The slowdown in the insurance industry's pricing momentum is not surprising to financial-analyst firm Keefe, Bruyette & Woods, but it is concerning, as a return to normalized levels of both catastrophes and loss-cost inflation could cause problems for the industry when combined with rate deceleration/decreases, the firm says.

KBW expects strong fourth-quarter underwriting results for the property and casualty industry in light of below-average catastrophe losses. But that positive news for the industry "will be accompanied, and in some cases overshadowed" by "disappointing pricing rhetoric," KBW says. The firm notes that it is not surprised about the statements on pricing given insurers' "superficially acceptable" 2013 results.

According to an ISO and Property Casualty Insurers Association of America review, the U.S. P&C sector saw its net income after taxes rise to $43 billion in the first nine months of 2013, compared to $27.8 billion for the same period in 2012. The results were driven in part by $10.5 billion in net gains on underwriting for the period, a reversal from $6.2 billion in net losses on underwriting in nine-months 2012.