6 December 2019Insurance

Global P&C insurance 2020 outlook remains stable

The 2020 outlook for global property & casualty (P&C) insurance is stable, underpinned by continuing but slowing economic growth, solid capitalization and constructive pricing trends, Moody’s Investors Service said in its annual outlook.

However, these 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.

Insurers manage these exposures through catastrophe modelling, underwriting and reinsurance.

“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.”

Traditional P&C insurance businesses aim to enhance their products and services through investments in technology. Technology-driven start-ups, or insurtechs, can disrupt certain insurance lines and functions, although traditional insurers often partner with or acquire such ventures.

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

​Swiss Re agrees to sell ReAssure to Phoenix Group  ​ California bans insurers from dropping policies in wildfire areas ​ B2B insurtechs offer investors the best near-term opportunities - report Gallagher appoints new CEO of Canadian Brokerage Operations Guy Carpenter to enhance offering for US public entity clients Total economic losses from Typhoon Kammuri expected to exceed $100m Hagibis claims to exceed €5m ($5.5m) – Sava Re

Don't miss our insurtech email newsletter - sign up today

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
5 December 2019   ‘Some may take advantage of current ultra-low interest rates to increase borrowing.’
Insurance
9 December 2019   Moody’s also affirmed Fubon P&C's insurance financial strength rating.
Insurance
10 December 2019   Solid capital, conservative investment portfolios and product mix are contributing factors.