The latest look at both the Personal Lines and Composite P&C Rates for the U.S.
Each quarter, Dallas-based MarketScout compiles the composite rate for both the personal and commercial lines marketplace by analyzing market conditions via pricing surveys conducted by the National Alliance for Insurance Education.
Average US Personal Lines Composite Rate is 2.5% for Q2-2018; Auto Insurance Rates Continue To Increase
Insuring your automobile will continue to be more expensive for the foreseeable future, says MarketScout is in its latest quarterly report on Personal Lines pricing. According to the latest figures issued by the Dallas-based exchange, auto rates during the second quarter of this year have held steady at plus four percent (+4%), matching similar increases seen during Q1-2018.
Personal insurance rates for personal and commercial automobile are trending in the same direction. Underwriting results for personal auto are not much different than commercial; however, because there is so much more capacity for personal auto, the rate increases are not as severe.” noted Richard Kerr, MarketScout CEO in profiling the personal auto insurance marketplace.
In addition, MarketScout also noted that
- Homes during the second quarter, “…under $1,000,000 coverage A values were up 2 percent while homes over $1,000,000 coverage A values were up 3 percent.”
- Personal articles, however, were “…down slightly from the first quarter to the second quarter of 2018.
Personal Lines Q2-2018 |
|
| Homeowners under $1,000,000 value | Up 2% |
| Homeowners over $1,000,000 value | Up 3% |
| Automobile | Up 4% |
| Personal Articles | Up 1% |
U.S. Composite P&C Rate Also Up 2.5% in Q2-2018; Trucking and auto risks receive greatest rate increases
Looking at the Q2-2018 Property and Casualty rates, rates were up 2.5% on average in the U.S. In particular, MarketScout’s Kerr highlighted the “tough conditions” which continue to exist for both trucking and auto.
Insurers seem to have a longer memory these days. It’s hard to find a commercial insurer who hasn’t suffered from a book of auto/trucking risks in the past ten years. As a result of prior bad experiences and the challenges we outlined in our first quarter 2018 barometer, there are fewer companies willing to write auto or trucking risks. The demand is exceeding the supply so rates continue to trend upward.”
Other highlights from the quarterly report
In addition to denoting the tough conditions for trucking and auto, MarketScout also noted the following trends:
- As compared to the first quarter of 2018 property, auto, D&O, and EPLI rates increased.
- Business Interruption and general liability rates moderated.
- Workers’ compensation rates decreased from minus 2 percent to minus 3 percent. All other coverage classifications held steady.
- Small accounts were assessed a slight rate increase while all other accounts were unchanged from the first to the second quarter 2018.
By Coverage Class |
|
| Commercial Property | Up 4% |
| Business Interruption | Up 2% |
| BOP | Up 2% |
| Inland Marine | Up 1% |
| General Liability | Up 1% |
| Umbrella/Excess | Up 2% |
| Commercial Auto | Up 6% |
| Workers’ Compensation | Down 3% |
| Professional Liability | Up 2% |
| D&O Liability | Up 2% |
| EPLI | Up 3% |
| Fiduciary | Up 1% |
| Crime | Up 1% |
| Surety | Up 1% |
By Account Size |
|
| Small Accounts | Up 3% |
| Up to $25,000 | |
| Medium Accounts | Up 3% |
| $25,001 – $250,000 | |
| Large Accounts | Up 2% |
| $250,001 – $1 million | |
| Jumbo Accounts | Up 1% |
| Over $1 million | |
By Industry Class |
|
| Manufacturing | Up 2% |
| Contracting | Up 3% |
| Service | Up 3% |
| Habitational | Up 4% |
| Public Entity | Up 2% |
| Transportation | Up 6% |
| Energy | Up 2% |
