AMSTERDAM–(BUSINESS WIRE)–AM Best is revising its outlook for the Spanish non-life insurance segment from stable to negative.
There has always been a direct relationship between the evolution of Spain’s real gross domestic product (GDP) and the growth of non-life premiums in the country. In recent years, sustained economic growth has supported the development of the non-life insurance segment.
However, a new Best Market Segment Report“Market Segment Outlook: Spain Non-Life Insurance”, notes that the country’s growth outlook remains subject to great uncertainty.
In addition to the potential emergence of variants of COVID-19, the threat of further inflation and supply chain disruption following Russia’s invasion of Ukraine (and international sanctions imposed on Russia) could also undermine the economic rebound and consumer confidence, and reduce growth prospects. for non-life insurers. At the same time, increasingly unstable weather and rising inflation could pose underwriting challenges, the report said.
These negative points are mitigated by the segment’s good underwriting fundamentals: the Spanish non-life insurance segment benefits from a solid underlying technical performance and has held up well in the past difficult macroeconomic conditions. It is also one of the most profitable non-life segments in Europe.
AM Best notes that the segment’s good underlying fundamentals provide a buffer to absorb some of the volatility from both increased climate risk and inflation.
To access a free copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=319066.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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