US commercial P&C renewal rates ease back in May from April surge: Ivans
US commercial P&C insurance renewal rates eased back in May from robust prior month gains, including a notable easing of pressure in general liability and umbrella, but left rates for commercial property and auto well ahead of running averages.
Five of six measured lines saw a reduced rate of pricing growth in May versus April levels. Half were recorded below their three-month running average.
Commercial property renewal rates in the US rose 9.9% in May, down a fractional 0.2 points from the prior month peak and still the second highest reading in the current cycle. May brought the first easing of the headline annual rate in seven months; both downward moves came as mere corrections of outsized prior month gains.
Commercial auto rates posted the only increase from the prior month annual reading, now to 6.8%, the highest reading in the current cycle.
But umbrella policies and general liability showed a notable easing in renewal rate pressures, sufficient to put each at mid-term lows for renewal rate growth tempo. The nearly 4.6% annual growth rate in renewal pricing for general liability is a low dating back to April 2022; the nearly 4.4% rate in umbrella in May 2021.
The Ivans Index, published monthly, measures the year over year for a single consistent policy based on data from more than 34,000 agencies and 450 insurers and MGAs across the U.S. insurance market.
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