It’s no secret that it’s becoming increasingly difficult for a producer to make a living relying on the sales of personal lines products. With the increase in online shopping options for auto and homeowners’ insurance, reliance on price over protection has become the mode du jour.
And with the slow increase in personal lines pricing overall, pressure on agents to find the lowest price for their clients has also grown—and many are giving in.
That’s the perspective from Richard Kerr, CEO of MarketScout insurance exchange. In the company’s roundup of pricing movement among personal and commercial insurance lines, Kerr notes that composite rates for personal lines measured +3% in November, prompting some agents to attempt to buck this trend by compromising on coverage.
“Some personal lines agents are securing actual year-on-year rate decreases for their clients,” Kerr said. “However, they could be sacrificing coverage or changing deductibles in order to get the reductions.”
Overall, automobile insurance was the only line of personal lines coverage that measured a month-on-month rate increase in November, rising 3% compared to October’s 2% increase.
Homeowners’ rates remained fairly flat, with homes over $1 million in value assessed at a 3% increase while homes under $1 million paid a slightly higher rate at +4%.
A summary of November personal lines rates includes:
Homeowners under $1,000,000 value: Up 4%
Homeowners over $1,000,000 value: Up 3%
Automobile: Up 3%
Personal Articles: Up 1%
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