Insurance analysts say modest rate increases for property andcasualty risks will extend into 2013, as the overall economicenvironment is not expected to change dramatically in the comingyear.

In a research note, Keefe, Bruyette & Woods says theP&C insurance market environment is expected “to be pretty muchthe same as what we've seen in 2012—modest rate increases but notmuch improvement in underlying underwriting profitability andpersistent low interest rates that continue to weaken investmentreturns.”

In its “Nine Month 2012 P&C Industry Review,” ALIRTInsurance Research, LLC, says it expects “gentle premiumincreases,” but notes there are factors at play that “may wellmoderate price increases going forward.”

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