Rates in US personal lines were up 1% last month and steeper rises are in store, according to analyst MarketScout.

“Personal lines insurers have been pummelled with hail, flood, and tornado claims,” CEO Richard Kerr said. “This is not a particularly good start to the year and many insurers are concerned about additional losses in the remaining seven months.

“The rate adjustments could be more severe, but insurers are concerned with losing business to new market entrants that are buying their way into the market.

“Despite competition from multiple insurers, if the storm trend continues we could see homeowners’ rate increases in excess of 5% in areas such as Texas and Oklahoma.”

US commercial rates fell 2% last month, in line with the decline recorded in April.

“As we have seen in the past, larger-premium accounts were priced more aggressively,” Mr Kerr said.

Professional liability was down 3% last month, commercial property fell 2%, business interruption was down 1% and commercial motor was flat.