According to the MarketScout Market Barometer, the composite rate for U.S. personal lines increased in the second quarter to 4.6%.
U.S. personal lines rose an average 4.9% during the firth quarter.
Dallas-based MarketScout, a division of Novatae Risk Group, said high net worth homes valued over $1 million saw the largest hikes of 6.7% during the second quarter.
“We have just now entered hurricane season, so for those owning homes in coastal areas, expect homeowners’ rates to go up, not down,” said Richard Kerr, CEO of Novatae Risk Group, in a statement. “Agents should advise their clients in coastal areas to renew their insurance between January and March, as rates are often much more favorable during those months.”
Personal auto insurance rates increased 5.7% on average in Q2, added MarketScout.
Switching to commercial lines, the composite rate increased 2.8% in Q2, remaining fairly steady from the average increase of 3% during the first three months of the year.
Like Q1, commercial auto rates went up 6.7% to lead all coverage classes during Q2. Umbrella and excess liability came in at up 5%, an improvement over average increases of 6.7% in Q1. General liability saw rates go up an average 3.7% in Q2 compared to up 2.3% in Q1.
Commercial property was up 3.6% in Q2—the same result as Q1. Kerr said the distribution and underwriting company is “seeing steady improvement in property insurance rates, which is encouraging for insurance buyers.”
Topics
Trends
Commercial Lines
Pricing Trends
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