US personal lines composite insurance rates up 5.2% in Q4: MarketScout
Personal lines insurance rates across the US rose by 5.2% in the fourth quarter, a rate which held roughly steady for the bulk of the year, according to the quarterly pricing survey conducted by Lloyd’s coverholder and US MGA MarketScout.
Homeowners’ coverage rose 7% for homes of up to $1 million and 7.3% for the higher-value category.
“Catastrophe-prone areas, such as wildfire zones in California and wind-exposed Florida locations, are being assessed higher rate increases, sometimes as much as 30% to 40%," said MarketScout founder and Novatae Risk Group CEO Richard Kerr.
Automobile insurance rates "are trending upwards" with the fourth quarter composite showing a 5% increase.
Personal articles, jewellery and fine art rates have been "steadily increasing at a moderate pace," including a fourth quarter increase of 4%.
Legislative reforms recently enacted in Florida "may help moderate rate increases for all homes in Florida, but any home which is wind exposed will still experience rate increases,” Kerr said.
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