Buyers in the UK and Italy face highest rate hikes in Europe this year, says Fitch
Non-life insurers in the UK and Italy will push through the strongest rate increases in Europe in 2024, according to Fitch Ratings. Announcing improving outlooks for the UK and Italian non-life insurance markets, Fitch said premium rate increases for the two markets are likely to outpace inflation and boost profitability for players.
Non-life insurers in Germany, France, the Netherlands and Spain are also likely to impose higher premiums on their buyers, but Fitch says its neutral outlooks for the four countries in 2024 anticipate that price rises are likely to be more limited by competition or societal pressure.
Europe’s non-life insurers are also expected to see profits lifted by easing claims inflation and better fixed-income yields, the rating agency said, while rates “have largely caught up” with the increase in claims costs for weather-related exposures.
The London insurance market saw several insurers record double-digit rate increases in the first half of 2023, with Fitch certain that rate increases for corporate risks will continue to exceed loss cost trends in 2024. Fitch said underwriting profitability for London market players will “peak” in 2024.
The UK company market also recorded significant rate increases in 2023, Fitch said, with further increases predicted for 2024 but under regulatory scrutiny for fair value.
Fitch said motor rates in Italy will increase significantly in 2024, increasingly profitability in the sector coupled by expected profit strengthening in non-motor lines too.
