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US Personal Lines Insurers Assess Composite Price Increase of 3.5%

Slowing Economy May Impact Pricing for Balance of 2020


Personal lines insurance buyers in the United States enjoyed more favorable premiums with rates up 3.5 percent in the first quarter 2020 as compared to up 4.5 percent in the last quarter of 2019.

Homeowners rates adjusted the most with homes under $1,000,000 in coverage A value being assessed with a rate increase of 3 percent in first quarter 2020 as compared to 4.25 percent in the fourth quarter of 2019. For larger homes over $1,000,000 in coverage A value, the increase was down a full two percent from plus 6.25 percent to plus 4.25 percent.

“We do anticipate continued rate increases in the non-admitted market, particularly in California and Florida,” said Richard Kerr, CEO of MarketScout. “Many secondary and vacation homes are placed in the non-admitted market. The rates for these homes will be under even more pressure because of insurers’ concern insureds may not be maintaining the property in the midst of the COVID-19 crisis.”

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 first quarter 2020 personal lines rates is set forth below.  
Personal Lines
Homeowners under $1,000,000 value Up 3%
Homeowners over $1,000,000 value Up 4.25%
Automobile Up 4%
Personal Articles Up 3%
  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, California, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. For more information, please visit us at California license #0D60423