US personal insurance rates up 4% in Q3 on second quarter of slowdown

Personal lines insurance rates across the US rose at a 4% annual pace in the third quarter of 2023, the third quarter of deceleration from what increasingly looks like a 2022 peak, the quarterly pricing survey conducted by Lloyd's coverholder and US MGA MarketScout indicated.

“Insurers are feeling better about their results in the personal lines space, resulting in lower rate increases,” Richard Kerr, CEO of Novatae Risk Group, said in a comment to the survey results.

“However, the hottest summer on record does create concern for the future,” he said.

Rate deceleration covered all measured lines, led by a 0.6 point decline for high-value homes over $1 million to a 3.7% annual growth rate. Rate growth is holding stronger for the under $1 million category, down 0.4 points to a 5.3% pace.

Personal automobile insurance rates slowed for the second quarter running, now down 0.4 points to a 4.3% annual gain after peaking at 6.3% in Q1, survey results indicated.

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