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Global insurance sector outlooks at risk from high inflation & rising interest rates: Fitch

September 16, 2022

In a new report, Fitch Ratings has warned that insurance sector outlooks in several markets across the world could move to deteriorating if both high inflation and rising interest rates continue to persist beyond the rating agency’s latest forecasts.

Analysts have analysed the potential impact of a conservative economic scenario with mid-to-high single-digit inflation throughout 2023 in most regions, together with escalating US and European interest rates.

The scenario, would be likely to trigger deteriorating sector outlooks for many insurance markets in 2023, and some weaker insurers could potentially wind up facing negative rating actions.

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