October 18, 2021|Property Casualty 360
by Steve Hallo
During the third quarter of 2021, personal line insurance rates increased 6.6%, according to MarketScout.
More aggressive pricing for homeowners policies is typical of the third quarter, which tends to see an increase of losses from wind and wildfire claims, according to Richard Kerr, CEO of MarketScout.
Rates for homes with less than $1 million in coverage A value saw a more moderate increase, growing 4%. Homes valued at more than a $1 million experienced rate increases closer to 7%, according to the insurance distribution and underwriting firm.
“The national average rate increases for homeowners are not horrific. However, for those with homes in California and Florida, rates can be up as much as 25%,” Kerr said in a release. “California homes $20 million and above with high wildfire exposures may not even be able to secure full coverage. Rate increases of 40% are not unusual.”
Rates for personal auto coverage increased at a similar pace to home policy premiums, growing 4.7% during the period, MarketScout reported.
These rate increases follow a second quarter with 4.7% personal line premium growth, signaling some moderation after the year started with a 5.6% increase, according to MarketScout. All personal line coverages were less expensive in the second quarter than in the first.
This follows an analysis that found commercial rates were up 6.8% during the third quarter. Umbrella and D&O are continuing to see the highest surges as each increased double digits during the period, according to MarketScout. Commercial property rates increased 9%.