All major commercial industries saw positive changes in premium renewal for the first quarter of 2022, excluding labor compensation, according to a report on Thursday from Ivan’s Insurance Services, a division of Tampa, Florida-based Applied Systems Inc.
Commercial real estate and umbrella coverage saw an increase in the average premium renewal changes compared to the fourth quarter of 2021, while commercial cars, business owners’ policies, general liability and compensation saw declining changes in the average premium renewal compared to the fourth quarter 2021.
For commercial vehicles, the average premium renewal change for the first quarter averaged 4.22%, a decrease compared to the fourth quarter of 2021’s average premium renewal change of 4.69%. The quarter reached its lowest rate in February, averaging 4.06% and ended with its highest level of 4.47% in March.
The change in premium renewal for business owners averaged 5.32% in the first quarter compared with 5.58% in the fourth quarter of 2021. In January and March, the premium renewal changed by 5.28% and in February it reached 5.41%.
The change in the premium renewal rate for general liability for the first quarter averaged 4.3%, a decrease from 4.41% during the fourth quarter of 2021. The rate of change for renewal was the lowest in February at 4.11% and reached its highest level in March of 4.56%.
Commercial real estate saw an average change in premium renewal during the first quarter of 6.16%, up from 5.95% in the fourth quarter of 2021. The change in premium renewal reached its lowest level of 6.01% in February and the highest in March at 6.29 %.
The change in premium renewal during the first quarter averaged 5.77% for umbrella coverage, up from 5.13% during the fourth quarter of 2021. The change in umbrella premium renewal reached its lowest level of 4.68% in February and reached its highest quarterly level of 7.04 % in March.
The change in the renewal of the compensation premium decreased on average by 1.23%, a decrease from the fourth quarter of 2021 to -1.16%. The quarterly change in premium renewal reached its highest level of -0.95% in February and ended the quarter at its lowest level of -1.48%.
“We see that our data is in line with macroeconomic trends, such as inflation, as the average premium renewal continues to rise,” said Kathy Hrach, Vice President of Product Management at Ivans.