The hurricane season’s onset means US insurance rates will likely continue their first-half upward trend, analyst MarketScout says.

Property and casualty rates were up 1% in the second quarter, while personal lines composite rates were up 2.5% compared with the corresponding period last year.

MarketScout CEO Richard Kerr says storm activity will affect rates for the next two quarters.

“So far this year, inland wind and hail claims have been quite significant,” he said.

He says personal motor losses are increasing, making rate rises likely. Motor rates were up 4% in the second quarter compared with 3% in the first quarter.

Homeowners’ policies with coverage below $US1 million ($1.31 million) moderated slightly, up 2% in the second quarter compared with 3% in the first quarter.

By coverage class, commercial property and inland marine adjusted to up 1% from down 1% in the first quarter. Fiduciary adjusted downward to flat from up 1%. All other coverage classifications were unchanged from the first quarter.

By industry class, public entity rates moderated to flat from up 1%. Transportation risks were up 4% compared with 5% in the first quarter.

The composite rate is an amalgamation of rates and exposures across the US, meaning rates vary based upon exposure and recent loss experience.