Property/casualty outlook stable for 2016
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Positive growth in global property/casualty rates will help the sector remain on a stable outlook for 2016, Moody’s Investors Service Inc. said in a new report Wednesday.
In its “P&C Insurance — Global 2016 Outlook,” Moody’s said that continued growth in advance economies supports property/casualty premium growth and that property/casualty penetration rates are stable in advance economies and rising gradually in emerging economies, supporting a stable outlook.
“P&C premiums are growing in line with economic growth in advanced economies, and faster in emerging economies based on rising penetration rates, even where economic growth is slowing,” Moody’s said in its report.
The mandatory nature of major lines including auto, home and commercial property is a key sector strength, said Moody’s.
Challenges for the sector remain, however, including both natural and man-made catastrophes and reserving for lines with long-tail exposures, said Moody’s.
The ratings firm seemed satisfied with the financial health of the sector.
“P&C insurers generally maintain sound balance sheets with high-quality investments, adequate reserves and good capitalization,” Moody’s said in its outlook.
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