Best’s Market Segment Report: AM Best Maintains Negative Outlook on UK Non-Life Insurance Segment
LONDON–(BUSINESS WIRE)–#insurance–AM Best is maintaining its market segment outlook on the U.K. non-life insurance segment at negative.
In its new Best’s Market Segment Report, “Market Segment Outlook: UK Non-Life Insurance”, AM Best cites a number of factors for its negative outlook, including underwriting performance challenges driven by inflationary pressures, the constraint on insurers to increase premiums amid pressure on household incomes and a highly competitive personal lines market. In addition, exposure to weather-related events increases volatility for property lines. At the same time, AM Best believes the higher cost and more limited availability of reinsurance protection is likely to squeeze underwriting margins.
Factors that moderate AM Best’s negative outlook include continued positive pricing momentum in commercial lines and the positive impact of legislative reforms on claims costs, which is likely to increase over time. The rising interest rate environment also presents an opportunity for insurers to reinvest at more attractive yields, given the short average duration of the market’s investments.
To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=330187.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2023 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Contacts
Ben Diaz-CleggSenior Financial Analyst+44 20 7397 0293ben.diaz-clegg@ambest.com
Valeria ErmakovaAssociate Director, Analytics+44 20 7397 0269valeria.ermakova@ambest.com
Richard BanksDirector, Industry Research – EMEA+44 20 7397 0322richard.banks@ambest.com
Edem KuenyehiaDirector, Market Development & Communications+44 20 7397 0280edem.kuenyehia@ambest.com
