APRIL 15, 2020 11:22 AM (EDT)
Best’s Market Segment Report: AM Best Maintains UK Non-Life Insurance Market Outlook at Negative
|William Keen-Tomlinson, ACA|
Senior Financial Analyst
+44 20 7397 4395
Catherine Thomas, CFA
Senior Director, Analytics
+44 20 7397 0281
|Richard Banks |
Director, Industry Research – EMEA
+44 20 7397 0322
Director, Market Development & Communications
+44 20 7397 0280
FOR IMMEDIATE RELEASE
LONDON - APRIL 15, 2020 11:22 AM (EDT)
AM Best is maintaining its market segment outlook on the United Kingdom non-life insurance market at negative. Key factors underpinning the outlook include an expectation of lower premium volumes due to the economic slowdown driven by the coronavirus (COVID-19) pandemic, as well as persistent pressure on underwriting performance from strong competition and claims inflation. The outlook also considers the ongoing political and economic uncertainty associated with Brexit and regulatory scrutiny of retail pricing practices.
A new Best’s Market Segment Report, titled, “Market Segment Outlook: United Kingdom Non-Life,” notes that insurers have welcomed changes to the personal injury compensation system set out in the Civil Liability Act, which became law on 20 December 2018. However, many of the provisions are yet to be implemented, and when they are, it is expected that the majority of any savings will be passed on to policyholders in the form of premium reductions.
Capital adequacy in the U.K. non-life market is generally robust and AM Best expects the sector to remain well-capitalised, in spite of pressure on underwriting earnings and COVID-19-driven financial market volatility.
To access a complimentary copy of this market segment outlook, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=296233 .
To view current Best’s Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp .
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.