Personal Lines Insurance Prices Inched Up in April

May 9, 2016

Auto and home insurance buyers in the U.S. paid slightly more for their insurance in April compared to the prior six months.

It’s not clear whether a pricing trend is starting or catastrophe losses drove a temporary price change, according to Richard Kerr, CEO of MarketScout, which reports monthly on property/casualty insurance rates.

Rates for homes below $1 million value increased to plus 1 percent compared to being flat the month before. Rates for homes more than $1 million in value remained flat, the MarketScout index reported.

Automobile rates increased 1 percent as measured against the month before.

Personal articles rates also increased 1 percent, MarketScout found in its survey.

“The trend for price decreases in the personal lines market reversed in April. Perhaps the increasing flood and hailstorm losses had an impact or perhaps it is just an aberration. We will know more over the next few months,” Kerr said.

Insurers have been reporting higher catastrophe losses along with reduced investment income.

The National Alliance for Insurance Education and Research conducts the pricing surveys used in MarketScout’s analysis of market conditions.

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