Italian motor premiums to rise after four-year decline
Wednesday, 12 07 2016, Category: Insurance and Reinsurance, Country: Europe
Italian motor insurance premiums are likely to rise in 2017 for the first time in years as low investment returns push insurers to target underwriting profits, according to Fitch Ratings.
Life insurers will also seek to diversify their sources of profits and these trends inform the rating agency’s sustained Stable Outlook for the sector in 2017, Fitch said.
Motor premiums in Italy have not risen since 2012 due to increasing use of telematics products (devices fixed in vehicles to track driving behaviour), strong competition and subdued economic conditions. But telematics growth is likely to slow and claims frequencies are starting to rise, which should contribute to the reversal of the recent pricing trend, Fitch said.
Source: Intelligent Insurer