NU Online News Service, March 12, 1:29 p.m.EST

Commercial lines insurance rates rose 3 percent in the 2011fourth quarter, according to a Towers Watson survey, providingfurther evidence that the years of soft-market momentum may bereversing course.

In a summary of the results of its CLIPS survey (CommercialLines Insurance Pricing Survey), Towers Watson says survey resultsindicate a progressive rise in rates throughout 2011.

The quarterly survey, conducted since the 2003 secondquarter, indicates insurance pricing has been in soft-marketdecline since the 2004 third quarter, with slight positive growthin the 2009 second quarter.

Last year was the first year pricing has shown continued upwardmovement for more than a quarter since 2004, according to TowersWatson figures.

“While modest, aggregate increases in prices continued, and moreimportantly, these increases accelerated in each quarter of 2011,”says Thomas Hettinger, property and casualty sales and practiceleader for the Americas at Towers Watson in a statement. “We arenow at a point where we can call the pricing turn in themarket.”

Towers Watson says specialty lines as a whole were flat anddirectors and officers liability pricing showed signs ofstabilizing.

Commercial property and workers' comp grew in the 4 to 6 percentrange, the spokesman says, and workers' comp had the largestincrease by line during the fourth quarter.

Towers Watson went on to say that historical loss-costinformation reported by participating carriers points to 3 percentdeterioration in loss ratios in accident year 2011 compared to2010.

“This indication is more favorable than the estimated level of 5percent deterioration for the accident year 2010 loss ratio over2009, as earned price increases are beginning to offset portions ofreported claim-cost inflation,” the firm says.

The survey was conducted between mid-January and mid-February. Atotal of 41 insurers representing approximately 20 percent of theinsurance market participated in this quarter's survey.

Full survey results are only available to participants, aspokesman says.