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FOR IMMEDIATE RELEASE
LONDON - APRIL 06, 2022 07:46 AM (EDT)
AM Best is maintaining its negative market segment outlook on the United Kingdom non-life insurance segment.
Initial expectations that a spike in inflation would be a short-lived as a result of reopening the economy following lockdowns appear to have been optimistic, with the conflict in Ukraine exacerbating underlying macroeconomic factors.
A new Best’s Market Segment Report, “Market Segment Outlook: UK Non-Life Insurance” suggests inflation is likely to drive an increase in claims costs, due to the rise in the replacement cost of underlying parts and increased labour costs. The ability of insurers to weather these increased costs will depend on their ability to achieve commensurate rate rises, which may be suppressed by high levels of competition in the personal motor and household sectors.
Somewhat mitigating those negatives is the continued positive rate momentum in commercial lines, although even here, prices are showing signs of deceleration in 2022.
To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=318859 .
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.