CAT season on the cusp, however
US Personal lines rate increases for the second quarter of 2022 were plus 5.16 percent, almost mirroring the 5.2 percent increase in the first quarter 2022.
Insureds in the US are experiencing rate increases partly as a result of inflation on home and auto repair, as well as the increased value of fine art, collectibles and jewelry.
Richard Kerr, CEO of MarketScout noted, “The Council for Insuring Private Clients gathered in May 2022 with over 250 personal lines professionals sharing information and ideas. The consensus was to expect continued significant rate increases for all lines of personal insurance in areas affected by CAT perils.” “We believe alternative solutions will be developed to provide additional capacity in Florida and California,” added Kerr. “Premium increases and coverage restrictions will drive these new solutions. Forty to fifty percent rate increases are not unusual in CAT prone areas of Florida and California.”
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 second quarter 2022 personal lines rates is set forth below.|
|Homeowners under $1,000,000 value||Up 5%|
|Homeowners over $1,000,000 value||Up 7.3%|
|Personal Articles||Up 4.7%|
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