The composite rate for personal lines continued to increase. Rates increased from plus 3.5 percent in the second quarter 2019 to plus 4.5 percent in third quarter.
Average rates for homeowners coverage for large homes over $1,000,000 in coverage A value increased the most at plus 6.5 percent. This is a notable increase and is somewhat driven by large homes in CAT prone areas such as California and Florida. Rates for homes under $1,000,000 also increased from last quarter.
Rates for auto and personal articles coverages increased by one full percentage point from the third to the fourth quarter.
Richard Kerr, CEO of MarketScout noted, “So far we have not been hit hard with any catastrophic losses in the second half of 2019. Had Hurricane Dorian continued on to mainland Florida as a category 4 or 5 storm, agents and brokers would really be scrambling. Even without a hit from Dorian, CAT exposed homes are suffering significant increases.”
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.
.