When insurance firms launched social media initiatives, the results were rewarding.
The 2013 year is projected to close with solid results for most personal lines insurers. However, a few relatively new entrants to the personal lines marketplace are experiencing poor results due to underpricing their product and unexpected catastrophe claims from events such as Superstorm Sandy and isolated tornadoes.
The December composite rate for personal lines insurance in the United States was plus 3 percent.
Homes valued over $1,000,000 continue to be assessed the most aggressive increases at plus 5 percent. Richard Kerr, CEO of MarketScout and founder of the Council for Insuring Private Clients (CIPC), provided insight noting, “Over the course of the last four years, rates for high valued homeowners were comparatively low because of aggressive pricing from some of the newer high net worth insurers. As a result of the aggressive pricing, the market as a whole responded with lower rates. In the last year and a half, high-net-worth insurers have been raising rates to more appropriately price for the broader coverage provided. Thus far, insureds are willing to pay the increases. As a result, pricing is going up for homes valued over $1,000,000, especially in catastrophe prone areas.”
Homes under $1MM registered rates at an average of plus 3 percent, personal auto measured plus 2 percent and personal articles tallied plus 3 percent.
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 December 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.com as 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.