AM Best is revising its market segment outlook on Spain’s non-life insurance segment to stable from negative.

In its new Best’s Market Segment Report, “Market Segment Outlook: Spain Non-Life Insurance”, AM Best notes that economic development is supporting continued growth in all lines of business in the segment, driven by further increases in premium rates, especially for motor, combined with growth in policyholder numbers; in particular, in the health line of business.

The report also says that while inflationary pressures will continue to pose challenges for non-life insurers, premium rate increases are expected to offset the impact of increasing claims costs on overall profitability.

On the other hand, increasingly volatile weather conditions in recent years have posed a challenge to the segment’s profitability, and it is expected that evolving climate risks will worsen the frequency and severity of weather-related events in the years to come. In this context, increased support from Spain’s natural catastrophe scheme, the Consorcio de Compensación de Seguros, is under discussion to further reduce volatility on the segment’s bottom line.

To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=342869.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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