CONNING PREDICTS RATES HIKES

A recent Conning & Company study, “Property-Casualty Forecast and Analysis,” showed personal automobile rates on the rise by 4 to 8 percent. In some areas, recent filings may bring the increase up to 16 percent, especially for nonstandard automobile coverages. Homeowner insurance premiums also are expected to increase by 6.9 percent in 2002. However, the study warned that despite a rise in premiums across all property/casualty lines, insurers will still be challenged to achieve profitability due to competition, escalating losses, increased expenses and a slowing economy. For all p/c lines combined, Conning projects a marginal improvement in the combined ratios for 2001 and 2002, with commercial lines likely to see greater improvement sooner than personal lines.