Insurance companies fared better than expected in 2023: MarketScout

According to recent analysis from MarketScout, the composite rate increase for personal lines insurance across the United States was plus 4.75% for Q4 2023.

The analysis states that insurers made it through 2023 better than expected, with a composite rate increase of 4.61% when examining the full 2023 year.

Richard Kerr, Chief Executive Officer, Novatae Risk Group, commented, “We continue to see the largest composite rate increases in homes over $1,000,000 in coverage A value, most likely because this includes all of the large homes in catastrophe-exposed locations.

“While the composite rate for large homes was 5.9% for 2023, some homeowners in tough areas or with prior losses are experiencing rate increases as high as 50%.”

For homes under $1,000,000 in coverage, A value averaged a rate increase of 4.32% for 2023. Meanwhile, homeowners with over $1,000,000 value saw an increase of 6.7%.

In the auto insurance segment, rates were up 5% and for personal articles up 3%, reports MarketScout.

MarketScout’s analysis of market conditions is based on the pricing surveys conducted by The National Alliance for Insurance Education and Research conducted pricing surveys.

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