Property/casualty insurers' reserve adequacy and enterprise risk management are concerns in light of rising catastrophe losses, says Anthony Diodato of A.M. Best. The industry also has dealt with a challenging economy and low interest rates, "which could not provide an offset if there were underwriting losses," Diodato said. However, he said, "We still continue to see companies take that incremental rate increase that will help bring that risk and that rate to the same level, which will add value when the company's financial strength is evaluated."

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