Revealed – personal lines rate changes in Q4 | Insurance Business America
The composite rate for all personal lines coverages rose 5.2% in the fourth quarter of 2022, a rate of increase which stayed steady most of the year, according to a new report from MarketScout.
Homes under $1 million in coverage A value were up 7% in the fourth quarter, while homes over $1 million were up 7.3%.
“We constantly remind our subscribers that the composite rate for homeowners includes homes in all geographic regions,” said Richard Kerr, founder of MarketScout and CEO of Novatae Risk Group. “Catastrophe-prone areas, such as wildfire zones in California and wind-exposed Florida locations, are being assessed higher rate increases, sometimes as much as 30% to 40%. Reforms recently enacted by the Florida legislature may help moderate rate increases for all homes in Florida, but any home which is wind-exposed will still experience rate increases.”
Auto insurance rates also trended higher, with the Q4 composite seeing a 5% increase, MarketScout reported.
Personal articles, jewelry and fine art rates have also been increasing steadily, albeit at a moderate pace. The increase in Q4 was 4%.
In Q3, the personal lines composite rate rose 4.58% annually.
Read next: What’s happening with P&C rates in the US?
See below for a summary of average annual rate increases for personal lines.
- Homeowners (under $1 million): up 7%
- Homeowners (over $1 million): up 7.3%
- Auto: up 5%
- Personal articles: up 4%
MarketScout is an insurance distribution and underwriting company based in Dallas. It was acquired by Novatae Risk Group in November.
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