COVID-19 to weaken US P&C insurers’ premiums
Thursday, 04 16 2020, Category: Rating, Country: United States
For US property and casualty insurers, Moody’s analysts expect the economic shock from coronavirus to cause a decline in premiums, higher claim costs in certain business lines, lower claim frequencies in others, more volatile investment results, and a deterioration in capital.
For claim costs, the coronavirus is expected to have mixed effects, with lower frequencies for personal and commercial auto but higher claims for healthcare workers’ compensation.
However, Moody’s says insurers can weather the downturn based on strong starting capital and liquidity.
“Any downside economic scenario related to the coronavirus could be exacerbated by one or more severe catastrophes or persistent loss cost inflation in excess of P&C pricing trends,” said Moody’s Vice President Bruce Ballentine.
Source:
reinsurancene.ws