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Composite Personal Lines Rates Increase 5.2% in Fourth Quarter 2022

Cat-exposed homeowners accounts continue to experience large rate increases  

The composite rate for all personal lines coverages increased 5.2% in the fourth quarter of 2022, a rate which held steady for most of the entire year. In the fourth quarter 2022, homes under $1,000,000 in coverage A value were up 7%, while homes over $1,000,000 were up 7.3%. “We constantly remind our subscribers that the composite rate for homeowners includes homes in all geographic regions,” said Richard Kerr, Founder of MarketScout and CEO of Novatae Risk Group. “Catastrophe-prone areas, such as wildfire zones in California and wind-exposed Florida locations, are being assessed higher rate increases, sometimes as much as 30% to 40%. Reforms recently enacted by the Florida legislature may help moderate rate increases for all homes in Florida, but any home which is wind exposed will still experience rate increases.” Automobile insurance rates are trending upwards with the fourth quarter composite measuring an increase of 5%. Personal articles, jewelry and fine art rates have been steadily increasing at a moderate pace. The fourth quarter increase was 4%.

The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout's analysis of market conditions. These surveys help to further corroborate MarketScout's actual findings, mathematically driven by new and renewal placements across the United States.DIV

Summary of annual personal lines average rate increases from 2012 to 2022.

A summary of the fourth quarter 2022 personal lines rates is set forth below.

Personal Lines
Homeowners under $1,000,000 value Up 7%
Homeowners over $1,000,000 value Up 7.3%
Automobile Up 5%
Personal Articles Up 4%

About MarketScout

Founded in 2000, MarketScout is an insurance distribution and underwriting company headquartered in Dallas, Texas. The company is a Lloyd’s Coverholder and MGA for US insurers with specialty expertise in workers’ compensation, private client solutions, energy, healthcare, fine art, equine, jewelry, professional liability, and many specialty programs. The company owns and operates the MarketScout Exchange, as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is the founder of the Council for Insuring Private Clients (CIPC) and administers the Certified Personal Risk Manager (CPRM) designation in partnership with The National Alliance for Insurance Education & Research. MarketScout is the only insurance organization to receive The National Alliance’s exclusive partnership and endorsement. The company founded the Entrepreneurial Insurance Alliance (EIA) in 2007 to support insurance entrepreneurs and in 2017 founded the MarketScout InsurTech (MIT) venture fund. In January 2018, it launched an Incubator to accelerate start-up MGAs and assume operational functions for existing MGAs and insurers. MarketScout’s company culture and sense of community encourages growth, learning and collaboration. The company has been named as one of the Best Places to Work in Insurance by Business Insurance for ten consecutive years from 2012 to 2021. The company has offices in Alabama, Arkansas, Florida, Illinois, Nebraska, New York, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. California license #0D60423.