US personal lines rate increases for the second quarter of 2022 were up 5.16%, in line with the 5.2% increase in Q1, according to a new report from insurance distribution and underwriting company MarketScout.
Insureds in the US are seeing rate increases partly due to inflation on home and auto repair, as well as the increased value of fine art, collectibles and jewelry.
“The Council for Insuring Private Clients gathered in May 2022 with over 250 personal lines professionals sharing information and ideas,” said MarketScout CEO Richard Kerr. “The consensus was to expect continued significant rate increases for all lines of personal insurance in areas affected by cat perils. We believe alternative solutions will be developed to provide additional capacity in Florida and California. Premium increases and coverage restrictions will drive these new solutions. Forty to 50% rate increases are not unusual in cat-prone areas of Florida and California.”
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The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis. These surveys helped to further corroborate MarketScout’s findings, the company said.
Personal lines rates for the second quarter of 2022 changed as follows:
