According to the MarketScout Market Barometer, the composite rate for U.S. personal lines increased about 5.8% in 2024 — the highest yearly jump in a dozen years.

For the last quarter of 2024, the composite rate went up 4%, said Dallas-based MarketScout, a division of Novatae Risk Group.

Richard Kerr, CEO of Novatae, said Hurricanes Helen and Milton caused less insured damage than anticipated, and pricing for homeowners insurance fell slightly in Q4. But the composite rate was up at least 5% for auto insurance and home valued at about $1 million.

“The Q4 rate moderation is a welcome shift, but 2024 still marked a composite rate increase at 5.79%. We’ll monitor how this evolves in 2025,” Kerr said.

Meanwhile in commercial lines, the composite rate increased about 2.6% in Q4 and 3.75% for 2024, which was down from about 4.6% in 2023.

“Commercial insurance rates have been on a roller coaster since 2001,” Kerr added on commercial lines. “While recent years have seen steady increases, intermediaries must prepare for an eventual market shift.”

MarketScout reported property rates are down due to increased capacity and fewer insured catastrophic events. Umbrella/excess liability and automobile rates continue to rise, but professional liability rates are stabilizing.

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