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Insurance analysts say modest rate increases for property and casualty risks will extend into 2013, as the overall economic environment is not expected to change dramatically in the coming year.

In a research note, Keefe, Bruyette & Woods says the P&C insurance market environment is expected “to be pretty much the same as what we’ve seen in 2012—modest rate increases but not much improvement in underlying underwriting profitability and persistent low interest rates that continue to weaken investment returns.”

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