Dallas-based MarketScout analyzes the personal lines market rate trends each month
September saw homeowner’s rates rise across the country as compared to rates from last year at this time. General Managing Agency MarketScout, who tracks rate trends each month, says that rate trends for homeowner’s are up plus four percent for homes under $1,000,000 as compared to last year, while rates for homes costing a $1,000,000 are up plus three percent.
“The personal lines market is highly regulated, especially for admitted market insurers, ” explains Richard Kerr, CEO of MarketScout in talking about the current rate environment. “So, year on year rate increases are sometimes more of a reflection of what each state allows as rate increases. These filings may be delayed so the increases may not match market sentiment as respects the timing of the increases. In other words, an insurer may file for rate increases in May and those increases may not be approved until months later.”
As for automobile and personal articles coverages, rates are up only slightly as compared to last year’s numbers for September. In comparison with August numbers, rates have decreased however, with automobile insurance rates up only two percent in September versus three percent in August. The same trend can be seen in personal coverages with rates only increasing a percentage point in September versus a two percent increase in August.
An in-depth look at the numbers…
|Homeowners under $1,000,000 value||Up 4%|
|Homeowners over $1,000,000 value||Up 3%|
|Personal Articles||Up 1%|