MarketScout — A Look at 2nd Quarter Insurance Prices

MarketScout’s quarterly report says commercial rates in the second quarter of 2024 rose 4.4%. That compares to the 3.9% in the first quarter. Company CEO, Richard Kerr said that’s a fairly steady increase and its because commercial insurers are currently comfortable with their pricing.

Here are the numbers with all lines seeing increases: 

Property — 7%

Business interruption — 5%

BOP — 5%

Inland marine — 4.7%

GL — 4.7%

Umbrella/excess — 4.7%

Auto — 8%

Work comp — 0%

PL — 3.7%

D&O — 3.3%

EPLI — 1.7%

Fiduciary — 1.3%

Crime — 1.3%

Surety — 1%

MarketScout says the average increase for personal lines insurance in the second quarter of 2024 is 7.6%. Kerr said it’s a huge jump from the 4.8% average in the first quarter.

Leading the increases are homeowners and personal auto.

Auto owners saw rates rising an average of 8.7%. Homeowners with homes valued below $1 million saw hikes averaging 8%. Those with homes valued above $1 million saw a 9% jump.

“Some homeowners insurers are increasing rates because they feel the exposure reported is less than the replacement cost, thereby resulting in generally higher claims than anticipated. Building materials are more expensive due to inflationary pressures, so claim payments are larger than anticipated,” Kerr said. “Auto insurance rates are up because of increased repair costs and higher-than-expected liability claims.”

Source link: Insurance Journal —

Source link: Insurance Business America —

Source link: Business Insurance —

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