MarketScout has released the 4th quarter numbers for commercial and personal lines rates. On average commercial rates rose 5% in the quarter. MarketScout says this finishes a year in which rates were on a steady rise.
Insurers increasing prices is the main reason. The only exception is workers’ compensation and the two best performing lines in the fourth quarter are D&O and professional rates. They saw a “significant” increase, MarketScout CEO Richard Kerr said.
Here is the average by account size:
• Small accounts (under $25,000) — up 5%
• Medium accounts ($25,000-250,000) — up 4.5%
• Large accounts ($250,000-1,000,000) — up 5.5%
• Jumbo accounts (over $1 million) — up 5.5% over $1 million
Personal lines did well in the fourth quarter, too. Rates averaged a 4.5% hike.
“We must all keep in mind, the barometer results include all types of personal lines insurance across the U.S. Massive placements for homes/autos/jewelry in the $300,000 to $800,000 value, which are in non-cat prone areas, impact the rate,” Kerr said. “If we were to measure homes over $5,000,000 in brush-exposed areas of California, the average rate increase would be over 35%.”
This is how the final quarter ended:
• Homeowners under $1,000,000 value — up 4.25%
• Homeowners over $1,000,000 value — up 6.25%
• Automobile — up 4.5%
• Personal articles — up 3.5%
Source link: PropertyCasualty360.com