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Commercial & Personal Lines Rates End 2019 on High Note

Posted By Administration, Tuesday, January 14, 2020

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

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