US personal lines rates stabilised in the second quarter of 2022 with rate increases of plus 5.16%, according to analysts at MarketScout.
This percentage almost mirrors the 5.2% increase in the first quarter of 2022, MarketScout noted.
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 jewellery, analysts explained.
According to Richard Kerr, CEO of MarketScout, significant rate increases for all lines of personal insurance are expected to continue in areas affected by catastrophes.
He commented: “We believe alternative solutions will be developed to provide additional capacity in Florida and California.
“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.”
In this market, average rates for homeowners under $1,000,000 value went up 5% while for homeowners over $1,000,000 value went up 7.3%.
At the same time, automobile rates went up 3.7% and personal articles up 4.7%.
