After bearing the effects of a sluggish economy and substantial weather-related losses in 2011, carriers are well aware that they need to increase rates in order to balance their books.

Yet the question then becomes, can they raise rates substantially enough to cover their losses and offset low investment yields?

In a speech at the Council of Insurance Agents & Brokers meeting in October in Colorado Springs, Colo., Paul Krump, president of commercial specialty lines for Chubb Group of Insurance Cos., said the current reality for carriers is a “corrosive” situation that needs to be addressed as underwriters seek to balance business with policyholders’ concerns.

“We must not lose sight of our primary mission—to take care of our customers; but we must also take care of ourselves,” Krump said.

Travelers Chairman/CEO Jay Fishman recently told fnancial analysts the company has stepped up efforts to raise rates, and its competitive advantage will help make those increases stick.

“We are seeking improved pricing as well as terms and conditions on the insurance products we sell,” said Fishman. “We are doing so not only because interest rates may remain low for some time, but also given the possibility that the more active weather patterns, such as we have experienced over the past few years, may continue.”

William R. Berkley was more succinct in his evaluation of the markets: “The visibility of a cycle change is even more evident. We believe that price increases and premium-volume growth will continue.”

Speaking to financial analysts, Ace Ltd. CEO Evan Greenberg said the insurer is seeing “positive” rate increases, but it remains to be seen whether the trend will continue. “Pricing overall continues to firm,” he noted, as “more classes achieve positive rate while rate decreases [are] smaller.”

“We are cautiously optimistic about market trends,” Costas Miranthis, president and CEO of PartnerRe, said in a statement. “We are beginning to see price increases in many lines, particularly short-tail lines, as well as increased demand for reinsurance.”

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Carriers Say They&rsquo;re Pushing Rate

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Carriers Say They’re Pushing Rate