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Fitch Ratings has said the European outlook for insurance in 2025 is neutral, which reflected its expectation of resilient operational and business conditions for most of the sectors covered in life and non-life but that pressures such as inflation had dampened outlooks.
However, despite the ‘neutral’ prognosis the report was mostly positive about Europe’s insurance industry going into 2025 and said key fundamentals in many markets were strong.
“Our sector outlook for European insurance is ‘neutral’ in light of declining interest rates, easing inflation and our expectation for disciplined pricing,” said Sabine Bauer, Head of EMEA Insurance, at Fitch Ratings and the author of the report. “The tilt towards ‘improving’ for Italian life insurers reflects our expectation for lower lapses and higher volumes while that for the German non-life sector signals the prospect of better tariffs.”
