Personal-lines rates increased by 4 percent in January compared to the same month a year ago, according to MarketScout, continuing a trend of modest hikes for the sector.
Richard Kerr, CEO of MarketScout, says, “Admitted personal-lines insurers continue to take slight rate increases across the board.”
He adds that excess and surplus lines insurers are achieving even higher rate hikes. “For those accounts which must secure terms from the non-admitted market, rate increases are as much as 10 percent in many instances,” Kerr says.
Within the personal-lines sector, personal articles saw the highest average increase, at 5 percent. Rates for auto insurance and homeowners coverage for houses over $1 million in value increased by 4 percent, while homes under $1 million were up by 3 percent.
January’s 4 percent year-over-year increase mirrors 4 percent average personal-lines rate increases in December and November. October 2012 saw a 3 percent increase compared to October 2011.