AM BestTV: Despite Storms, Outlook for Germany’s Non-Life Sector Stable, Says AM Best Financial Analyst

CONTACTS:

FOR IMMEDIATE RELEASE

OLDWICK - JUNE 25, 2019 12:51 PM (EDT)
In this ^AMBestTV episode, Konstantin Langowski, financial analyst, AM Best, said despite a slight deterioration of the combined ratio for Germany’s non-life industry in 2018, the overall sector’s financial condition still supports a stable market segment outlook. Click on http://www.ambest.com/v.asp?v=germannonlife419 to view the entire program.

Langowski spoke about AM Best’s rationale for its stable outlook on Germany’s non-life sector.

“The three main reasons for AM Best’s stable outlook are the sector’s solid rate adjustments, the German non-life insurers’ strong balance sheets and good enterprise risk management,” said Langowski.

He also addressed why AM Best expects the sector’s growth to slow down in 2019.

“Growth will be subdued in 2019. Although domestic demand is likely to remain robust, the slowdown in global economic momentum, as well as continuous trade tensions, remains a key risk for the German economy. However, solid rate adjustments are likely to remain a positive factor for growth in the German non-life market.”

Looking forward, Langowski said he believes some of the challenges to the sector will be the continued unfavorable performance of the property market, due to commercial property results, which has been weak over the past five years. In addition, severe-weather events in certain years also have had a negative impact on the combined ratios of private property carriers.

To access a copy of this market segment report, titled, “Market Segment Outlook: Germany Non-Life”, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284326 .

Recent ^AMBestTV episodes:

• To Cover the Biggest Risk Needs, Think Microinsurance: Attendees at the International Insurance Society (IIS) Global Insurance Forum said insurers coming together to create programs and products, along with technology, are helping to bring insurance coverage to developing and impoverished regions: http://www.ambest.com/v.asp?v=iis3619 .


• Closing the Protection Gap Takes More Than Insurance: Insurers gathered at the IIS Global Insurance Forum said new analytic tools and better risk reduction will help reduce losses to disasters, not just transfer more risk to insurers: http://www.ambest.com/v.asp?v=iis2619 .


• Insurers’ Biggest Risk Is Losing Touch With the Customer: Attendees to the IIS Global Insurance Forum said insurers are leveraging technology and analytics, but are competing with a wider range of service providers for the attention and trust of customers: http://www.ambest.com/v.asp?v=iis1619 .


• Hong Kong’s New Health Program Widens Insurers’ Opportunities, Says Manulife CEO: Guy Mills, chief executive officer, Manulife (International) Ltd., said Hong Kong’s new voluntary health insurance scheme provides tax incentives for residents to broaden their health coverage, easing pressure on government programs: http://www.ambest.com/v.asp?v=mills519 .

^AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^AM BestTV episodes at http://www.ambest.tv .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.