Homeowners and automobile insurance rates are trending up, according to a new industry survey.
The composite rate for insuring personal lines business in the United States increased to plus 4 percent for November 2012 as compared to November 2011, says Marketscout’s Personal Lines Rate Barometer.
Homeowners coverage for placements under $1 million were up 4 percent in November 2012 while homes over $1 million were up 5 percent for the same time period. Automobile and personal articles were up 3 percent, the barometer revealed.
“Homeowners placements for homes over $1 million, the ‘high-net-worth’ market, made a dramatic move in November,” said Richard Kerr, CEO of MarketScout. “Rates moved up from plus 2 percent in October to plus 5 percent in November. That is the largest month-on-month rate increase we have seen in the 11 years we have been tracking rates in the U.S.”
Kerr says that it appears high value home insurers are adjusting rates upward to account for increased exposure to weather related events. “And some of the accounts are now being forced into the non-admitted market where rates are higher and coverages are frequently restricted,” he said.
The National Alliance for Insurance Education and Research conducted pricing surveys used in MarketScout’s analysis of market conditions. These surveys help to further corroborate MarketScout’s actual findings, mathematically driven by new and renewal placements across the United States.
Here’s a summary of the November 2012 personal lines rates, according to Marketscout:
|Homeowners under $1,000,000 value||Up 4%|
|Homeowners over $1,000,000 value||Up 5%|
|Personal Articles||Up 3%|