Composite Rate for Personal Lines Insurance Rises to Plus 4.5%

Rates Up 4% in Third Quarter
October 7, 2019
US commercial rates increase 4% in Q3: MarketScout
October 7, 2019

Homeowners rates continue to increase across US

The composite rate for personal lines continued to increase. Rates increased from plus 3.5 percent in the second quarter 2019 to plus 4.5 percent in the third quarter.

Average rates for homeowners coverage for large homes over $1,000,000 in coverage A value increased the most at plus 6.5 percent. This is a notable increase and is somewhat driven by large homes in CAT prone areas such as California and Florida. Rates for homes under $1,000,000 also increased from last quarter.

Rates for auto and personal articles coverages increased by one full percentage point from the third to the fourth quarter.

Richard Kerr, CEO of MarketScout noted, “So far we have not been hit hard with any catastrophic losses in the second half of 2019. Had Hurricane Dorian continued on to mainland Florida as a category 4 or 5 storm, agents and brokers would really be scrambling. Even without a hit from Dorian, CAT exposed homes are suffering significant increases.”

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 third quarter 2019 personal lines rates is set forth below.

 

Personal Lines
Homeowners under $1,000,000 value Up 4%
Homeowners over $1,000,000 value Up 6.5%
Automobile Up 4.5%
Personal Articles Up 3.5%

 

 

 

 

 

 

 

 

 

 

 

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 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.