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Member, Beacon International Group, Ltd.
On average, U.S personal lines insurance rates rose 3% in May, according to a report released this week by Dallas-based MarketScout.
There was some variation within lines. Rates for homeowners policies for homes valued at under $1 million rose 4%, while rates for more expensive dwellings rose 3%. Personal auto rates rose 3% as well, but personal articles rates rose only 1%, according to MarketScout.
“Large, admitted insurers control the vast majority of the U.S. personal lines market,” said MarketScout CEO Richard Kerr in a statement discussing the May figures.
“Because of their size and ability to withstand market trends, the large insurers don't normally respond to unfounded price aberrations in any given market,” he said. “A strong balance sheet enables these insurers to stick to their guns on a long-term basis.”
He added, though, that smaller insurers “will vary pricing almost monthly, as permitted by respective state insurance regulations. Regardless, the volume of the larger insurers has a significant impact on the U.S. personal lines composite rate. Thus, the reason for another month of steady results at plus 3%.”