US commercial and personal lines rates increased in the first quarter, according to analyst MarketScout.

The composite rate for commercial lines gained 3% after rising 2.64% in the December quarter. Umbrella and excess liability, and motor cover had the most significant rises, at 6.7%.

The US personal lines composite rate rose 4.9% following a 4% lift in the preceding quarter.

Homeowners insurance led the surge, driven by high-value properties. Policies for homes valued above $US1 million ($1.67 million) rose 7.3%, while those below $US1 million increased 4%.

MarketScout, owned by wholesale insurance broker Novatae, says the higher rates are probably due to the California wildfires.

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