Personal Lines Rates Up 4% with Rates for High Value Homes Leading the Rate Increase
January 2013 saw the personal lines insurance rates increase four percent across the United States says MarketScout. Each month, the national MGA and wholesaler broker based in Dallas analyzes market conditions based on the pricing surveys of The National Alliance for Insurance Education. Based on the January market conditions, the company says that composite rates are up four percent as compared to January 2012.
“Admitted personal lines insurers continue to take slight rate increases across the board. For those accounts which must secure terms from the non-admitted market rate increases are as much as 10 percent in many instances,” says Richard Kerr, CEO of MarketScout.
Here’s a rundown of the rates:
|
Personal Lines |
Rates |
| Homeowners under $1,000,000 value | Up 3% |
| Homeowners over $1,000,000 value | Up 4% |
| Automobile | Up 4% |
| Personal Articles | Up 5% |
Commercial Lines Rates Up 5% in January with Transportation and Manufacturing Showing The Largest Increases
On the commercial lines side, rates across the country have seen a five percent increase based on a composite analysis of the market. The largest increases occurred in the transportation and manufacturing risks which saw rates increases at plus six percent.
“The commercial market is continuing its slow but steady upward trajectory in rates and premiums,” noted Richard Kerr, CEO of MarketScout. “Couple this with slight increases in exposures and the overall premium written on an expiring account is frequently up 8 to 9 percent.”
Here’s a look at the breakdown of commercial lines rates by coverage, industry class, and account size:
| By Coverage Class | Rates |
| Commercial Property | Up 6% |
| Business Interruption | Up 3% |
| BOP | Up 5% |
| Inland Marine | Up 3% |
| General Liability | Up 6% |
| Umbrella/Excess | Up 3% |
| Commercial Auto | Up 5% |
| Workers’ Compensation | Up 4% |
| Professional Liability | Up 4% |
| D&O Liability | Up 4% |
| EPLI | Up 3% |
| Fiduciary | Up 2% |
| Crime | Up 2% |
| Surety | Up 1% |
| By Account Size | Rates |
| Small Accounts Up to $25,000 |
Up 6% |
| Medium Accounts $25,001 – $250,000 |
Up 5% |
| Large Accounts $250,001 – $1 million |
Up 4% |
| Jumbo Accounts Over $1million |
Up 2% |
| By Industry Class | Rates |
| Manufacturing | Up 6% |
| Contracting | Up 5% |
| Service | Up 5% |
| Habitational | Up 5% |
| Public Entity | Up 4% |
| Transportation | Up 6% |
| Energy | Up 4% |
