MarketScout’s February Analysis shows personal lines rates are adjusting upwards by plus three percent
In it’s monthly look at the Personal Lines Rates in the United States, Dallas-based MGA and wholesaler MarketScout says the February 2013 composite rate index for personal lines measured plus three percent over last year’s numbers.
“The personal lines market adjusted in February with insurers offering slightly more competitive premiums,” says MarketScout CEO Richard Kerr. “This isn’t unusual since we are out of the catastrophe season for most parts of the U.S., except for winter storms of course.”
Leading the rate increases for this month was traditional homeowners, personal articles and automobile coverages, all of which were up three percent. High value homes, or those a $1,ooo,ooo or more, were up four percent.
“Homeowners insurance for the ‘Private Client’ sector traditionally garners a higher rate than traditional homeowners…” explains Kerr. “…Specialty high-net-worth agents representing Private Clients require broader coverage and more insurer services, all of which are expensive to offer.”
Commercial Lines Also Saw A Moderate Four Percent Increase in Rates
Looking to the Commercial Lines side, rates also remained moderate increasing by 4 percent as compared to 2012 numbers.
“Over the last year, transportation and energy have lead rate increases most of the time. However, for February, transportation was up 4 percent and energy was up 3 percent. The only industry with a lesser rate increase was public entities. Manufacturing, service and habitational companies lead the February industry rate increases at plus 6 percent.”
In particular, small accounts were six percent while jumbo accounts were up just two percent, demonstrating that the more competitive the account, the better the rates.
The following is the monthly breakdown by Coverage Class, Industry Class and Account Size.
By Industry Class