Large Rate Increases Continue for Cat-Exposed Homes
Insurance companies made it through 2023 better than expected. The composite rate increase for personal lines insurance across the US was plus 4.75% for the fourth quarter and plus 4.61% when examining the entire 2023 year.
“We continue to see the largest composite rate increases in homes over $1,000,000 in coverage A value, most likely because this includes all of the large homes in catastrophe exposed locations,” noted Richard Kerr, CEO of Novatae Risk Group. “While the composite rate for large homes was 5.9% for 2023, some homeowners in tough areas or with prior losses are experiencing rate increases as high as 50%.”
Homes under $1,000,000 in coverage A value averaged a rate increase of 4.32% for 2023. Auto insurance came in at 5% and personal articles 3%.
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.
| A summary of the fourth quarter 2023 personal lines rates is set forth below. |
| Personal Lines | |
| Homeowners under $1,000,000 value | Up 4.3% |
| Homeowners over $1,000,000 value | Up 6.7% |
| Automobile | Up 5% |
| Personal Articles | Up 3% |
Source: MarketScout
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