U.S. commercial P&C rates up by 2.8% in 2011 Q4

Commercial property and casualty pricing in the United States increased by an average 2.8% in 2011 Q4, according to The Council of Insurance Agents & Brokers’ quarterly Commercial P/C Market Index Survey.
On average, small, medium and large account pricing increased 2.8% last quarter, compared to a 5.4% price decline over the same period last year.
Rates for small commercial accounts increased by an average of 3.1% in 2011 Q4. Medium commercial accounts increased by 3.5% and rates for large accounts went up by 1.8%
“It’s clear from the data that the market continued its upward momentum in the fourth quarter,” said Council president and CEO Ken A. Crerar. “Capacity was still strong, but prices rose in the face of declining underwriting profitability, dwindling reserves and huge catastrophic losses.”
Brokers surveyed by the Council said carriers were getting tougher on underwriting and paying closer attention to loss experience.