MarketScout: Q1 Composite Personal Lines Rates Up 4.9%; Commercial Rates Up 3%

According to the MarketScout Market Barometer, the composite rate for U.S. personal lines kept rising in the first quarter to 4.9%, up from 4% during the prior three-month period.

Richard Kerr, CEO of Novatae Risk Group, said the increase was likely due to the “lingering impact of recent California wildfires.”

“It often takes time for the market to respond to catastrophic events,” he said. “Rates are now trending upward and could rise further as we head into hurricane season.”

For the last quarter of 2024, the composite rate for personal lines went up 4%, and the increase was about 5.8% for all of 2024–the highest yearly jump in a dozen years, according to MarketScout, a division of Novatae Risk Group.

Homeowners insurance led the Q1 increases, especially high-net-worth homes. Homes valued at more than $1 million increased 7.3%.

Meanwhile in commercial lines, the composite rate increased 3% in Q1. The commercial composite rate increased about 2.6% in Q4 2024.

“Umbrella and excess liability, along with automobile coverages, saw the most significant rate hikes this quarter–both increasing by 6.7%,” Kerr said.

Marketscout said transportation companies saw the highest Q1 2025 increase, at 6%.

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