Earnings pressure may push commercial rates up 10%, analyst says

01/22/2012 | PropertyCasualty360

Commercial insurance rates could increase by as much as 10% by the middle of the year because of factors including catastrophe losses, revisions to catastrophe models, and mergers and acquisitions, according to Meyer Shields, an analyst with Stifel Nicolaus. Although rates in the commercial lines started to rise or remained unchanged in the fourth quarter, such improvement "shouldn't benefit carriers' underwriting margins yet, as loss-cost inflation is still outpacing rate increases," Shields said.

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