Rates in some catastrophe areas are up as much as 50%.
The composite rate for U.S. personal lines was up 3.5% in the second quarter of 2019, an increase of 2% in the first quarter, according to MarketScout. Rates in some catastrophe areas are up as much as 50%.
A summary of 2019′s second quarter personal lines rates is set forth below:
Homeowners under $1,000,000 value: up 3.5%
Homeowners over $1,000,000 value: up 3.5%
Automobile: up 3.5%
Personal articles: up 2.5%
“Rates for homes are up in all locations; however, Florida and California are getting hit the hardest. Large admitted markets are cutting back in Florida, resulting in more business going to the more expensive non-admitted markets. In California, most insurers are running from new business and remain fearful of another torturous wildfire season,” Richard Kerr, CEO of MarketScout, said in a statement.
“Some homeowners are being assessed 50% rate increases along with much larger deductibles. Only three months ago, these rate increases were around 20-25%, so the trend is up. This upward trajectory is likely to continue for the rest of the year, especially with the Fourth of July earthquake reminding underwriters [that] quake exposure is very real,” added Kerr.