Any forthcoming price increases for the property-casualty commercial insurance industry will be short-lived, but personal lines rates will continue upward, according to a financial analyst.
Meyer Shields, with Stifel Nicolaus, said that while companies were heralding the rise of prices for commercial accounts during their third-quarter financial results, absent was any discussion of how long price increase will last and what the magnitude of those increases will be.
According to his analysis any price increases will not be long-term because competition for new business will remain intense. Price increases now will create excess profits once the financial markets settle down and that, in turn, will reignite the soft market.
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