Personal lines composite rate holds steady at 3.5% in Q2 2020
MarketScout breaks down Q2's personal lines composite rates by homeowners insurance, automobile and possessions.
New numbers and analysis from MarketScout reveal the U.S. personal lines composite rate held steady in the second quarter of 2020. Mimicking Q1, Q2′s composite rate increased by 3.5%.
However, analysts note that underwriters are continuing to assess significant rate increases for high-value homes in catastrophe prone areas, particularly in California and Florida.
Breaking down Q2 personal lines composite rates by category provides more context for specific lines of coverage.
Summary of 2020 Q2 personal lines rates:
- Homeowners (Under $1,000,000 value): +3.3%
- Homeowners (Over $1,000,000 value): +4%
- Automobile: +4%
- Personal articles: +2.7%
In the report, analysts note that the homeowners’ rates for homes valued above and below $1 million increased 4% and 3.3%, respectively, with some notable exceptions. In Cat-exposed areas, specifically in California and Florida, rate increases ranged from 7–20%.
“Many insurers are writing excess of very large deductibles, if at all,” Richard Kerr, CEO of MarketScout, said in a statement. “Insureds are balking at some of the huge rate increases and as a result, there are probably more self-insured high valued homes in the US today than at any time in the past forty years.”
MarketScout, an insurance distribution and underwriting company, says its quarterly analysis on commercial and personal lines market conditions utilized pricing surveys from the National Alliance for Insurance Education and Research in order to further corroborate MarketScout’s actual findings.