US Personal Lines Rates Up 6.3% in Fourth Quarter 2020

Large homes assessed biggest rate increase

 

The composite rate for personal lines was up 6.3 percent in the fourth quarter of 2020, reflecting the market’s rate acceleration. In fact, homeowners with properties valued over $1,000,000 paid average rate increases of 8.2 percent clearly signaling ongoing price increases for large homes. Richard Kerr, CEO of MarketScout profiled market conditions by noting, “Rates are up modestly across all sectors of personal insurance with high net worth homeowners rates up the most. Wealthy clients are buying more homes as an escape and if they are not buying something new, they are renovating the ones they already own. Homeowners lucky enough to own properties with the home replacement cost in excess of $1,000,000 have borne the brunt of most of the rate increases, especially in the fourth quarter 2020. For those homeowners fortunate enough to own a beach or mountain home, increases are more severe. Homes in brush fire areas of California or hurricane prone sections of Florida, are assessed rate increases as high as 20 to 30 percent. The only way to offset big rate increases is to shop your insurance and limit coverage or raise deductibles.”

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.

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A summary of the fourth quarter 2020 personal lines rates is set forth below.

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 nine consecutive years from 2012 to 2020. The company has offices in Arkansas, Florida, Illinois, Nebraska, Pennsylvania, South Carolina, Tennessee, Texas, and Washington, DC. California license #0D60423.