US personal and commercial line rate rises slowed in the June quarter, gaining 4.6% and 2.8% respectively, analyst MarketScout says.

In the preceding quarter, personal line rates rose 4.9% and commercial 3%.

MarketScout says most homeowners had smaller increases than in the first quarter. Homes in the $US1 million and above category had the steepest rises, averaging 6.7%.

The pricing environment for insureds is expected to worsen, according to Novatae, the wholesale insurance broker that owns MarketScout.

“We have just now entered hurricane season, so for those owning homes in coastal areas, expect homeowners’ rates to go up, not down,” Novatae CEO Richard Kerr said.

In the commercial lines space, motor had the biggest rate increase, at 6.7% in the June quarter. Umbrella/excess placed second (5%), followed by general liability (3.7%) and property (3.6%).

“Automobile and umbrella insurance continue to experience moderate increases, but even these lines are down from the first quarter,” Mr Kerr said.

“We are also seeing steady improvement in property insurance rates, which is encouraging for insurance buyers.”