April 8, 2019 | Insurance Business America
Author: Ryan Smith
The composite rates for both commercial and personal lines increased by 2% year over year in the first quarter, according to new data from MarketScout.
“Transportation risks were up by 4%,” said Richard Kerr, CEO of MarketScout. “Auto continues to be assessed with the most aggressive rate increase by line of coverage at plus 7%. Also, energy exposures are now starting to see more rate increases. Otherwise, the commercial market is stable.”
Composite rate movement for commercial lines:
By coverage class
By account size
Kerr said that while the personal lines composite rate only rose 2% overall, that number can be a bit deceiving.
“The personal lines market is so large that the composite rate can sometimes be misunderstood,” Kerr said. “There is an incredible volume of business in benign areas, which helps stabilize rate increases in catastrophe-exposed areas such as Florida and California. Some of the insurers of larger homes in Florida are increasing rates significantly or choosing to restrict their writings. In California, it’s a mess for wildfire- and mudslide-exposed properties. California homeowners are experiencing rate increases of 20% for homes in brush areas, and for the brush-exposed homes without adequate protection, rate increases are up over 40%.”
Personal lines rate movements included: