The composite rate for U.S. personal lines was up 3% for October, according to the MarketScout insurance exchange.

Homeowners insurance in the U.S. increased an aggregate of 3% in October 2014, regardless of home value. Automobile rates remained steady from September, at +2%, and Personal Article rates did the same at +1%.

Personal Lines insurers are going to have a good 2014 “despite a large number of micro storms, which resulted in notable claims activities,” MarketScout CEO Richard Kerr said in a statement. “Rates should remain stable and actually adjust downward a bit more by year end.”

Commercial Rate Picture

According to MarketScout, the composite rate for U.S. Commercial insurance was +1% in October 2014.

That's essentially in line with September, with the exception of Commercial Auto and Professional Liability coverages—which were both up one percentage point from the prior month, coming in at +3% and +2%, respectively. On the flip side, Property and Workers' Comp rates both fell by one percentage point in October.

“As expected, the U.S. composite commercial rate continues its slow slide,” says Kerr. “We are almost completely past hurricane season, so we expect continued pressure on Property rates.” Workers' Compensation rates are also down from last month, he notes; however, a few large insurers could be facing some challenges on their comp books. If so, he adds, “this could moderate the slide in WC premiums.”

By account size, only small accounts (up to $25,000) changed from the prior month as they decreased one percentage point to +2%. Medium ($25,001 to $250,000) and large ($250,001 to $1 million) accounts are unchanged at +2% and +1%, respectively. Accounts greater than $1 million remain flat.

Broken down by industry, Contracting, Service and Transportation were all down one percentage point in October from the month prior, and nearly all of the other industries MarketScout tracks remained unchanged. Manufacturing and Energy lines were the lone exceptions, both rising one percentage point to +2%.

Special Reports /

Personal Lines Rates Up 3%, but Some Commercial Markets Continue to Slip

Related Stories

Recommended For You