“Rates for homes are up in all locations; however, Florida and California are getting hit the hardest,” Richard Kerr, CEO of MarketScout, said in a statement. (Credit: studioarz/Shutterstock)
The composite rate for U.S. personal lines was up 3.5% in the second quarter of 2019, an increase of 2% in the first quarter, according to MarketScout. Rates in some catastrophe areas are up as much as 50%.
A summary of 2019's second quarter personal lines rates is set forth below:
Personal lines
- Homeowners under $1,000,000 value: up 3.5%
- Homeowners over $1,000,000 value: up 3.5%
- Automobile: up 3.5%
- Personal articles: up 2.5%
“Rates for homes are up in all locations; however, Florida and California are getting hit the hardest. Large admitted markets are cutting back in Florida, resulting in more business going to the more expensive non-admitted markets. In California, most insurers are running from new business and remain fearful of another torturous wildfire season,” Richard Kerr, CEO of MarketScout, said in a statement.
“Some homeowners are being assessed 50% rate increases along with much larger deductibles. Only three months ago, these rate increases were around 20-25%, so the trend is up. This upward trajectory is likely to continue for the rest of the year, especially with the Fourth of July earthquake reminding underwriters [that] quake exposure is very real,” added Kerr.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
