Insurance premiums in Britain will likely continue softening this year and expansion plans at insurers should be executed in a “responsible and sustainable” manner, the Bank of England said on Monday.
Chris Moulder, the BoE’s director of general insurance, said the soft environment of last year is likely to continue in much the same vein in 2016.
“We see premium rates in several lines continue to fall and, at the same time, extended terms and conditions are being accepted,” Moulder said in a speech.
Companies have been cushioned by the continued absence of significant natural catastrophe losses, and prior year reserve releases, Moulder said.
Many business plans at insurers still, however, contain some element of growth for 2016.
“I want to be quite clear that we don’t consider this, in itself, to be problematic. It is, however, important that firms that are looking to expand in current market conditions do so in a responsible and sustainable manner and are transparent with Boards about how they intend to attract business.”
Source: Reuters