NU Online News Service, Jan. 20, 11:42 a.m. EST

Rate increases for 2012 could head as high as 10 percent if a handful of negative pressures continue to affect insurers' earnings, a financial analyst suggests.

Meyer Shields, an analyst with Stifel Nicolaus, says the combination of global natural and man-made catastrophe losses along with loss-cost inflation from 2011 catastrophes, insurers' merger and acquisition activity, RMS Version 11 catastrophe model revision, and worsening core underwriting results is "setting the stage for significant mid-2012 rate increases" of around 10 percent on commercial lines business.

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