The US Personal Insurance Market is Stable Says MarketScout
While the Commercial Insurance Market saw a change of course in February, personal insurance rates across the US remained stable for the second month of 2015.
According to Richard Kerr, CEO of Dallas-based MarketScout, “We expect continued price stability in the US personal lines market. The only area where personal lines rates are changing notably is in catastrophe exposed non-admitted homeowners’ placements. In 2014, more insurers entered this space so the additional competition created some downward rate pressure. However, it appears the new entrants have utilized most of their dedicated cat capacity very early. Rates are trending higher for non-admitted cat capacity. The patient will be rewarded.”
While rates for homeowners insurance for homes under $1,000,000 in value decreased slightly from plus 3 to plus 2 percent, it mirrored the rate increase for homeowners insurance for homes valued over $1,000,000. As for the other two categories in personal insurance, auto insurance rates remained at plus 2 percent while personal articles rates were up a percent.
|Personal Lines||January 2015||February 2015|
|Homeowners under $1,000,000 value||Up 3%||Up 2%|
|Homeowners over $1,000,000 value||Up 2%||Up 2%|
|Automobile||Up 2%||Up 2%|
|Personal Articles||Up 1%||Up 1%|