Personal-lines insurance rates are up 4 percent in March as catastrophe modeling adjustments are having an effect on homeowners premiums, says MarketScout.
The Dallas-based electronic insurance exchange’s monthly market barometer indicates insurance rates on homes valued under $1 million went up 4 percent in March, compared to the same month a year ago. Home valued at more than $1 million saw rates go up 5 percent.
MarketScout CEO Richard Kerr says “some underwriting companies feel the modeling is questionable,” but a trend has surfaced as modelers, as Kerr puts it, “widen the areas that may be impacted by huge storms.”
Home in not-catastrophe-prone areas might even see slight rate decreases at renewal but homes on the coast or those prone to earthquakes, hail and tornadoes “will pay more,” Kerr observes.
Rates for auto insurance were up 2 percent in March, compared to March 2012.
Kerr says lower premiums in this line are driven by the fact so many insurers are competing for mono-line auto.