According to the MarketScout Market Barometer, the composite rate for U.S. personal lines increased in the second quarter by 4.6% compared to 4.9% during the first quarter.
Dallas-based MarketScout, a division of Novatae Risk Group, said high-net-worth homes valued over $1 million saw the largest hikes of 6.7% during the second quarter.
“We have just now entered hurricane season, so for those owning homes in coastal areas, expect homeowners’ rates to go up, not down,” said Richard Kerr, CEO of Novatae Risk Group, in a statement. “Agents should advise their clients in coastal areas to renew their insurance between January and March, as rates are often much more favorable during those months.”
Personal auto insurance rates increased 5.7% on average in Q2, added MarketScout.
Switching to commercial lines, the composite rate increased 2.8% in Q2, remaining fairly steady from the average increase of 3% during Q1 2025.
Like Q1, commercial auto rates went up 6.7% to lead all coverage classes during Q2. Umbrella and excess liability came in at up 5%, an improvement over average increases of 6.7% in Q1. General liability saw rates go up an average 3.7% in Q2 compared to up 2.3% in Q1.
Commercial property was up 3.6% in Q2–the same result as Q1. Kerr said the distribution and underwriting company is “seeing steady improvement in property insurance rates, which is encouraging for insurance buyers.”
Other Findings
In earlier reports, commercial lines premiums also trended up during the first quarter of 2025 but at a slower pace than previous quarters.
In early June, The Council of Insurance Agents & Brokers (CIAB) quarterly survey found that commercial property/casualty premiums across all account sizes rose by 4.2% in Q1 2025, down 22% from the last three months of 2024. The CIAB noted at the time that the trend marked a “clear” signal of soft market conditions.
In mid-June, WTW’s Commercial Lines Insurance Pricing Survey (CLIPS) showed that U.S. commercial insurance rates went up by 5.2% in Q1 2025, down from increases of 5.6% and 6.1% for the fourth and third quarters of 2024.
Topics Trends Commercial Lines Pricing Trends
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