Personal Lines Composite Rate Up 2% In 1Q

“The personal lines market is so large that the composite rate can sometimes be misunderstood,” noted Richard Kerr, CEO of MarketScout. “There is an incredible volume of business in benign areas which helps stabilize rate increases in catastrophe exposed areas such as Florida and California.” Kerr also noted, “Some of the insurers of larger homes in Florida are increasing rates significantly or choosing to restrict their writings. In California, it’s a mess for wildfire and mudslide exposed properties. California homeowners are experiencing rate increases of 20 percent for homes in brush areas and for the brush exposed homes without adequate protection, rate increases are up over 40 percent.”

Even after including the significate rate increases in catastrophe prone areas the composite increase for all US homeowners was plus 2 percent. Auto was up 2.5 percent and personal articles was up only 1 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 first quarter 2019 personal lines rates is set forth below.