|Personal lines insurers increased rate an average of 2.25 percent in the fourth quarter of 2018. The personal lines composite rate increase for all of 2018 was plus 2.5 percent.
Homeowners rates in the fourth quarter 2018 remained stable at plus 3 percent for homes under $1,000,000 and plus 2 percent for homes over $1,000,000. Automobile rates were down slightly and personal articles rates were up slightly, both moving by one-half of one percent.
Richard Kerr, CEO of MarketScout, pointed out the challenges homeowners in California are enduring by noting, “The brush and wildfire issues in California are similar to the windstorm issues suffered in Florida 12 to 14 years ago. As more California insurers are deemed insolvent, and others begin to restrict their capacity, the market is hardening. We expect to see new entrants into the California market. We also expect to see rate increases from non-admitted insurers of 10% to 50% in the short term. It’s going to be a rough ride until things settle down a bit.”
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 fourth quarter 2018 personal lines rates is set forth below.
MarketScout is a national MGA and wholesale broker specializing in assisting agents in placing high net worth personal lines business. The firm is a Lloyd's Coverholder and MGA for U.S. insurers. MarketScout owns and operates the MarketScout Exchange as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is founder of the Council for Insuring Private Clients (CIPC) and administers the Certified Personal Risk Manager (CPRM) designation in partnership with The National Alliance for Insurance Education and Research. The firm founded the Entrepreneurial Insurance Alliance (EIA) in 2007 and presents the Entrepreneurial Insurance Symposium (EIS) every September. In 2017, MarketScout founded MarketScout InsurTech (MIT) venture fund. In January 2018, MarketScout launched its Incubator to accelerate start-up MGAs and assume operational functions for existing MGAs and insurers. MarketScout has offices in Arizona, Arkansas, California, Florida, Georgia, Illinois, Iowa, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at MarketScout.com.
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