Fitch maintains negative outlook for the London insurance market
The outlook for the London insurance market remains negative for 2018, as stated in a recent report by Fitch Ratings.
The technical results are likely to remain under pressure notably due to an increase in the claims experience and the small contributions induced by the release of reserves.
Within a month, the market was hit by hurricanes Harvey, Irma and Maria, as well as by two earthquakes in Mexico, with total insured losses estimated at 100 billion USD.
According to Fitch, the rate increases initiated in the insurance industries exposed to natural catastrophes, would be difficult to extend in the other insurance lines. Abundant capital and increased competition leave insurers with no margin to raise their rates sufficiently.
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