Personal-lines insurance rates are up 4 percent in March ascatastrophe modeling adjustments are having an effect on homeownerspremiums, says MarketScout.
The Dallas-based electronic insurance exchange's monthly marketbarometer indicates insurance rates on homes valued under $1million went up 4 percent in March, compared to the same month ayear ago. Home valued at more than $1 million saw rates go up 5percent.
|MarketScout CEO Richard Kerr says “some underwriting companiesfeel the modeling is questionable,” but a trend has surfaced asmodelers, as Kerr puts it, “widen the areas that may be impacted byhuge storms.”
|Home in not-catastrophe-prone areas might even see slight ratedecreases at renewal but homes on the coast or those prone toearthquakes, hail and tornadoes “will pay more,” Kerr observes.
|Rates for auto insurance were up 2 percent in March, compared toMarch 2012.
|Kerr says lower premiums in this line are driven by the fact somany insurers are competing for mono-line auto.
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