EMEA insurers face risks from inflation, recession

U.S.-based S&P Global Ratings Inc. expects capital market volatility, recession and heightened inflation to threaten insurers in the Europe, Middle East and Africa region in 2023, Middle East Insurance Review reported. Ppremium rate hikes are expected to be commensurate with the inflation rates in most EMEA markets, but Volker Kudszus, S&P’s credit analyst, said that reinsurance sector may not benefit from rate hikes as the price increases may not be enough to strengthen profitability.