Moody’s latest report on P&C says the outlook is stable for 2018
The outlook for global property and casualty (P&C) insurance is stable for 2018, according to Moody’s latest report.
Moody’s expects to see continued premium growth, which will be supported by economic expansion. It suggests that robust capitalisation will off-set the pressure from low interest rates and increasing claims inflation.
Moody’s vice president and senior credit officer Dominic Simpson said: “Continued economic expansion will support premium growth for the global P&C insurance sector in 2018.”
Simpson continued, “We especially see good growth potential in China and other emerging markets which, for example, have P&C insurance penetration rates in the range of 1.5% to 2% of GDP, well below North America, Europe and the worldwide average which is close to 3%. Growing household income and supportive policies in emerging economies will boost insurance penetration, driving P&C market growth in excess of GDP growth”.
In November, Moody’s confirmed that the European outlook was stable, despite low interest rates and mounting challenges.