While three separate analyses of the insurance and reinsurance markets in 2012 were unable to determine whether the industry will be able to sustain recent rate increases, all agree that the industry will face challenges this year ranging from the economy to the implementation of new regulations.
In a Jan. 9 outlook on personal-lines and commercial-lines insurers, ratings agency A.M. Best says the personal-lines segment continues its solid performance, with Auto exhibiting “adequate and stable returns.”
But Best notes that personal-property lines are extremely volatile “due to the effects of continued weather-related losses.”
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