Personal-lines insurers priced risks a bit more competitively in April, with rates climbing by 3 percent year-over-year compared to 4 percent in March, according to MarketScout's latest market barometer.
MarketScout CEO Richard Kerr speculates that the typically low level of claims in April may have had a psychological impact on insurers, causing them to ease up some on pricing. He says, "April traditionally is a good month for personal-lines insurers because the spring storms have not yet hit, thereby avoiding tornado and hail claims, and flooding usually occurs a bit later in the year. Normally there are no hurricanes or brush fires; however, there was a small brush fire underway a few days ago which has since diminished."
He adds, "Perhaps the psychology of lower filed claims and the time passing since Super Storm Sandy had some impact on insurers pricing."
The steepest increases were seen in homeowners rates for homes valued over $1 million. Such properties saw 4 percent increases on average. Homeowners under $1 million, personal auto and personal articles all saw 3 percent increases compared to April 2012.
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