No Wind, No Quake, No Rate Changes
August composite rate holds steady at plus 3%
The U.S. personal lines market did suffer from some wildfire and flood claims in August but the impact was not significant because there were no big cat effects. Thus, the composite rate held steady at plus 3 percent for US based personal lines exposures.
Homes with coverage A valuations (value of the home excluding the land cost) under $1,000,000 received a 4 percent rate increase and those homes over $1,000,000 had an increase of plus 3 percent. Automobile and personal articles floaters were also steady at plus 3 percent and plus 1 percent respectively.
Richard Kerr, CEO of MarketScout explained the static personal lines market by noting, “August is a slow month for personal lines insurers. Many insureds are on holiday and as a result, fewer policies are set to renew. So, much like the stock market, there normally isn’t a lot of volume or movement in the personal lines market in August..”
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.
A summary of the August 2013 personal lines rates is set forth below.
Homeowners under $1,000,000 value
Homeowners over $1,000,000 value
MarketScout is a national MGA and wholesale broker specializing in assisting agents in placing high net worth personal lines business. The firm operates the MarketScout Exchange at marketscout.comas well as over 40 other online and traditional underwriting and distribution venues. MarketScout is the founder of the Council for Insuring Private Clients (CIPC). The CIPC's mission is to provide a venue where agents and insurers may collaborate on how to better serve their private clients. MarketScout has offices in California, Connecticut, Florida, Illinois, Indiana, New Jersey, Texas and Washington, D.C.