Rates for commercial insurance and personal lines placements across the United States have increased by 4.5% and 5%, respectively, during the fourth quarter of 2019. The steady trend of upward rate movement for US commercial insurance is thought to reflect insurers’ plans to continue increasing prices across almost all lines of coverage. Auto rate increases have been up all of 2019; however, D&O and professional rate increases have spiked significantly in the fourth quarter.
What to Expect
Many insurers are utilizing the many catastrophe modeling tools to carefully analyze their property exposures. It is expected that most major property catastrophe insurers will curtail their 2020 writings in California brush and East and Gulf Coast wind areas. Naturally, this will result in higher rates to insureds.
While in personal lines, it is believed that the hardening market has most severely impacted high net worth individuals because of their propensity to own properties in catastrophe-prone areas.
For some catastrophe-exposed homes, rates may have increased by as much as 35% in the fourth quarter.
Certain membership organizations such as the Council for Insuring Private Clients are coming up with creative solutions to help insureds mitigate the impact of rate increases.
We must all keep in mind, the barometer results include all types of personal lines insurance across the US. Massive placements for homes/autos/jewelry in the $300,000 to $800,000 value which are in non-cat prone areas impact the rate. If we were to measure homes over $5,000,000 in brush exposed areas of California, the average rate increase would be over 35 percent.
It is in your best interest to partner with an insurance wholesaler who has the ability to access markets and negotiate beneficial terms and rates for clients on your behalf while at the same time ensuring that, together, everyone benefits.
Amsuisse provides a responsive quote turnaround and marketing support – all aligned to help mitigate and safeguard clients against risk while growing businesses profitably.
With strong underwriting support, strong marketing support, and responsive proposals and quotes, we can make a huge difference. Financial stability and growth in the products offered to you will directly and significantly impact your success.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (855) 912-8697 to speak with one of our representatives.