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Personal Lines Rates Stabilize

CAT season on the cusp, however

US Personal lines rate increases for the second quarter of 2022 were plus 5.16 percent, almost mirroring the 5.2 percent increase in the first quarter 2022. Insureds in the US are experiencing rate increases partly as a result of inflation on home and auto repair, as well as the increased value of fine art, collectibles and jewelry. Richard Kerr, CEO of MarketScout noted, “The Council for Insuring Private Clients gathered in May 2022 with over 250 personal lines professionals sharing information and ideas. The consensus was to expect continued significant rate increases for all lines of personal insurance in areas affected by CAT perils.” “We believe alternative solutions will be developed to provide additional capacity in Florida and California,” added Kerr. “Premium increases and coverage restrictions will drive these new solutions. Forty to fifty percent rate increases are not unusual in CAT prone areas of Florida and California.” 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. A summary of the second quarter 2022 personal lines rates is set forth below.

Personal Lines
Homeowners under $1,000,000 value	Up 5%
Homeowners over $1,000,000 value	Up 7.3%
Automobile	Up 3.7%
Personal Articles	Up 4.7%

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, Iowa, Illinois, Nebraska, Pennsylvania, South Carolina, Texas, and Washington, DC. California license #0D60423.