Announces New Pricing Metrics for Insurance Professionals
Market Scout, the insurance exchange based in Dallas, Texas, will begin tracking U.S. personal lines rates for homeowners, automobile and personal articles coverages. The company has long tracked the rise and fall of commercial insurance pricing and saw its expansion into tracking personal lines insurance pricing as a natural one.
“We have an exceptional amount of data which is captured from the MarketScout Exchange which enables us to track pricing in the personal lines marketplace,” says Richard Kerr, founder and CEO of MarketScout in the company’s announcement. “…[V]ia our affiliation with The National Alliance for Insurance Education and Research, we conduct in person surveys of thousands of insurance agents, company personnel and other professionals attending continuing education and designation update institutes. By combining data from the MarketScout Exchange with the surveys from The National Alliance, we are able to provide a unique, credible system for summarizing pricing information in the personal lines marketplace. This information will be of great value to insurance professionals and consumers alike.”
MarketScout has been tracking commercial insurance pricing since 2001. Mr. Kerr says that the company will be monitoring personal lines pricing and coverage terms across the United States. “Because of the many factors that impact the prices consumers pay for personal lines insurance, we are taking note of the class of business, geographic location and coverage requirements when monitoring these prices,” explains Kerr. “We are also differentiating between high net worth accounts (homes valued over $1,000,000 or total premium over $10,000) and traditional lines accounts.”
MarketScout’s Analysis for February 2012
For example in February 2012, MarketScout says the composite premium for personal lines was up 2 percent. In addition, for homes valued under $1,000,000 in replacement cost, homeowners insurance premiums saw a 2 percent increase nationally. Insurance for homes valued over $1,000,000 increased by a percent. Finally, insurance premiums for both automobile insurance and personal articles also increased.
Here’s MarketScout’s summary:
Personal Lines
- Homeowners under $1,000,000 value – Up 2%
- Homeowners over $1,000,000 value – Up 1%
- Automobile – Up 2%
- Personal Articles (Jewelry, paintings, etc.) – Up 1%
Commercial Lines Continue to Increase
MarketScout also tracks commercial lines and says that for February 2012, the U.S. composite commercial rate index saw an increase of two percent. MarketScout’s CEO Richard Kerr said of the commercial lines trends,” In September 2011, rates were flat. Since then, we have continued to see evidence of a slowly turning market with the composite rate at 0 percent for October; 1 percent increase for November 2011 through January 2012 and now a 2 percent increase in February 2012. Commercial property and workers’ compensation are leading the increases at plus 3 percent.”
Here is a summary of MarketScout’s findings for February 2012:
Commercial Lines
| Commercial Property | Up 3% |
| Business Interruption | Up 1% |
| BOP | Up 2% |
| Inland Marine | Up 1% |
| General Liability | Up 2% |
| Umbrella/Excess | Up 2% |
| Commercial Auto | Up 1% |
| Workers’ Compensation | Up 3% |
| Professional Liability | Up 1% |
| D&O Liability | Up 1% |
| EPLI | Up 1% |
| Fiduciary | Flat |
| Crime | Up 1% |
| Surety | Flat |
No Specific Market Data for Massachusetts or New England
Agency Checklists contacted MarketScout about whether they prepare specific tracking information tailored to geographic areas such as Massachusetts and New England. MarketScout was kind enough to get back to us to say that at this time they have no specific information for Massachusetts or the New England area.
In any case, interested agents can learn more at the MarketScout website.
