The personal lines market in the U.S. was stable in October. Rates increased modestly at plus 3 percent, about same as in September, according to a barometer compiled by online insurance broker MarketScout.
Homeowners insurance for properties valued over $1 million was more competitive at a rate adjustment of plus 2 percent compared to homes under $1 million in value that were up plus 4 percent.
“October was a stable month; however, we will start to see rate impacts from Superstorm Sandy in November,” said Richard Kerr, CEO of MarketScout, the Dallas, Texas based insurance exchange. “Many of the flood claims will be paid by the National Flood Insurance Plan (NFIP) but some insurers did provide excess flood coverage. And, of course, there will be wind and fire claims.. The property and loss of use claims are already rolling in. Couple this with the auto claims and Sandy may have a notable impact on rates for personal insurance, particularly in the Northeast.”
MarketScout’s summary of the October personal lines rates shows:
- Homeowners under $1,000,000 value Up 3%
- Homeowners over $1,000,000 value Up 2%
- Automobile Up 3%
- Personal Articles Up 3%