Across the United States, personal lines insurance rates will vary based upon geographic location, account history, and insurer’s perception of the probability of future losses. On average, US personal lines insurance rates were up 3 percent in May.
Richard Kerr, CEO of MarketScout, outlined the current personal insurance market stating, “Large, admitted insurers control the vast majority of the US personal lines market. Because of their size and ability to withstand market trends, the large insurers don’t normally respond to unfounded price aberrations in any given market. A strong balance sheet enables these insurers to stick to their guns on a long-term basis. However, smaller insurers will vary pricing almost monthly, as permitted by respective state insurance regulations. Regardless, the volume of the larger insurers has a significant impact on the US personal lines composite rate. Thus, the reason for another month of steady results at plus 3 percent.”
Homeowners under $1,000,000 in Coverage A value received, on average, a slight increase from April to May, from plus 3 to plus 4 percent.
Personal articles floaters adjusted rates downward from plus 2 to plus 1 percent. Homeowners’ coverage for homes over $1,000,000 in coverage A value and automobile exposures remained the same as in April at plus 3 percent.
A summary of the May 2014 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 Dallas, California, Connecticut, Florida, Illinois, Indiana, Michigan, Nebraska, New Jersey, Texas and Washington, D.C.