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Personal Lines Rates End 2019 with Increase

Fourth-quarter 2019 results are in and personal insurance buyers were assessed an average of 3.5% more in 2019 compared to 2018.
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Fourth-quarter 2019 results are in and personal insurance buyers were assessed an average of 3.5% more in 2019 compared to 2018.

 “We must all keep in mind the barometer results include all types of personal lines insurance across the U.S.,” says Richard Kerr, CEO of MarketScout. “Massive placements for homes, autos and 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%,” Kerr adds.

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 or 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.

A summary of the fourth-quarter 2019 personal lines rates shows the areas that saw the most increases:

  • Homeowners under $1,000,000 value: Up 4.25%
  • Homeowners over $1,000,000 value: Up 6.25%
  • Auto: Up 4.5%
  • Personal articles: Up 3.5%

MarketScout
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 U.S.

MarketScout is a national MGA and wholesale broker specializing in assisting agents in placing high net worth personal lines business.

14977
Tuesday, June 2, 2020
Personal Lines