US personal lines insurers lower rates in January says MarketScout
The first month of 2014 saw the composite rate for US personal lines policies decrease a percentage point from plus three to plus two percent.
“2013 was a good year for personal lines insurers. We expect continued aggressive pricing, but that will be geographically modified as appropriate. Coastal homeowners continue to enjoy competitive rates because of the lack of windstorm activity in 2013, despite Superstorm Sandy,” said Richard Kerr, CEO of MarketScout and founder of the Council for Insuring Private Clients (CIPC).
In terms of specific lines, MarketScout says homes under $1,000,000 in value saw a 2 percent increase assessed, whereas high value homes, or those that cost over $1,000,000 paid an addition four percent. Both of these metrics, however, decreased a percentage point from from December 2013 rates. As for automobile and personal articles, rates remained about the same although automobile and personal articles floaters were both up at plus two percent.
An in-depth look at the numbers….
|Personal Lines||Rate Change|
|Homeowners under $1,000,000 value||Up 2%|
|Homeowners over $1,000,000 value||Up 4%|
|Personal Article||Up 2%|