AMSTERDAM–(BUSINESS WIRE)–AM Best is revising its outlook on Germany’s non-life insurance segment to negative from stable.
The environment in which Germany’s non-life insurers operate significantly changed in the first half of 2022 and uncertainty brings negative pressure to the segment.
AM Best’s decision to revise the outlook reflects its view that economic uncertainty and increased inflation risks will likely pressure German non-life insurer’s growth prospects and profitability over the next year. Rising inflation and supply chain disruptions is leading to increasing claims inflation in property and industrial lines, while motor is further affected by a rise in vehicle usage compared with the COVID-19 period. Together, these factors put pressure on underwriting margins for the segment. AM Best believes that German insurers will continue to aim for overall pricing discipline in their quest to maintain underwriting profitability, although competitive pressure in an environment of rising claims inflation will make it more difficult.
However, the new Best’s Market Segment Report, “Market Segment Outlook: Germany Non-Life Insurance,” notes that the German non-life segment benefits from good diversification, which is expected to support the segment’s results, as weaker levels of performance in some lines are offset by stronger levels in others.
To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=325665.
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. For more information, visit www.ambest.com.
Copyright © 2022 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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Konstantin Langowski
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Edem Kuenyehia
Director, Market Development & Communications
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