The composite rate for all personal lines coverages rose 5.2% in the fourth quarter of 2022, a rate of increase which stayed steady most of the year, according to a new report from MarketScout.
Homes under $1 million in coverage A value were up 7% in the fourth quarter, while homes over $1 million were up 7.3%.
“We constantly remind our subscribers that the composite rate for homeowners includes homes in all geographic regions,” said Richard Kerr, founder of MarketScout and CEO of Novatae Risk Group. “Catastrophe-prone areas, such as wildfire zones in California and wind-exposed Florida locations, are being assessed higher rate increases, sometimes as much as 30% to 40%. Reforms recently enacted by the Florida legislature may help moderate rate increases for all homes in Florida, but any home which is wind-exposed will still experience rate increases.”
Auto insurance rates also trended higher, with the Q4 composite seeing a 5% increase, MarketScout reported.
Personal articles, jewelry and fine art rates have also been increasing steadily, albeit at a moderate pace. The increase in Q4 was 4%.
In Q3, the personal lines composite rate rose 4.58% annually.
Read next: What’s happening with P&C rates in the US?
See below for a summary of average annual rate increases for personal lines.
- Homeowners (under $1 million): up 7%
- Homeowners (over $1 million): up 7.3%
- Auto: up 5%
- Personal articles: up 4%
MarketScout is an insurance distribution and underwriting company based in Dallas. It was acquired by Novatae Risk Group in November.
Have something to say about this story? Let us know in the comments below.
