Late-Season Hurricanes Expected to Further Influence Future Rates
The personal lines composite rate has increased by 6.75% in the third quarter of 2024, signaling a slight moderation compared to the previous quarter’s figures. However, the full impact of recent catastrophic events, such as Hurricane Helene, has yet to be reflected, and with Hurricane Milton poised to make landfall, further rate hikes are anticipated.
“We have always observed a microclimate environment in personal insurance pricing,” says Richard Kerr, CEO of Novatae. “As of this writing, Hurricane Milton is projected to come ashore near Tampa, Florida, as a strong Category 3 storm. Should this occur, the ramifications for Florida’s personal lines insurance market will be substantial. While these effects will have some influence on the national composite rate, Florida-specific rates will see considerably sharper increases.”
The current composite rate hike underscores the resilience of the insurance industry in responding to evolving risks but raises questions about future stability, particularly in regions prone to extreme weather events.
Risk & Insurance Education Alliance 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 third quarter 2024 personal lines rates is set forth below. |
| Personal Lines | |
| Homeowners under $1,000,000 value | Up 7% |
| Homeowners over $1,000,000 value | Up 8% |
| Automobile | Up 8.7% |
| Personal Articles | Up 4% |
Source: MarketScout, a Division of Novatae Risk Group
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