Global P&C insurance 2020 outlook stable but risks remain: Moody’s
The 2020 outlook for global property & casualty (P&C) insurance is stable but increasing claim costs and low investment yields also pose risks for insurers.
That is according to Moody’s Investors Service said in its annual outlook, which said the stability of the sector is underpinned by continuing but slowing economic growth, solid capitalization and constructive pricing trends.
However, the positive factors are tempered by increasing claim costs and low investment yields, which constrain profit margins. P&C insurers are faced with a persistent threat of catastrophes, and annual insured catastrophe losses are trending higher, with 2005, 2011 and 2017 ranking as the costliest years.
“P&C insurers are exposed to the economic consequences of climate change, mainly through its unpredictable effects on the frequency and severity of weather-related catastrophes such as hurricanes, floods, convective storms, droughts and wildfires,” said Moody’s vice president Bruce Ballentine. “Such shifting perils also represent an opportunity for P&C insurers to provide additional coverages and other risk mitigation products for clients.”
