INSIGHT | industry
US Personal Lines and Commercial Insurance Rates By MarketScout
US Personal Lines Rates Up 4.5% in Q4 Some CAT Exposed Homes as Much as 35% Fourth quarter results are in and personal insurance buyers were assessed an average of 3.5 percent more in 2019 as compared to 2018. According to Richard Kerr, CEO of MarketScout, “We must all keep in mind, the barometer results include all types of personal lines insurance across the US. Massive placements for homes/autos/jewelry in the $300,000 to $800,000 value which are in non-cat prone areas impact the rate. If we were to measure homes over $5,000,000 in brush exposed areas of California, the average rate increase would be over 35 percent.� The hardening market has most severely impacted high net worth individuals because of their propensity to own properties in catastrophe prone areas; those on the water or in the mountains/brush. Membership organizations such as the Council for Insuring Private Clients (CIPC) are coming up with creative solutions to help insureds mitigate the impact of rate increases.
Summary of annual personal lines average rate increases from 2012 to 2019.
Summary of the fourth quarter 2019 personal lines rates
Personal lines rate changes throughout 2019
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insight
february 2020
