December 16, 2011
By: Bruce Berry
A recent report found that many commercial and business insurance firms may be increasing rates in the near future to deal with reduced profits.
Earlier this month, one insurance company told The Wall Street Journal that it had raised rates by more than 5 percent in October and November, which were its largest hikes in years. The trend is one that is spreading across the commercial insurance market, according to the paper.
Experts said that the rising prices at some companies have been the result of a combination of factors, such as poor investment performance and the large number of severe natural disasters in the U.S. this past year.
"The industry is in tough shape," said insurance executive Bill Berkley at a recent conference, reported the Journal. "By and large the industry isn't making profits."
One of the most devastating natural disasters this past year was Hurricane Irene - one of 12 U.S. weather events which caused more than $1 billion in damage this year. The storm was linked to $7.3 billion in overall damages and costs.
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