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US Composite Personal Lines Insurance Rates Up 5.79% for 2024

Barometer

FOURTH QUARTER 2024 MODERATED TO PLUS 4%

COMPOSITE RATE TRENDS:

  • Q4 2024: Composite rate increased by 4%.
  • Full Year 2024: Composite rate increased by 5.79%, the highest annual rise in 12 years.

RATE ADJUSTMENTS:

All rates are adjusted for exposure; higher valuations resulted in proportional rate changes.

INSIGHTS FROM RICHARD KERR, CEO OF NOVATAE:

  • Hurricanes Helen and Milton caused less insured damage than anticipated, reducing homeowners' pricing slightly in Q4.
  • However, uninsured flood losses were significant, leaving many homeowners vulnerable.
  • The Q4 rate moderation is a welcome shift, but 2024 still marked a composite rate increase at 5.79%. We’ll monitor how this evolves in 2025.

Risk & Insurance Education Alliance conducted pricing surveys used in MarketScout, a division of Novatae Risk Group’s analysis of market conditions. These surveys help to further corroborate MarketScout, a division of Novatae Risk Group’s actual findings, mathematically driven by new and renewal placements across the United States.

Summary of annual personal lines average rate increases from 2012 to 2024.

PL rate trends

A summary of the fourth quarter 2024 personal lines rates is set forth below.

Personal Lines
Homeowners under $1,000,000 valueUp 3.3%
Homeowners over $1,000,000 valueUp 5%
AutomobileUp 5.3%
Personal ArticlesUp 2.3%
Premium PL rate trends

About MarketScout, a Division of Novatae Risk Group

Founded in 2000, MarketScout, a Division of Novatae Risk Group, 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. 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. In November 2022, MarketScout joined Novatae Risk Group and Richard Kerr was named the combined companies’ CEO.