Personal, commercial P&C insurance rates up in Q4 2021
During Q4 2021, umbrella/excess lines saw the highest rate growth, increasing 11%, according to MarketScout.
During the final quarter of 2021, personal property & casualty lines saw rates increase an overall 4.25%, according to MarketScout, which reported the commercial line composite rate showed moderation during the fourth quarter with a 5.8% increase compared with 6.8% growth the prior quarter.
“The composite national personal lines market continues to steadily adjust rates as necessary without year-over-year massive rate increases,” Richard Kerr, CEO of MarketScout, said in a release. “However, for CAT exposed properties, rate increases can be dramatic; as much as 25%-40% in areas such as the wildfire corridors of California or southern portions of Florida.”
Homeowners policies with a value of $1 million saw the biggest rate increases, growing 6.3% compared with the prior quarter. Homeowners policies with a value under $1 million saw rates increase 3.7%, while personal article insurance rates were up 3%. Personal auto premiums were up 4%, according to MarketScout, which noted 2021 rate growth marked the 10th consecutive year of increases.
Umbrella/excess rates see biggest gains
During Q4, umbrella/excess lines saw the highest rate growth, increasing 11%, followed by D&O (10.3%) and commercial property (8.3%).
Additionally, each of the following lines saw rate increases of 5% or more: Business interruption, business owner policies (BOP), general liability, commercial auto, professional liability and employment practice liability insurance.
While rates increases were seen across lines, those Q4 increases were the same or lower when compared with the previous quarter for every line except BOP, MarketScout reported.
“The fourth quarter 2021 reflects moderation in rate increases. However, when comparing rates for the entirety of 2021, rates did increase from plus 5.6% in 2020 to plus 6.6% in 2021,” Kerr said.
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