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First Quarter 2021 Personal Lines Composite Rate Moderates Slightly

Catastrophe Prone Areas Continue to be Hammered with Large Increases


US personal lines market was assessed a composite average rate increase of 5.6 percent in the first quarter 2021 as compared to 6.3 percent in the last quarter of 2020. Richard Kerr, CEO of MarketScout, said, “While rates moderated slightly, the market continues to harden for homeowners in Florida and California. Insurers are cutting back and homeowners are paying the price. If you own a CAT exposed home in Florida or in a wildfire prone area in California, the rate increases can be as much as 25 to 30 percent.”

Automobile and personal articles rates were down slightly in the first quarter.

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.

A summary of the first quarter 2021 personal lines rates is set forth below.

Personal Lines
Homeowners under $1,000,000 value Up 5%
Homeowners over $1,000,000 value Up 6.7%
Automobile Up 5.3%
Personal Articles Up 5.3%

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 nine consecutive years from 2012 to 2020. The company has offices in Alabama, Arkansas, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. California license #0D60423.