The last thing a business owner or CFO wants to hear is that their commercial insurance rate is increasing at the time of renewal. Over that past 20 years, the insurance markets have been soft, however, due to the current state of affairs and impact of COVID-19, the insurance industry is shifting into a hardening market.
The trend can be seen when reviewing the August results of the IVANS Index™ which tracks premium renewal rates. Here are the changes versus the month prior:
- Business Owners Policy: 5.00%, up from 4.38%
- General Liability: 3.61%, up from 3.45%
- Commercial Property: 5.48%, up from 5.42%
- Umbrella: 3.27%, up from 3.23%
- Workers’ Compensation: -2.51%, up from -2.66%
- Commercial Auto: 3.20%, down from 5.01%
“The slight increases in premium renewal rates across nearly all major commercial lines of business are a response to changing market dynamics,” according to Brian Wood, Vice President of Data Products Group, IVANS Insurance Services. “As the pandemic changes the way the world does business, we will continually watch the numbers closely to see how changing market dynamics will impact the health of the industry.”
As the pandemic progresses, we will need to continue to watch this hardening of the market across all lines of business. Although Commercial Auto has downshifted as compared to earlier months in the year, it will be a line of business to watch closely. The impact of COVID-19 is being felt by businesses in many ways and increasing insurance costs is just one of the challenges. This is why it’s important to work with a partner aimed at helping you manage the risk facing your business while controlling cost. This is especially vital as we navigate these challenging times.
The team at Univest Insurance is committed to helping our existing and new clients traverse the impacts of COVID-19. We don’t just sell based on the price of Insurance; we make sure we are putting the needs of our clients first by customizing insurance programs aimed at meeting the unique needs of each business while creating excellence in our trusted partnerships. To have a conversation about how we can help your business control its risk, contact us today at 800-220-3077 or firstname.lastname@example.org.
Insurance products offered through Univest Insurance, LLC, a licensed insurance agency affiliate of Univest Financial Corporation, are obligations of and underwritten by unaffiliated insurance companies. They are not insured by the FDIC or any other agency of the United States and are not deposits of or guaranteed by any bank.