Reinsurance News
inflation
Large Nordic insurers maintain strong credit profiles despite economic headwinds: Fitch
18th April 2023
According to a new report from Fitch Ratings, large Nordic insurers managed to maintain strong credit profiles throughout 2022, which was heavily supported by the resilient economic and operating environment within the Nordic region. Analysts stated that Nordic economies - defined as Denmark, Finland, Norway and Sweden in the report - ... Read the full article
Allianz, Axa and Zurich ‘successfully managed’ inflation, interest rate risk: Fitch
13th April 2023
Fitch Ratings said the three main European insurance groups – Allianz, AXA and Zurich - "successfully managed" the effects of the macroeconomic environment like high inflation and interest rates. "Allianz, AXA and Zurich successfully managed 2022’s macroeconomic challenges thanks to their very strong company profiles, rigorous risk management and sophisticated asset- ... Read the full article
P&C claims growth to ease as inflation moderates: Swiss Re
20th March 2023
Analysts at Swiss Re have warned of continued claims severity pressures for property and casualty (P&C) re/insurers over the coming year, although the firm says that claims growth will ease slightly alongside a moderation in inflation. Swiss Re expects headline inflation to decline but stay elevated in 2023, to some extent ... Read the full article
Social inflation contributes to $30bn increase in commercial auto costs: Triple-I
8th March 2023
U.S. commercial auto insurance liability claim payouts swelled $30 billion more than anticipated between 2012-2021 due in part to social inflation, suggests a paper by the Insurance Information Institute (Triple-I), in partnership with the Casualty Actuarial Society (CAS). The Triple-I/CAS paper, Social Inflation and Loss Development – An Update, authored by ... Read the full article
Persistent inflation key threat for European insurance CFOs: Moody’s
3rd March 2023
Inflation is the key concern for European insurance Chief Financial Officers (CFOs) followed by a downbeat economic outlook and market volatility, a Moody’s survey has revealed. CFOs from 22 leading European insurance firms participated in the survey, which also found that insurers are changing their investment plans and use of excess ... Read the full article
Creditworthiness of Japan’s insurers likely to remain stable in 2023: S&P
13th February 2023
With inflation and its consequences roiling global financial markets, preparations for tougher times by Japan’s insurers are looking to have paid off, according to S&P Global Ratings. In S&P’s view, the creditworthiness of Japan’s insures will likely remain stable in 2023. With financial markets likely to continue to fluctuate due to central ... Read the full article
2023 global economy to be shaped by high inflation and geopolitics: Munich Re
8th February 2023
High inflation and low growth are expected to mark the global economy in 2023. However, it will cope better than initially expected with the consequences of the war in Ukraine, sharp price increases and higher interest rates, according to Munich Re’s Economic Outlook for 2023. Chief Economist Michael Menhart commented: “The ... Read the full article
UK insurers’ set to face slowing premium income growth in 2023: EY
8th February 2023
According to a recent EY ITEM Club report, UK insurers’ are set to face slowing premium income growth this year, as high inflation, cost of living pressures and a rise in borrowing costs continue to impact product demand. The report suggests that both non-life and life sectors are expected to experience ... Read the full article
Gallagher Re forecasts “inevitable” market adjustments amid inflation
6th February 2023
Analysts at reinsurance broker Gallagher Re have argued that market adjustments to ensure solvency for the re/insurance industry will be “inevitable” as the market looks to balance the continued effects of inflation, social inflation, elevated supply costs, and other variables. In its 2022 Natural Catastrophe report, Gallagher Re notes that nat ... Read the full article
Rising claims & reinsurance costs set to erode the French non-life insurance sector: Fitch
1st February 2023
According to Fitch Ratings, rising claims and reinsurance costs due to persistent high inflation and climate change will erode underwriting margins in the French non-life insurance sector, most particularly within retail P&C where pricing dynamics are less favourable than in commercial P&C. Both government intervention and legislative changes also remain major ... Read the full article
High inflation & spikes in interest rates cause challenging renewal season: Aon
31st January 2023
Aon’s January Reinsurance Market Dynamics report: Macro Conditions: Extreme Volatility, cites 2022 as being tricky for the industry, with inflation hitting multi-decade highs, as well as interest rates rising to an almost “unprecedented pace”. The report also noted that equities had their worst year since 2008, and for the first time ... Read the full article
Inflation creates opportunities for insurers to respond to new environment: GA
27th January 2023
Insurers could take a wide range of management action in response to the new macroeconomic environment that has caused the return of inflation, which in turn has created opportunities for the market, according to a recent report by The Geneva Association. The resurgence of inflation in late 2021 arose from the ... Read the full article
We were over-optimistic about inflation crisis: Mumenthaler
18th January 2023
Swiss Re CEO Christian Mumenthaler has acknowledged that re/insurers and other financial institutions were “over-optimistic” in the lead up to the current inflationary crisis affecting the world economy. Speaking to CNBC news from the Davos 2023 World Economic Forum (WEF) event yesterday, Mumenthaler addressed the issue of reinsurance pricing increases coming ... Read the full article
Insurance in 2023: A slow recovery but there is a silver lining – Berger, Swiss Re Corporate Solutions
11th January 2023
The world is coming to the end of another tumultuous year and the question on everyone’s mind is: what is next for the global economy and the insurance industry? From Swiss Re Corporate Solutions' vantage point right now, while the firm still sees short-term pain over the next year, there ... Read the full article
Market deviations reflect inflationary challenges for non-life sector: Fitch
10th January 2023
While the global outlook for the non-life insurance sector remains neutral, this classification belies the significant challenges faced by many developed markets as they feel the impacts of inflationary pressures, according to Fitch Ratings. The rating agency noted that these impacts will vary considerably by region and market, and even by ... Read the full article
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