Across the United States, homeowners insurance is getting more expensive as insurers adjust rates as catastrophe modeling companies widen the areas that may be impacted by huge storms. According to Richard Kerr, CEO of MarketScout, “Homeowners in non-cat areas, such as New Mexico or Nevada, will enjoy renewals as expiring or perhaps even a slight rate decrease. However, if you live in a state that touches a coastal area, is prone to quakes, hail or tornadoes, you will pay more.”
The sophistication of catastrophe modeling should make insurance pricing more reflective of the actual risk, yet some underwriting companies feel the modeling is questionable. The 2013 projections may prove valuable, or be written off as inaccurate, much like the some of the projections made in 2012.
Homeowners have been assessed a composite rate increase of plus 4 percent for homes valued under $1,000,000 in value and plus 5 percent for homes valued at $1,000,000 and over.
Automobile rate increases were actually lower than the preceding month as up 2 percent. Kerr commented, “There are so many solid auto insurers all competing for the monoline auto risk. This creates price competition, which results in lower premiums and package discounts for those insureds that place multiple lines with one insurer.”
Personal articles coverage remained unchanged at 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 March 2013 personal lines rates is set forth below.
MarketScout is a national MGA and wholesaler broker specializing in assisting agents in placing high net worth personal lines business. The firm operates the MarketScout Exchange at www.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 and its related companies has offices in Arizona, Arkansas, California, Connecticut, Florida, Indiana, Illinois, Louisiana, New York, Oregon, Tennessee, Texas and Washington, D.C.