Composite rate rises for personal lines insurance in the United States slowed slightly in the second quarter, but an industry expert warns the real test looms with the upcoming wind and wildfire seasons. 

A MarketScout analysis shows the personal lines composite rate increase slowed from 5% in the first quarter 2023 to 4.4% in the second quarter 2023.  

“Insurers were feeling pretty good in the second quarter,” MarketScout and Novate Risk Group CEO Richard Kerr says. 

“The real challenge, however, will be to get through wind and wildfire seasons without catastrophic losses. We must all wait to see how things fare over the next four or five months.” 

In the second quarter premium trends showed an increase of 4.3% for homeowners under $1USmillion ($1.49), 5.7% for homeowners over $1USmillion, 4.7% for cars and 3% for personal articles. 

MarketScout uses National Alliance for Insurance Education and Research price surveys in its analysis.