.84% in August. But the run-up in rate inflation has shown signs of topping off, running nearly flat in August and holding the slimmest gain to the near-term running averages amongst leading segments.
Commercial auto returned to headier rate acceleration in August, with renewal rates up 7.01% versus the prior year period, also a record fast pace during the current cycle. Acceleration returned after two months of more stable readings near 6.5-6.6%.
Elsewhere renewal rate growth rates are within the longer-term ranges. Renewal rates on umbrella policies, at 5.76% in August and volatile of late, recouped most of the prior-month slowdown. General liability renewal rates have risen at a pace near the top of their range for three of the past five months, but August's 5.61% gain still makes it the slowest commercial segment amongst risers.
Workers compensation remains the disinflationary outlier, ceaselessly eroding throughout the cycle. Mark renewal rates in the segment down 1.07% year on year, putting paid to two hopeful months of slightly more stable pricing.
The Ivans Index, published monthly, measures the year over year rate change for single consistent policies based on data from more than 34,000 agencies and 450 insurers and MGAs across the US insurance market.
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