Personal insurance rates have gone up by 2% so far this year, while commercial P&C rates have remained generally stagnant, indicating that the industry will have to continue preparing for a soft market.
The combined average of personal insurance rates went up the same amount in January as it did in December of last year, according to a study from the National Alliance for Insurance Education and Research in conjunction with MarketScout.
Richard Kerr, CEO of MarketScout said the rates were reflective of a "good year" that had few natural disasters.
"As a result, rates are holding steady," he said.
Generally, homeowners insurance policies under $1 million in value went up by 3%, while policies over $1 million went up by 2%. The same increase was seen in automobile insurance, according to the report. There was a 1% increase for personal articles.
But commercial insurance rates remained fairly flat, with only a few sectors of P&C insurance going up by 1%, such as commercial property, general liability, commercial auto and professional liability. Employment practices liability insurance was up by 1%, but that's an increase from it being down 2% in December of last year.
All of this points to a continuing soft market for insurers.
"There are differing views on how long and deep this pending soft market cycle may last," said Kerr. "However, few insurers are projecting rate increases."
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