Personal Lines Rates Up 2% In 1Q

“Insurers have done a good job forecasting losses so premiums are relatively stable,” explained Richard Kerr, CEO of MarketScout. “Homes valued at less than $1,000,000 have most recently produced a less attractive return on equity for insurers as compared to placements for homes over $1,000,000. As a result, rates for homes under $1,000,000 in value increased 3 percent while rates for larger homes were up 2 percent. Most larger homes are linked to high net worth clients who tend to be a preferred class of insureds. The overall account premiums of these clients are larger and they buy three or four lines of coverage.”

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 2017 first quarter personal lines rates is set forth below.