The second quarter of 2022 found personal and commercial insurance rates stabilizing. Personal lines rates jumped 5.16% in the second quarter. That’s very, very close to the 5.2% we saw in the first quarter.
Increases in personal lines rates are being driven by high home and auto repair costs brought on by inflation. As a result, fine art, collectibles and jewelry became more valuable.
Property-casualty rates are up 5.91% in the second quarter. It’s almost exactly what the hike was in the first. The highest rate increases — 8.7% — were found in transportation.
Commercial property rates rose, too, according to MarketScout’s, Richard Kerr.
“Inflation can create a need for rate increases, so we may see that impact over the next four quarters,” Kerr said. “As for rate decreases, it’s possible higher interest rates could provide insurers with additional investment income which could moderate rate decreases, especially on long tail business.”
Source link: Insurance Journal — https://bit.ly/3dm66Kg
Rising Rates — MarketScout
About PIA Western Alliance
The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.
PIA WESTERN ALLIANCE VALUES OUR STERLING PARTNERS