While homeowners and personal articles insurance on a composite basis were down slightly in the first quarter of 2023, auto insurance rates increased.
Personal lines rate increases moderated slightly in the first quarter of 2023, according to the latest MarketScout report. The U.S. composite rate is up 5%, compared to 5.2% in the fourth quarter of 2022.
While homeowners and personal articles insurance on a composite basis were down slightly in the first quarter of 2023, auto insurance rates increased by 6.3% compared to a 5% rise in the fourth quarter of 2022.
“The rating environment for personal lines is tracking with Q4 2022, which is to be expected," said. Richard Kerr, CEO of Novatae Risk Group. “The real action in personal lines comes during wind and wildfire season. However, even now, catastrophe-exposed, high-value property owners are struggling to find coverage without experiencing significant rate increases and restriction of terms such as higher deductibles and reduced coverage."
Personal lines rates during the first quarter of 2023:
Homeowners under $1,000,000 value
| Up 5%
|
| Homeowners over $1,000,000 value | Up 6% |
| Personal Auto | Up 6.3%
|
| Personal Articles | Up 3.3% |
Meanwhile, commercial rates are continuing to steadily climb. The composite rate for commercial property-casualty rates rose by 5% in the first quarter of 2023. Coverages of notable change were general liability, down from 6.7% increases in 2022's fourth quarter to up by 4.3% in 2023's first quarter; and employment practices liability insurance, deflating from 6.3% increases to 3.7%.
By account size, rates decreased for all sizes except those with premiums of $250,000 to $1,000,000, which were up in comparison to the first quarter of 2022 from 4% to 4.7% in the first quarter of 2023.
“It's not surprising to see rates holding steady in the first quarter," Kerr said. “We will get a better measure of overall composite rates for 2023 in the next two quarters."
Commercial lines rates during the first quarter of 2023 by insurance market:
Commercial Property
| Up 9.3%
|
Business Interruption
| Up 4.7% |
| Business Owners Policy | Up 3%
|
| Inland Marine | Up 3.3% |
| General Liability | Up 4.3% |
| Umbrella and Excess | Up 5% |
Commercial Auto
| Up 7.3% |
| Workers Compensation | Down 0% |
| Professional Liability | Up 5% |
| Directors & Officers Liability | Up 4.3% |
| EPLI | Up 3.7% |
| Fiduciary | Up 2% |
| Crime | Up 1% |
| Surety | Up 1% |
On an industry level, transportation held the only quarter-over-quarter increase, increasing by 7.3% in the fourth quarter of 2022 to 8% in the first quarter of 2023.
Premium trends by industry class:
Manufacturing
| Up 4.3% |
| Contracting | Up 5% |
| Service | Up 5% |
| Habitational | Up 3.3% |
| Public Entity | Up 5% |
| Transportation | Up 8% |
| Energy | Up 4.7%
|
MarketScout is a national MGA and wholesale broker specializing in assisting agents in placing high net worth personal lines business.
