3 minute read
Industry
Fourth quarter results are in and personal insurance buyers were assessed an average of 3.5 percent more in 2019 as compared to 2018. US Personal Lines Rates Up 4.5% in Q4 Some CAT Exposed Homes as Much as 35%
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.
Personal lines rate changes throughout 2019
Fourth quarter rates for commercial insurance placements across the United States increased 5 percent. The steady trend of upward rate movement reflects insurers plans to continue increasing prices across all lines of coverage with workers’ compensation being the only exception. US Commercial Insurance Rates Up 5% in Fourth Quarter Rates Continue to Increase at Close of 2019
Richard Kerr, CEO of MarketScout noted, “Auto rate increases have been up all year long; however, D&O and professional rate increases have spiked significantly in the fourth quarter.”
According to Kerr, “Insurers are utilizing the many catastrophe modeling tools to carefully analyze their property exposures. We expect many of the major property catastrophe insurers to curtail their 2020 writings in California brush and East and Gulf Coast wind areas. Naturally, this will result in higher rates to insureds.”
The following graphic reflects rate changes in US commercial insurance for the last 18 years.
Commercial lines rate changes throughout 2019
Summary of the fourth quarter 2019 rates by coverage class
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.
MarketScout, an insurance distribution and underwriting company headquartered in Dallas, compiles the Commercial and Personal Lines Market Barometers. 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. For more information, please visit MarketScout.com.
doesn’t just tell partner agencies what the path looks like, we walk it with them. We understand the challenges independent agencies face and what it takes to propel them towards growth. We work shoulder-to-shoulder with partner agencies to enable them to reach greater levels of success.
Because independence works better together.
Improve Productivity And Employee Morale With Errand Running Services
On-demand errand running services through our preferred nationwide network • Post Office • Donations Drop Off • Banking • Pet Assistance • DMV Support • Watch Repair • Picture Framing • Return Item to Local Store • Birthday Party Supplies • Gift Purchases • Print Pictures • Have Keys Made
Employee requests errand service Circles gathers details, quote and notifies employee Employee approves quote with Circles
Circles uses it’s credit card to secure errand service, goods with provider
Circles Errand Running Network
Circles charges customers credit card and provides receipt
* Errand pricing determined by location, urgency of task, mileage, distance traveled and time spent on task.
To learn more about Circles errand running services, visit our website at iiaofil.org/circles or contact:
