Rate increases moderated in the fourth quarter. (Credit: ALM)

According to the MarketScout Market Barometer, the composite rate for U.S. personal lines was up 5.79% in 2024, the highest annual increase in 12 years.

In the last quarter of 2024, however, the composite rate was up just 4%, suggesting increases could be slowing.

Richard Kerr, CEO of Novatae Risk Group, which owns MarketScout, said Hurricanes Helene and Milton didn’t cause as much insured damage as anticipated, which reduced homeowners’ pricing in Q4. Automobile rates continued to climb.

Q4 personal lines rate increases were as follows:

  • Homeowners under $1 million value: Up 3.3%
  • Homeowners over $1 million value: Up 5%
  • Automobile: Up 5.3%
  • Personal articles: Up 2.3%
“The Q4 rate moderation is a welcome shift, but 2024 still marked a composite rate increase at 5.79%,” Kerr said in a statement. “We’ll monitor how this evolves in 2025.”

On the commercial lines side, U.S. composite rates were up 3.75% in 2024, continuing the trend of steady increase that began in 2017.

But that number is down from a 4.56% increase in 2023, and Kerr warned that increases likely won’t last forever. “Commercial insurance rates have been on a roller coaster since 2001,” he said. “While recent years have seen steady increases, intermediaries must prepare for an eventual market shift.”

In the fourth quarter, the composite rate increased by 2.64%. Property rates are decelerating due to increased capacity and fewer insured catastrophic events, Kerr said. Professional liability rates are stabilizing, while umbrella/excess liability and automobile rates are on the rise.

Q4 commercial lines rate increases were as follows:

  • Commercial property: Up 3.3%
  • Business interruption: Up 3.3%
  • BOP: Up 3.3%
  • Inland marine: Up 3%
  • General liability: Up 3.7%
  • Umbrella/excess: Up 3.7%
  • Commercial auto: Up 6.7%
  • Workers’ compensation: Flat 0%
  • Professional liability: Up 1%
  • D&O liability: Up 1.3%
  • EPLI: Up 1%
  • Fiduciary: Up 1%
  • Crime: Up 1%
  • Surety: Up 1%
  • Cyber: Up 2.7%
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