Insurance

The European Insurance Sector is rated higher than other European sectors as European insurers have robust capital surpluses and deliver solid operating performance. Higher interest rates are not leading to materially higher margins in life insurance lines. After years of premium rate increases, primary insurers in motor insurance are now ahead of claims inflation. AI is not increasing operating efficiency yet, but it is increasing cyber risk by facilitating cyber attacks. Softening re-insurance pricing might be beneficial for primary insurers at the margin. Private markets exposure is increasing but, for most, remains too limited to enhance margins or be a material risk factor for now.