Rates for US commercial insurance business rose by six percent in the third quarter compared to the same time period last year, suggesting sustained momentum in the sector, according to the latest survey from Towers Watson.The global professional services firm said this marks the seventh consecutive quarter of aggregate price increases across all commercial lines based on the findings of their Commercial Lines Insurance Pricing Survey (CLIPS).CLIPS data are based on both new and renewal business figures obtained directly from carriers underwriting the business. This particular survey compared prices charged on policies during the third quarter of this year and during the third quarter of 2011.Thirty-nine insurers participated in the survey representing approximately 20 percent of the US commercial insurance market. The participants represent a cross section of the US property & casualty insurers that include many of both the top ten commercial lines companies and the top 25 insurance groups in the US.The largest price increases year over year included workers’ compensation and employment practices liability, followed closely by commercial property where price increases have moderated somewhat since last quarter. Increases have accelerated for each of the remaining surveyed standard commercial lines since the second quarter. Within standard commercial lines, midmarket and large accounts saw the largest increases this quarter. Specialty lines prices also continue to increase, but not as rapidly.“In the current environment, underpricing of current business could seriously harm net income,” said Tom Hettinger, property & casualty sales and practice leader for the Americas, Towers Watson. “Declining reserve releases, combined with insufficient investment income, have put enormous pressure on earnings. Pricing discipline, as a result, is even more important — and underwriting results really need to perform well for the foreseeable future.”Loss costs reported by participating carriers pointed to an improvement of more than three percent in loss ratios to date for accident-year 2012, relative to the same period in 2011, as earned price increases more than offset reported claim cost inflation. If this level is maintained through year-end and as losses develop, it will indicate a reversal from the estimated four percent deterioration between 2010 and 2011.