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.

The Council of Insurance Agents & Brokers' fourth-quarter survey of member insurance brokers, released Jan. 24, showed that prices rose 2.8 percent compared to -5.4 percent for Q4 2010.

“The market continued its upward momentum in the fourth quarter,” says Ken A. Crerar, the Council's president and CEO. “Capacity was still strong, but prices rose in the face of declining underwriting profitability, dwindling reserves and huge [catastrophe] losses.”

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