The composite rates for both commercial and personal lines rose in the third quarter, according to new data from MarketScout.
The commercial market composite rate rose 5.28% in Q3.
“We are seeing softening in the D&O/professional sector as additional markets expand available capacity,” said Richard Kerr, CEO of MarketScout. “Cyber rates are still increasing significantly despite additional security.”
Property rates rose 7.67% in the third quarter, MarketScout reported.
“Losses from Hurricane Ian will significantly impact rates in Florida and other wind-exposed coastal states,” Kerr said.
Rate change by coverage class
Rate change by industry class
Read next: Hurricane Ian: Loss tally continues
The US personal lines composite rate rose 4.58% over the same period last year, MarketScout reported.
“High-value homes are experiencing more aggressive rate increases,” Kerr said. “This is largely because, on a composite national basis, more high-value homes are located in catastrophe-prone areas of the US, which naturally are assessed higher rates.”
Kerr said that Hurricane Ian would impact personal lines as it had commercial lines.
“Hurricane Ian is going to be a huge loss for insurers covering properties in Florida,” he said. “Excluding coverage for flood and storm surge, estimates are from $25 to $45 billion. Including flood claims, the total will most likely surpass $100 billion. Rates will be up dramatically in Florida for the foreseeable future.”
Personal lines rate changes
