Property and casualty insurance rates are on the rise, but reports released in late July through August seem unsure of whether the pricing trend will build into sustained underwriting profits during a period of rising loss costs and low investment returns.

Hedge fund heavyweight David Einhorn's reinsurance business, Greenlight Capital Re Ltd, on Tuesday warned that other insurers were making "irrational" deals in Florida in the face of heavy competition.

Insurers may not be able to control the frequency of catastrophes, but they can certainly control their losses through better claims managementand ultimately, through better underwriting methodologies.