Rate Increases Continue to Hit California and Florida Homeowners

US Property and Casualty Rates Ebb and Flow
July 8, 2019
Commercial insurance rate hikes accelerate
July 8, 2019

US Personal Lines Rates Increase Significantly in Cat-Prone Areas

The composite rate for US personal lines was up 3.5 percent in the second quarter 2019 as compared to an increase of 2 percent in the first quarter. Rates in some catastrophe areas are up as much as 50 percent.

Richard Kerr, CEO of MarketScout outlined the market environment, “Rates for homes are up in all locations; however, Florida and California are getting hit the hardest. Large admitted markets are cutting back in Florida resulting in more business going to the more expensive non-admitted markets. In California, most insurers are running from new business and remain fearful of another torturous wildfire season. Some homeowners are being assessed 50 percent rate increases along with much larger deductibles. Only three months ago, these rate increases were around 20 to 25 percent so the trend is up. This upward trajectory is likely to continue for the rest of the year especially with the fourth of July earthquake reminding underwriters quake exposure is very real.”

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.

A summary of the second quarter 2019 personal lines rates is set forth below.

Personal Lines
Homeowners under $1,000,000 value Up 3.5%
Homeowners over $1,000,000 value Up 3.5%
Automobile Up 3.5%
Personal Articles Up 2.5%

 

View Graph

 

About MarketScout

MarketScout is a national MGA and wholesale broker specializing in assisting agents in placing high net worth personal lines business. The firm is a Lloyd’s Coverholder and MGA for U.S. insurers. MarketScout owns and operates the MarketScout Exchange as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is founder of the Council for Insuring Private Clients (CIPC) and administers the Certified Personal Risk Manager (CPRM) designation in partnership with The National Alliance for Insurance Education and Research. The firm founded the Entrepreneurial Insurance Alliance (EIA) in 2007 and presents the Entrepreneurial Insurance Symposium (EIS) every September. In 2017, MarketScout founded MarketScout InsurTech (MIT) venture fund. In January 2018, MarketScout launched its Incubator to accelerate start-up MGAs and assume operational functions for existing MGAs and insurers. MarketScout has offices in Arizona, Arkansas, California, Florida, Georgia, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at MarketScout.com. California license #0D60423.