Rate rises on US personal and commercial lines flattened in an uneventful market last month, insurance exchange MarketScout says.

After four months of 5% increases, property and casualty rates grew 4%. Rate rises for commercial auto, workers’ compensation, directors’ and officers’ liability and employment practices liability also slowed by 1% compared with June.

Commercial property, general liability, commercial auto and workers’ compensation all grew 5%, while directors’ and officers’ liability and employment practices liability increased 4%. 

Fiduciary growth rates were up slightly from 2% to 3%.

MarketScout CEO Richard Kerr says with many underwriters, insurers and brokers on leave last month and no catastrophes, “it’s natural to see the market drift downward”.

“We will have a much better feel for where things are headed once the results are tabulated for September and October,” he said.

Personal lines rates grew 3% last month compared with 4% in June.

Rates for homes worth less than $US1 million ($1.1 million) increased 4%, while those for homes worth more than $US1 million were up 3%. Auto insurance increased 3% and personal effects cover rose 1%.

Mr Kerr says it is shaping to be a good year for US personal lines insurers.

“Of course, we have the wind season upon us, followed by possible brush fires in the west or even an earthquake at any time, so the possibility of catastrophic events still looms on the horizon.

“However, if there are no huge storms or brush fires by late October, this could end up a good year… if so, rates will adjust down a bit.”