APRIL 26, 2022 07:35 AM (EDT)
Best's Market Segment Report: AM Best Maintains Stable Outlook on London Market Insurance Segment
|Jessica Botelho-Young, CA|
Associate Director, Analytics
+44 20 7397 0310
+44 20 7397 0320
|Richard Banks |
Director, Industry Research – EMEA
+44 20 7397 0322
Director, Market Development
+44 20 7397 0280
FOR IMMEDIATE RELEASE
LONDON - APRIL 26, 2022 07:35 AM (EDT)
AM Best is maintaining its market segment outlook for the London market insurance segment at stable. Key supporting factors include the continuing upward premium rate momentum, which is expected to support better underlying performance, and reduced uncertainty around COVID-19 losses.
A new Best’s Market Segment Report, “Market Segment Outlook: London Market Insurance”, also highlights the focus on market modernisation, which should reduce cost, and the greater accessibility of third-party capital to the London market, as supporting the stable outlook.
Factors moderating these positives include modelling challenges presented by changing climate trends, as well as U.S. casualty reserve adequacy concerns, prompted by adverse claims inflation trends. In addition, the segment faces increased losses for lines affected by supply chain disruptions, labour shortages and rising general inflation, particularly for property business.
The conflict in Ukraine is likely to be a major, albeit manageable, loss for the London market. However, there is material uncertainty associated with the magnitude of potential direct and second order losses, particularly as claims will be highly complex and could be litigated for many years.
To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=319398 .
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.