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September 8, 2020
Third Quarter Composite Rate Increase 6.25%
October 5, 2020


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Third Quarter Personal Lines Composite Rate Up 5%

Cat-Exposed Property Rates Face Big Increases

  Third quarter composite rate for personal lines in the US measured plus 5 percent. According to Richard Kerr, CEO and Founder of MarketScout, “The composite rate is measured on millions of insureds across the United States in low risk areas. Conversely, homeowners in California and coastal areas of Florida are suffering massive rate increases. If an insured owns a home in high risk wildfire or hurricane areas and has suffered prior losses, rate increases can be as high as 40 percent. Many admitted insurers are avoiding taking risk in these areas, thereby, driving insureds to the non-admitted market. Since there is less regulation for non-admitted insurers, they can restrict coverage and charge higher rates.” Automobile rates were up from 4 percent in the second quarter 2020 to plus five percent in the third quarter. Personal articles coverage was also more expensive with an increase from 2.7 percent in the second quarter to plus 4.5 percent in the third quarter. 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 third quarter 2020 personal lines rates is set forth below.
Personal Lines
Homeowners under $1,000,000 value Up 5%
Homeowners over $1,000,000 value Up 5.5%
Automobile Up 5%
Personal Articles Up 4.5%
About MarketScout MarketScout, an insurance distribution and underwriting company headquartered in Dallas, compiles the Commercial and Personal Lines Market Barometers. The firm is a Lloyd's Coverholder and MGA for U.S. insurers. MarketScout owns and operates the MarketScout Exchange as well as over 40 other online and traditional underwriting and distribution venues. MarketScout is 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 and Research. MarketScout has supported innovation and entrepreneurialism via the Entrepreneurial Insurance Alliance (EIA) since 2007. The EIA supports start up entrepreneurs and innovators via financial, advisory and distribution support. In 2017, MarketScout founded MarketScout InsurTech (MIT) venture fund. In January 2018, MarketScout launched its Incubator to accelerate start-up MGAs and assume operational functions for existing MGAs and insurers. MarketScout has offices in Arkansas, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at California license #0D60423