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While Rates Should Increase in 2012, Growth Will Prove Challenging

Anumber of recent reports conclude that commercial-insurance rates were up in 2011s fourth quarter and are likely to remain in positive territory through 2012. But factors such as macro-economic conditions and loss-cost trends will limit insurers ability to generate underwriting profits, and carriers will have to look elsewherefor example, mergers...

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Anumber of recent reports conclude that commercial-insurance rates were up in 2011’s fourth quarter and are likely to remain in positive territory through 2012. But factors such as macro-economic conditions and loss-cost trends will limit insurers’ ability to generate underwriting profits, and carriers will have to look elsewhere—for example, mergers and acquisitions or launching new products—to achieve growth for the year.

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